Rent Smart: American Rental Association members report realistic growth in 2008

A State of the Industry Update report issued by the American Rental Association says members are more optimistic for construction industry growth this year than previously expected.

In cooperation with Global Insite, an economic forecasting and consulting firm, ARA hosted a webinar in June and found that, based on information gathered from ARA members, overall U.S. construction revenues for 2008 and 2009 should be comparable to or above the levels experienced in 2005-2006.

Ken Hughes, vice president of communications with ARA, says that those firms with realistic expectations will find growth in 2008 to be at realistic levels. “If you’re comparing the 25-percent growth levels we saw in the bumper years of 2006-2007 with this year, you may be disappointed,” he says. “But if you look at the growth percentages of around 12 percent in 2005, which was considered a good year, and compare it to the growth we are seeing this year, you will find that level to be more reasonable. Twelve percent growth in a year is a good year.”

Hughes says one contractor who participated in the webinar said his company has gone from ‘frantic’ growth to ‘manageable’. Hughes says ARA has some members who are in slow markets but it seems to be localized.

Highlights of the report are available at www.ararental.org. ARA will host another webinar in the fall.


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