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Economic forecasting firm IHS Global Insight reports in data prepared for the American Rental Association (ARA) and Rental Management magazine reports that the equipment rental industry is starting to show signs of recovery from the national recession.
“The Outlook report indicates that, the worst may be over for the equipment rental industry,” says Christine Wehrman, CEO of ARA in a press release. “The U.S. economy is proving its resilience with growth returning to many sectors. However, construction spending continues to lag behind the rest of the economy.
“While construction spending is weak, spending on rental is beginning to grow and is leading the way in the construction space,” Wehrman continues. “We see the equipment rental industry gaining momentum in 2010 and 2011, with significant growth moving into 2012. These are positive signs for the entire economy as manufacturers, service providers and other vendors begin their budget planning for 2011 in the coming weeks and months.”
Wehrman notes that although nonresidential construction, state and local spending remain down, other areas of the U.S. construction market have begun to rebound.
“With business equipment investments surging, almost $6 billion in stimulus money flowing into the economy in 2010 and consumer confidence driving increased demand, the equipment rental industry is poised to gain strength in Q3 and Q4, with improvement in all categories forecasted for 2011,” Wehrman says.