American rental on course for revenue record

The latest revenue forecast from the American Rental Association (ARA) shows the industry in the USA slowing down compared to three months ago - but still on course to set a new record.

The forecast projects total revenue growth of nearly 8% for a total income of $38.5 million (€34.5 million) by the end of 2015.

Though the forecast has been modified slightly from the previous ARA Rental Monitor published in February, the figures themselves remain much the same.

“Those in the rental industry have learned how to thrive in different economies and customers continue to learn that renting equipment is a smart move as market conditions today can change rapidly,” says Christine Wehrman, ARA executive vice president and CEO.

“Even as several forces, including harsh weather, held back US economic growth in gross domestic product to 0.2% in the first quarter, total rental revenue was up 4.9% in the same time period and is expected to exceed 9% in the second half of the year.”

As well as steady overall growth, the ARA reported that all three main sectors - construction and industrial, tool hire and party/events – remain set to increase revenues in their own right.

Construction and industrial is forecast to increase by 8.2% (8.5% in February) to $25.9 billion (€23.2 billion). This compared to $26 billion (€23.3 billion) in the previous forecast.

Projected growth for general tool hire is 7.9%, down from 8.3% with a $0.4 billion (€0.36 billion) drop in revenue.

By contrast, the party and event sector is expected to grow by 4.7%, compared to 4.5% last time, though revenue at $2.7 billion (€2.4 billion) remains constant.

Scott Hazelton, managing director of the Rental Monitor’s compiler, said: “The equipment rental industry will achieve its new peak level as a result of a prolonged gradual improvement in the economy as a whole, and the construction, industrial and consumer markets in particular.”