As an industry, equipment and event rentals are expected to close higher than US $71.7 billion by the year 2022, according to the American Rental Association (ARA). This number is primarily due to improvements in the American economy, although Canada is forecasted to contribute a considerable US $6.3 billion to the effort.
The numbers are even more impressive considering that 2019 forecasts are expected to be slower than 2018. Studies show that equipment rental revenues will outpace the general economy in North America at a more accelerated rate starting in 2019.
Year over year rental revenues in the United States will finish 7.6 percent higher in 2018 than in 2017. From 2019 to 2022, the industry is expected to grow by margins of 5.5 percent, 5.9 percent, 5.1 percent and 4.7 percent respectively.
The industrial construction segment of the industry takes up the most space in the overall market. It is expected to enjoy growth of 5.6 percent, 5.3 percent, 4.4 percent and 4 percent in 2019, 2020, 2021 and 2022 respectively.
If these figures hold true, total revenues for industrial construction will be US $44.85 billion. General tool revenues should reach US $16.34 billion by 2022, while the party and event segment will rise to US $4.27 billion.
The resilience of the American economy seems to be the main catalyst driving the impressive industry growth, and no one sees a slowdown in the works anytime soon.
Because of the stability in the industry, American investments in equipment to be rented will also remain steady. By the end of the period being studied, the investment should reach US $15.4 billion.
In an environment like this, the major issue is not finding business – it is being ready for the business that is being presented. The successful equipment and rental management companies during the next five year period will be the companies exhibiting the professionalism to scale and maintain inventory in a forward thinking manner
A complete rental solution like Rental360 ensures that you never fall behind in a market that is moving full speed ahead. Are you keeping pace?