A strong construction market, particularly residential construction, is a key variable in the positive forecast released Monday by the equipment rental industry.
The equipment rental industry in the United States continues to outpace gross domestic product (GDP) in the United States by four times in 2013, according to American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor.
Revenues will reach $33.5 billion in revenue, representing a 7.0% increase over 2012 with revenue growth reaching 7.8% in the fourth quarter, according to the latest quarterly forecast updated July 29, 2013.
Economic data and analysis for ARA’s Rental Market Monitor is compiled by IHS Global Insight, an economic forecasting firm based in Lexington, Mass.
In the United States, the construction market and consumer spending continue to be the most important drivers of growth of the equipment rental market in 2013.
“Though real nonresidential construction is forecast to decline 0.8%, real residential construction is expected to grow 8.2%, yielding an overall real construction growth rate of 2.6% in 2013,” according to the U.S. economic analysis from the ARA Rental Market Monitor. “Real consumer spending is projected to increase 1.9% in 2013, with spending on recreational services forecast to grow 1.3%. These improvements will translate into increased revenue in all segments of the equipment rental market.”
The construction and industrial equipment segment is forecast to grow 8.1% in 2013, while general tool segment revenue is expected to increase 5.4% over 2012. Party and event rental revenue is forecast to increase 2.4%. The second quarter of 2013 is projected to be the slowest for the overall rental equipment market compared with 2012, but quarter-on-quarter growth is forecast to pick up in the final two quarters of the year.