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Rental on the rise

Words: Dan KamysSignificant U.S. revenue growth for the equipment rental industry is forecasted for the next several years and will exceed $46 billion in 2017, according to ARA’s Rental Market Monitor service. The largest growth potential is in the construction and industrial market segment, followed by general tool/do-it-yourself. Data and analysis for ARA Rental Market Monitor is compiled by IHS Global Insight, an economic forecasting firms based in Lexington, Mass.

The forecast for the construction/industrial market is showing 8.4 percent growth in 2013 and 9.8 percent in 2014, while the general tool/do-it-yourself segment is expected to grow 5.8 percent in 2013 and 10 percent in 2014.

A recently released document, the “ARA Equipment Rental Penetration Index,” measures the amount of equipment that is rented as a percentage of total construction equipment. Current levels now indicate that rental represents just more than 50 percent of the construction market. This is more than a 10 percent increase in the last 10 years.
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