The equipment rental industry is expected to see more than a 10% increase in revenue this year and reach $52.7 billion in the United States.
That’s the forecast from the latest quarterly report by the American Rental Association (ARA).
The Moline-based ARA is an international trade association for owners of equipment and event rental businesses, and manufacturers and suppliers of various equipment.
The forecast also calls for equipment rental revenue, which includes construction, industrial and general tool revenue, to increase by 6% in 2023, 2.9% in 2024, and 3.4% in 2025 to reach almost $60 billion nationwide.
“This is a market that will surpass the peak revenue levels of 2019,” said Scott Hazelton, director of economics and country risk for IHS Markit in Andover, Massachusetts. (IHS provides data and analysis for the ARA forecasting service.)
“That means the impact of the coronavirus (COVID-19) on equipment rental revenue will be unwound by the end of the year,” he said.
Construction and industrial equipment rental revenue is expected to lead the way with a 12% increase in 2022 to $38.9 billion while general tool revenue is expected to grow by 5% to reach $13.9 billion this year.
The largest uncertainty facing the industry that could impact the U.S. forecast is the current rate of inflation, which was recently reported to be 7.5%, year over year, according to the ARA report.
The association’s forecast for equipment rental in Canada mirrors the positive expectations in the United States, calling for a 5.5% growth this year to reach nearly $4.4 billion followed by growth of 5.7% in 2023.
