
Rental equipment revenue will grow a moderate 3% over 2020 through the remainder of 2021 β but hang on in 2022.
The American Rental Association says it now expects the combined construction/industrial and general tool rental revenue to grow by almost 10% next year, reaching a record $52.4 billion. That number even tops the rental industry's 2019 height of $50.9 billion.
The news is even brighter for the construction equipment segment, which ARA forecasts will grow 12.3% in 2022, reaching $38.7 billion. ARA says it did not include the impact of the proposed infrastructure bill β now making a tortuous path through Congress β in its calculations.
American Rental Association
IHS is monitoring the market to see to what degree inflation β which has not been an issue for more than a decade β is inflected in rental-rate increases.
ARA also issues a five-year projection with each forecast. It now projects rental revenues to grow 5.5% in 2023, 2.5% in 2024, and 3.3% in 2025 to reach $58.6 billion.
ARA says rental companies slashed construction equipment and general tool capital expenditures by 44.4% in 2020, dropping equipment investment to $7.64 billion. Now on the rebound, ARA predicts equipment investment will grow by 36.2% this year to $10.4 billion, followed by another 36% increase to $14.2 billion in 2022. Additionally, this investment will grow by 10.9% in 2023, 2.3% in 2024 and 3.8% in 2025 to total more than $16.6 billion, according to ARA.