Even with supply chain issues and labor shortages, U.S. rental revenue is expected to grow by 11.1% to reach nearly $56 billion this year, according to the latest American Rental Association (ARA) quarterly forecast.
The ARA is a Moline-based international trade association for owners of equipment and event rental businesses.
In its forecast, the association said construction equipment is leading the way with 13% growth this year to total $41.7 billion in revenue. The growth trend follows a 10.2% increase in 2021. General tool revenue is expected to grow 7% in 2022 to reach $14.1 billion.
While equipment rental revenue growth is expected to slow to 6% next year, 2.9% in 2024 and 3.6% in 2025, the industry is expected to surpass $60 billion in 2024. The industry’s revenues also are forecast to reach $65.5 billion in 2026.
“One thing we know is that rental revenues grow when the fleet expands or when rates increase,” John McClelland, ARA vice president for government affairs and chief economist, said in a company news release.
He said both those things are happening now but “supply chain issues are inhibiting fleet growth while inflation is pushing rates higher.”
The revenue forecast for Canada is similar to the United States with 9.6% growth for the year to reach $4.5 billion. It is predicted to be followed by increases of 6.4% in 2023, 3.8% in 2024, 2.1% in 2025 and 1.8% in 2026 when it could reach $5.2 billion.
ARA’s membership network includes more than 11,000 rental businesses and more than 1,000 manufacturers and suppliers across the nation and in more than 44 countries worldwide.