Rental industry expected to rise
Total equipment rental revenue in North America for 2013 is expected to reach $38.0 billion, according to the latest figures released by the American Rental Association (ARA) from its ARA Rental Market Monitor service updated in late October. This figure represents a 6.2% increase over 2012 with fourth-quarter revenue growth projected to be 7.1%.
The figure includes revenue for all three segments of the equipment rental industry — construction/industrial, general tool/DIY and party/special event — in both the United States and Canada combined.
In the United States alone, equipment rental revenue is projected to grow 6.5% in 2013 to reach $33.3 billion.
“The general economy in the U.S. has slowed down slightly this year with the gross domestic product (GDP) now forecast to grow 1.5% in 2013. That means equipment rental industry revenue continues to grow at more than four times the general economy,” said Christine Wehrman, ARA’s executive VP and CEO.
“The industry remains vibrant, strong and will benefit even more in the coming years due to nonresidential growth, supplemented with residential construction growth and the strong influence of the energy boom in North America. We expect revenue in the U.S. to grow 8.4% in 2014 and 11.3% in 2015,” Wehrman said.
According to the late October update, the ARA Rental Market Monitor North American Economic Analysis provided by IHS Global Insight projects revenue growth to accelerate in all segments through 2015 before leveling off in 2016 and 2017. The general tool segment will show the highest compound annual growth rate (CAGR) at 10.1% over the five-year forecast, while construction and industrial equipment revenue is forecast to see a CAGR of 7.8% between 2013 and 2017.
In the United States, the construction market and consumer spending are expected to be the most important drivers of growth of the equipment rental market in 2014. According to the U.S. economic analysis from the ARA Rental Market Monitor and IHS Global Insight, the U.S. equipment rental market is expected to continue its upward trajectory and show strong growth through 2017. Strong growth in residential and commercial construction through 2015 is expected to fuel the construction and industrial equipment segment, which is projected to grow 9.1% in 2014 and 10.5% in 2015.
The U.S. general tool segment is expected to grow 7.9% in 2014 and 15.5% in 2015. The ARA Rental Market Monitor also forecasts party and event rentals to benefit from continued improvement in consumer spending with rental revenue projected to show a 3.2% CAGR over the five-year forecast to 2017.
Overall in the United States, total equipment rental revenue is expected to grow at a CAGR of 8.6% between 2013 and 2017, exceeding pre-recession totals in 2015 and reaching $46.3 billion in 2017.
Restoration Hardware bolsters board with tech exec
Restoration Hardware has appointed Katie Mitic to its board of directors. Mitic, who will also serve on the board’s audit committee, has nearly 20 years of strategic product, marketing and business development experience.
“We are thrilled to have Katie join RH’s board. Her entrepreneurial mindset and digital expertise will be invaluable as we continue to evolve and enhance the ways in which we connect with our customers,” said Gary Friedman, chairman, creator, curator, and co-CEO.
Mitic is currently the co-founder and CEO of Three Koi Labs, a mobile services startup. Previously, she led platform marketing for Facebook, where she is credited with advancing the growth of ground-breaking products for the developers and businesses that engage with Facebook’s community worldwide. Additionally, Mitic has served on the board of directors of eBay for the past two years and on the board of directors of Special Olympics International since May 2011.
“I am excited to be joining an iconic brand in RH that is at the forefront of innovation in retail customer experiences,” said Mitic. “I look forward to working with the team to continue the tremendous business momentum that has already been created and contributing to the long-term success of the Company.”
Prior to joining Facebook, Mitic served as SVP product marketing at Palm, leading hardware and software product management and marketing and corporate development. Previously, she was VP and GM at Yahoo!, managing strategic global communities and communication businesses. She has also served as executive in residence at Kleiner Perkins Caufield & Byers and Elevation Partners. She began her career in the mergers and acquisitions group at Credit Suisse First Boston, before going on to become the product leader in a number of successful startups including Four11 (acquired by Yahoo!) and NetDynamics (acquired by Sun Microsystems).