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The U.S. equipment rental industry could reach $79.2 billion this year, according to the latest projections from the American Rental Association (ARA).
In its updated forecast, the Association said the growth projection for the US equipment rental industry has increased since last quarter, with most current forecasts pointing to a 9.7% increase.
This represents a 2.8% increase from previous estimates, which predicted a total of $77.3 billion.
Tom Doyle, ARA’s vice president of program development, said: ARA’s 2024 forecast through our exclusive rental income model and member survey results confirms the continuation of a growing rental industry.
Scott Hazelton, managing director, S&P Global. added, There was no serious bust, so there is no serious boom. The outlook remains stable and inflation is falling. Growth rates will moderate in the coming years, with growth of 3.8% in 2025 and 3.1% in 2026.
According to Jeff Vance, senior vice president of operating services, Sunstate Equipment, S&P’s forecasts are in line with his own, which predicts a milder-than-usual winter and spring and softening used equipment prices.
Elsewhere, Canada’s equipment rental revenue is forecast to grow 7.2% this year, reaching $5.79 billion.
General vehicles and construction and industrial equipment (CIE) are expected to see growth, with total vehicle revenue forecast to rise 6.8% to $1.08 billion, from last quarter’s forecast of $954 million.
Total asset income is projected to grow 9.7% this year to $16.6 billion, and investment is expected to expand in 2024 and beyond.
Investment in general assets is projected to increase by 7.3% with growth in 2025 to 7.9% and in 2026 to 6.4%.
Darryl Cooper, president, Cooper Equipment Rentals, said: Our experience mirrors what ARA is reporting. Despite headwinds in the housing market, incomes are up, with western Canada stronger than eastern Canada.
In terms of supply chain, Sunstate said there has been a release, with the fleet and parts easier to maintain.
In addition, Vance said new vendors have entered the market with new technology; We were doing a lot of research on electrification, he says. The power grid is always a topic on our minds. But more electrification is coming, so we have to be prepared to serve our customers in those ways.
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