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ARA predicts 8.2 per cent growth in North America

Aug. 21, 2012 - The forecast for the equipment rental industry remains bright according to the latest data released by the American Rental Association, despite a slowdown in overall economic growth in the second quarter of 2012. The ARA anticipates North American equipment rental industry revenue to increase by 8.2 per cent in 2012 to reach $34 billion by year end. The growth is fueled by a strong revenue growth projection of nine per cent in the construction and industrial equipment segment to $22.7 billion and eight per cent in the general tool segment to $8.7 billion. The party and event segment is expected to grow 3.1 per cent in 2012 to reach $2.6 billion in revenue.


August 21, 2012
By American Rental Association

Aug. 21, 2012 – The forecast for the equipment rental industry remains
bright according to the latest data released by the American Rental
Association
, despite a slowdown in overall economic growth in the second
quarter of 2012. The ARA anticipates North American equipment rental
industry revenue to increase by 8.2 per cent in 2012 to reach $34
billion by year end. The growth is fueled by a strong revenue growth
projection of nine per cent in the construction and industrial equipment
segment to $22.7 billion and eight per cent in the general tool segment
to $8.7 billion. The party and event segment is expected to grow 3.1
per cent in 2012 to reach $2.6 billion in revenue.

The projections are based on the industry’s recently updated quarterly
figures by IHS Global Insight , an economic forecasting firm and a
partner with ARA in providing data and analyses for the ARA Rental
Market Monitor subscription service for association members.

Economic growth expectations are consistent with the prior quarter and
remain bullish.  The industry continues to outperform the U.S. economy
at a rate more than four times that of GDP. 

The ARA Rental Market Monitor current five-year forecast calls for
steady, high single-digit growth in 2013 with double-digit revenue
growth for the equipment rental industry in 2014, 2015 and 2016 to reach
total North American rental revenue of $51.7 billion in 2016.

Also signaling a growth trend for the industry is the rate of investment
in equipment, now projected by ARA to reach $9.85 billion in 2012, up
more than 15 per cent over 2011. This means investment in equipment as a
percentage of sales is forecasted to be 31.7 per cent this year. The
percentage increase in equipment investment is expected to be even
greater over the next three years.

“The equipment rental industry continues to be a leader in recovery of
our economy. The growth rate we’re seeing over 2011 is substantial,
further demonstrating the significant value proposition that renting
equipment has to offer,” says Christine Wehrman, ARA’s executive
vice-president and CEO.

Related links
www.ararental.org