ARA forecasts 12.5% revenue hike in 2022

By Belinda Smart10 August 2022

Despite economic indicators described as “mixed and uncertain” the American Rental Association (ARA) is predicting growth for equipment rental revenue in the US - albeit tempered by caution over inflation and supply delays - according to the latest quarterly update of its five-year forecast.

The American Rental Association logo

The update, released on 3 August, projects equipment rental revenue, including the construction and general tool segments, will grow 11.2% to nearly reach $55.9 billion in 2022.

Growth of 6.2% is predicted in 2023, 2.5% in 2024, 3.3% in 2025 and 3.7% in 2026 to total more than $65.1 billion.

For construction equipment rental revenue, the forecast calls for a 12.5% increase in 2022 to surpass $41.6 billion, with growth slowing to 7 percent in 2023, 2% in 2024, 3% in 2025 and 3% in 2026.

General tool growth is expected to be 7.4 % in 2022 and then remain steady, with 5% growth in 2023, 3% in 2024, 5% in 2025 and 5% in 2026.

Tom Doyle, ARA vice president for program development, said; “Rental revenue continues to experience significant growth, despite some headwinds in 2022.”

“The longer-term forecast, while showing slower growth than this year, remains bullish. It is generally a good time to be in the equipment rental industry,” he added.  

“In these times of higher uncertainty, it is prudent to closely watch the driving factors to the forecast for changes that will affect build schedules for original equipment manufacturers (OEMs) or demand for rental companies.

“Depending on how long we have high inflation, supply chain constraints, labor shortages and climbing interest rates, those econometric drivers can have an impact on the rest of 2022 and the outlook for 2023.” 

The ARA forecast for equipment rental revenue in Canada, combining construction and general tool revenue, mirrors the outlook for the US, projecting growth of 14.4% in 2022 to $4.7 billion, 6% in 2023, 2% in 2024, 3.4% in 2025 and 3.3% in 2026 to exceed $5.4 billion.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
REIC makes second acquisition in 10 days
Rental company’s North American expansion set to continue, says parent company Kinderhook
Boels reveals €551 million investment
Long-term growth expected for the construction equipment rental market, the company says
JLG introduces a ‘company-first’
JLG’s X660SJ crawler boom offers operators a new solution for working at height
CONNECT WITH THE TEAM
Ollie Hodges Publisher Tel: +44 (0)1892 786253 E-mail: ollie.hodges@khl.com
Belinda Smart
Belinda Smart Editor Tel: 44 (0)1892 786209 E-mail: belinda.smart@khl.com
CONNECT WITH SOCIAL MEDIA