In its updated forecast released at The ARA Show, the American Rental Association indicates that the United States equipment rental industry’s growth has a fairly positive outlook.
ARA, which is based in Moline, is an international trade association for owners of equipment and event rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment.
In its forecast report, the year-over-year growth was expected to be 7.6% in 2023 and 3.1% in 2024. The recently updated projections indicate a 7.9% increase in 2024 – totaling $77.3 billion in construction and general tool rental revenue.
“The ARA Rentalytics quarterly forecast reinforces the strength of the rental industry,” Tom Doyle, ARA vice president, program development, said in a news release. “Rental should benefit with tailwinds from interest rates, inflation, improving supply, a preference to rent, and government and private spending. Rental revenue is again forecasted to increase.”
Looking more granularly at construction and industrial equipment (CIE) growth in the United States, $60.9 billion is the projected revenue in 2024, which is 7.5% growth. In the coming years of 2025, 2026 and 2027, 3% growth is projected. The difference is smaller but still appreciable and more in line with a steadily growing economy, the release said.
“We see a slowing of growth this year compared to last year but bear in mind, we have a slowing of inflation this year as well,” Scott Hazelton, managing director at S&P Global, said in the ARA release. “The growth rates tail off in the future years, with growth of 4.3% in 2025 and 3.9% in 2026.”
The current forecast for total Canadian equipment rental revenue shows a 3.1% growth to $974 million in 2024. The 2024 growth is stronger in Canada than its 2023 growth due to inflation and resilient demand. In addition, Canada’s housing market and non- residential structure construction are both improving.
“ARA’s quarterly member survey showed conflicting results amongst members with just over half of respondents saying they saw a revenue increase in quarter four, a slight improvement over quarter three which saw an even split between those an increase and decrease,” said Mike Savely, ARA director, program development.
