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.