Equipment rental is in demand
The equipment rental industry revenue forecast for the next five years continues to paint a very positive picture for the future in the United States, with growth rates exceeding 7% through at least 2018, according to the latest projections released by the American Rental Association (ARA).
The U.S. industry also remains on track to reach record revenue of $38.3 billion in 2015, according to the forecast.
“The equipment rental industry continues on an upward trajectory and is expected to show significantly strong growth through 2019, said Christine Wehrman, ARA’s executive VP and CEO. “Some specific market conditions may change, but rental companies are agile and can adapt their inventory and fleet to fit what the market demands,”
The recently updated ARA Rental Market Monitor five-year forecast remains strong, despite slower demand for rental equipment from the mining, oil and gas sector, as commercial and residential construction spending have started to pick up steam this year and are expected to grow faster over the next few years.
Overall, total equipment rental revenue in 2015 for the U.S. is expected to grow 7.3% with growth of 7.8% in 2016, 7.3% in 2017, 7.4% in 2018 and 6.5% in 2019 to reach $50.6 billion.
In Canada, equipment rental revenue is forecast to increase 2.6% in 2015 to reach $4.04 billion. The growth rate is projected to increase 3.1% in 2016, 3.9% in 2017, 6.4% in 2018 and 4.5% in 2019 to reach $4.83 billion.
For North America, with the U.S. and Canada combined, total equipment rental revenue is forecast to be $43.3 billion in 2015, up 6.8%, reaching $56.6 billion in 2019.
Market Recap: RISI Crow’s Construction Materials Cost Index
A price index of lumber and panels used in actual construction for Aug. 7, 2015
*Western – regional species perimeter foundation; Southern – regional species slab construction.
Crow's Market Recap — A condensed recap of the market conditions for the major North American softwood lumber and panel products as reported in Crow's Weekly Market Report.
Lumber: A sense in the SPF market that buyers were ready to cover some needs began on Tuesday before fully taking place Wednesday. Wholesalers covered shorts. Prices firmed as mills accumulated more of an order file. Gains in futures added a little more confidence to the cash market. Continued price weakness in the Southern Pine market compelled buyers to purchase conservatively when covering needs. This left most dimension prices in a position of weakness, as buyers frequently reported the ability to pick off any dimension other than 2×6 at a discount. Coastal species prices declined throughout the week as competition to sell production increased. Traders reported plenty of competition coming from Canadian producers. Market conditions have not improved for Inland dimension lumber, so prices remain soft and falling off yet again. The key conditions include critically heavy volumes of imports from Canada, forced into the US market by export declines for Canadian shippers. Decent demand and the threat of log shortages helped buoy some stud prices, while others remained adrift. Weakness in 9’ was most prominent. Radiata Pine lumber is tight in Mldg&Btr, with some potential buyers saying they cannot obtain their needs. Prices are strongest on the high side of the grading scale for Ponderosa Pine, but recent reports confirm that even #2 Shop shows some pricing cracks, and Mldg&Btr is more than amply produced. ESLP boards are holding their values a little better than Ponderosa Pine, and Eastern White Pine boards are moving at a decent pace with unchanged prices. The drop in export taxes in August led to “a busier week of shipping” for Canadian Western Red Cedar mills looking to move orders taken in July to US customers. A few producers noted improved sales, but overall, the market moved at a late-summer pace. This contributed to stagnant pricing.
Panels: OSB markets came to life this week across most of North America, showing at least a mild pulse after nearly flat-lining. While retail activity saw little change from recent weeks, a major producer made some gyrations, including going off the market and suggesting serious curtailments throughout its system. Southern Pine plywood supplies continued to outpace demand, leaving prices once again susceptible to downward moves. Searching for a remedy for the market’s decay, traders have narrowed options in the market to one — cutbacks in production. Improved demand in the latter half of the week allowed Western Fir plywood producers to firm prices and move their order files at least into the week of August 17. Markets for Canadian plywood remained a bit quiet on the mill side this week, while warehouse activity was reported steady. Most contacts felt the current number is holding but a bit stale with possible downside. Although particleboard sales remain strongest in the South and East regions of the US, producers in the West also seem content with the volumes they are selling at this time of the year. MDF sales remained solid, particularly in the West.
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