ARA prjects 8.2-percent increase in equipment rental industry in 2012

|  August 21, 2012 |

The American Rental Association (ARA) expects North American equipment rental industry revenue to increase by 8.2 percent in 2012 to reach $34 billion by the end of the year.

This growth is fueled by a strong revenue growth projection of 9 percent in the construction and industrial segment to $22.7 billion and 8 percent in the general tool segment to $8.7 billion. ARA projects the party and event segment to grow 3.1 percent in 2012 to reach $2.6 billion in revenue.

ARA expects economic growth rate to be consistent with the previous quarter, since the industry continues to outperform the United States economy at a rate more than four times GDP.

The ARA Rental Market Monitor current five-year forecast calls for steady, high single-digit growth in 2013 with double-digit revenue growth for the equipment rental industry in 2014, 2015 and 2016 to reach total North American rental revenue of $51.7 billion in 2016.

ARA projects the rate of investment in equipment to reach $9.85 billion in 2012, an increase of more than 15 percent from 2011. Investment in equipment as a percentage of sales is forecasted to be 31.7 percent in 2012, a percentage that is likely to be even greater the next three years.

These projections are based on recently updated quarterly figures by IHS Global Insight, a forecasting firm and a partner with ARA in providing data and analyses for the ARA Rental Monitor subscription service for association members.

Do you want some tips to stay safe on the job site?

Equipment World has created an entire section devoted to safety.

Click here to check it out. »


Here are the most recent tips we've posted:

Hauling headaches: Know your load limits when trailering equipment

One-man machines: The operator should be the only person on a wheel loader