American Rental Association (ARA) equipment rental store owners and managers as well as product suppliers to the industry remain optimistic about growth in 2012.
Nearly 80 percent of those responding to the July 2012 ARA Economic Survey of rental store members project an increase in rental revenue this year over 2011, with 44 percent expecting double-digit growth. More than 91 percent expect rental revenues to at least equal those of 2011.
The positive outlook translates to positive projections for new equipment purchases. Nearly 90 percent of the respondents expect to buy at least as much new rental equipment as they did in 2011, with 38 percent forecasting a double-digit increase.
More than 82 percent of ARA equipment manufacturers and suppliers responding to a separate survey said they project additional sales growth into the rental channel in 2012 over 2011. More than 55 percent expect double-digit growth and 100 percent expect to at least match 2011 sales.
The enthusiasm and positive outlook for the rental market is reflected in preliminary numbers for The Rental Show 2013. As ARA prepares for Las Vegas in February, floor space is being sold at a record pace and is nearly 100 percent sold.
The ARA Rental Market Monitor™, using second quarter 2012 data compiled by respected forecasting firm IHS Global Insight, forecasts total rental revenue in the U.S. and Canada to increase 8.2 percent in 2012 which is more than four times the growth rate of the gross domestic product (GDP), significantly outpacing the rest of the economy.
“It’s encouraging to see the industry continue the momentum of these positive economic trends that have emerged over the last several quarters,” says Christine Wehrman, ARA’s executive vice president and CEO.
“The equipment rental industry continues to show strong economic growth, indicating that equipment rental has strengthened its position as a preferred choice over purchase or lease for customers,” she says.
The ARA economic surveys reflect a snapshot in time of those who responded and may not be representative of the industry as a whole. However, rental companies and suppliers/manufacturers can benchmark their businesses against these results.