Equipment and tool rental could see 11% growth this year
Construction equipment rental is expected to see 13% growth this year to total $41.7 billion in revenue.
U.S. equipment rental revenue, including both construction and general tool, is expected to grow by 11.1% to reach nearly $56 billion in 2022, according to the latest quarterly forecast released by the American Rental Association (ARA).
Construction equipment rental is leading the way, with 13% growth this year to total $41.7 billion in revenue following a 10.2% increase in 2021.
General tool rental in 2022 is expected to grow 7% to reach $14.1 billion, the association said.
The ARA has also forecasted equipment rental revenue to slow to 6% growth in 2023, 2.9% in 2024, 3.6% in 2025, and 3.9% in 2026. The industry is still expected to surpass $60 billion in 2024 and is forecast to reach $65.5 billion in 2026, however.
“One thing we know is that rental revenues grow when the fleet expands or when rates increase,” said John McClelland, ARA vice president for government affairs and chief economist.
“In reality, both things are happening today. However, supply chain issues are inhibiting fleet growth while inflation is pushing rates higher,” McClelland noted. “In the past we saw a lot of revenue growth that we attributed to fleet growth. Now we are seeing revenue growth that is being driven by higher rates.”
The revenue forecast for Canada calls for 9.6% growth in 2022 and reaching $4.5 billion followed by increases of 6.4% in 2023, 3.8% in 2024, 2.1 in % 2025 and 1.8% in 2026 to $5.2 billion.
ARA membership includes more than 11,000 rental businesses and more than 1,000 manufacturers and suppliers.