Rental businesses around the country got a well-deserved piece of good news in early August, 2018, when the American Rental Association (ARA) released another strong rental revenue forecast. For the second quarter in a row, the ARA is not only projecting significant increases in revenue for the equipment and event rental industry, but those forecasts are actually higher than they were on the report that was released just a few months earlier in May.
The Revenue Rental Forecast: Breaking Things Down
According to the report, rental revenue is expected to hit $53.04 billion by the end of 2018 – up an impressive 7.6%, year-over-year. That growth is expected to grow at a rate of 5.8%, 5.9% and 5.1% in 2019, 2020 and 2021, respectively, before finally reaching $65.4 billion by as soon as 2022.
To put that into perspective, May’s forecast predicted that revenue would hit $52.3 billion in 2018 before growing to $64.1 billion by 2022.
But the most important thing to understand is that this new level of growth knows no bounds. The rates for 2018 and 2019 in particular are looking particularly strong across all segments of the industry and the forecast itself represents rates that are more than double that of the country’s GDP. While it’s certainly true that the longer forecast could potentially change because of the impact of the recently announced tariffs on both the economy and construction projects, it’s far too early to tell what that impact will actually be.
But at the end of the day, staying aware of positive trends across the rental industry is only one small part of a much larger story. Equally important is your ability to capitalize on those trends – to make use of every positive opportunity that is available, as it becomes available, as quickly as possible. For that, you need the right software at the heart of your organization with the power to optimize your revenue recognition to further everything you’ve already worked so hard to build. Solutions like Rental360 are designed specifically with that goal in mind, putting you in a better position than ever to turn real-time insight into the action you need when you need it the most.