ARA Releases Optimistic Industry Forecast
According to research released at The Rental Show in Orlando, Fla., by the American Rental Association (ARA), 2006 is expected to bring continued growth for the equipment rental industry.
The ARA “2005 State of the Equipment Rental Industry” report states that the total U.S. rental market across the construction and industrial equipment, general tool, and party/event segments reached an estimated $31.1 billion in revenue. More than 70% of that revenue was generated by the construction and industrial equipment segment, which had revenues of $21.9 billion.
“The outlook for the U.S. rental industry for the remainder of 2006 and through 2007 is optimistic across all segments,” said Christine Wehrman, ARA CEO. The primary drivers of rental activity • residential and nonresidential construction investment, corporate profits, disposable income and home improvement spending • have been exceptionally strong relative to general economic growth.
Wehrman cited research indications are for total U.S. industry revenue to grow at 6% in 2006 and just under 5% in 2007, resulting in a U.S. market size of approximately $34.6 billion by 2007. This growth outpaces total gross domestic product (GDP) growth (generally around 3%), indicating real gains to the rental channel and an increasingly greater contribution by the rental industry to national GDP.