Rental industry expects growth
The equipment rental industry in the United States is expected to generate $33.6 billion in revenue in 2013, according to the American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor.
This figure represents a 7.3% increase over 2012, with revenue growth reaching 7.9% in the fourth quarter, according to the latest quarterly forecast.
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 2013. “The U.S. equipment rental market is expected to continue its upward trajectory and show significant growth through 2017. Strong growth in real residential construction through 2015 will fuel the construction and industrial equipment segment,” reads the analysis from the Rental Market Monitor.
Projections call for 9.8% growth in 2014 and 11.8% growth in 2015.
In Canada, the equipment rental industry is forecast to generate nearly $4.6 billion in revenue in 2013, a 3.1% increase. In total for North America, equipment rental revenues in 2013 are expected to reach $38.2 billion.
By the end of the current five-year forecast in 2017, North American equipment rental revenue is expected to surpass $50 billion to reach $51.6 billion, with U.S. rental revenue at $46.3 billion and rental revenue in Canada at $5.3 billion.
“Rental has grown during the anemic economic recovery through increased penetration. As industrial and construction markets continue to improve, rental will see further growth from a larger share of the equipment market, leading to double-digit revenue gains by 2014,” said Scott Hazelton, a senior partner with IHS Global insight, which compiles data and analyses for the ARA Rental Market Monitor.
The ARA Rental Market Monitor is a subscription-based service for American Rental Association (ARA) members provided by ARA and Rental Management as part of a partnership with ISH Global Insight, one of the world’s most respected economic forecasting firms based in Lexington, Mass.
Web promotes higher spending for floor care
Floor care, water filtration devices and air purifiers generate higher average prices online than in brick-and-mortar stores, according to research from NPD Group.
The research company’s Consumer Tracking Service, looking back at the 12 months ended March 2013, found that consumers are spending significantly more for these home environment cleaning appliances purchased online.
In floor care, the average online selling price for the period was $140, compared with $97 in stores. (See chart.) Online dollar sales also gained a larger share of consumer spend — up 16% for floor care, and up 27% for water filtration devices.
“The success of the online channel is a result of broader product selection, a wider range of price points and the convenient platform to research and compare product features,” said Debra Mednick, executive director and home industry analyst. “Layering on the incentive of free shipping (often with a minimum shopping cart), increases the likelihood that consumers are willing to trade up, thus, spending more on their purchase.”