The equipment rental industry will continue growing this year and into 2007, according to a study by the American Rental Association.
The ARA 2005 State of the Equipment Rental Industry report states the U.S. rental market, consisting of the construction and industrial equipment, general tool and party/event segments, reached $31.1 billion in revenue last year. Of this total, more than 70 percent was generated by the construction and industrial equipment segment, which had revenues of $21.9 billion.
The primary drivers of rental activity — residential and nonresidential construction, corporate profits, disposable income and home improvement spending — have been strong relative to general economic growth.
Christine Wehrman, chief executive of ARA, said economic predictions point to total U.S. industry revenue growing at 6 percent in 2006 and close to 5 percent in 2007, resulting in a U.S. rental market of approximately $34.6 billion by 2007. The rate of this growth outpaces total gross domestic product growth, the report says, indicating real gains to the rental channel and a greater contribution by the rental industry to national GDP.