ARA revises rental forecast for Canada
Aug. 9, 2016 - The biggest change to the American Rental Association’s July forecast concerns Canada. Instead of projecting a decrease in total rental revenues in 2016 as it did in April, the ARA Rental Market Monitor now forecasts a 0.8 percent increase to $4.976 billion and total rental revenue in Canada is expected to grow at a compound annual growth rate of 4.2 percent over the 2016 to 2020 period.
While construction spending in Canada has been weak in 2016, resulting in the near flat equipment rental revenues, real residential and nonresidential construction are expected to rebound in 2017 and beyond, leading to a more positive forecast with equipment rental revenue in Canada expected to reach $5.859 billion in 2020.
The latest five-year forecast for the equipment rental industry released by the American Rental Association (ARA) projects a compound annual growth rate in revenue of 4.9 percent to reach $57.3 billion in the United States in 2020.
The numbers in the forecast, updated at the end of July, are slightly modified compared to ARA’s quarterly forecast in late April, reflecting changes in the marketplace. ARA now projects industry revenue to increase by 4.9 percent in 2016 to a record $47.6 billion and to grow another 4.6 percent in 2017 to reach $49.8 billion.
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