The new five-year forecast for equipment rental industry revenues released by the American Rental Association (ARA) continues to call for steady gains, and expectations for growth are greater than in the previous forecast.
The issues going forward are how Congress is going to deal with tax reform and infrastructure spending, says a blog on ConExpo-Con/Agg website.
If tax reform can lower rates and simplify the code for all businesses that could be a sign of even stronger growth and a strong infrastructure bill will add to that momentum.
ARA now projects US equipment rental revenue to reach $49.4 billion in 2017. The recent forecast calls for US rental revenue in 2021 to reach $59.4 billion, combined for the three segments of the industry including construction/industrial, general tool/light construction, and party/special event.
The equipment rental industry continues to post strong performance numbers with annual revenues closing in on the $50 billion mark this year. Weak first quarter numbers for the US gross domestic product masked solid demand for investment, which will help fuel growth in equipment rental revenues.
Construction growth has remained robust. While it will moderate during the year, it will support significant rental potential. Reduced headwinds from exchange rates and improving business confidence are also aiding the industrial sector and its equipment rental demands.
In Canada, the five-year forecast calls for accelerating revenue growth each year, to reach $5.12 billion in 2017. Construction and industrial equipment and general tool rental revenues are expected to grow through 2021. Construction companies that rent equipment will play a big part in the market.
Companies that rent equipment to contractors may have a hard time keeping up with demand, as renting becomes more popular among contractors.
