Continued growth despite challenges: CRA economic forecast

The Canadian Rental Association (CRA) has released its latest quarterly economic forecast for the Canadian equipment rental industry, projecting steady growth amidst economic headwinds in the first quarter of 2024.

Economic Overview

The economic landscape remains mixed, with total consumption serving as the primary driver of real GDP growth in the foreseeable future. While net trade is anticipated to contribute positively to growth this year, consumer pessimism and a softened labor market are tempering household spending. Despite these challenges, investment intentions are expected to pick up in 2025, propelled by monetary policy easing and lower borrowing rates.

The recently introduced 2024 Federal Budget proposes to address the nation’s affordable housing shortage and provide support for consumers struggling with high costs. Notable measures, if the budget is passed, include tax cuts on rental housing projects, initiatives aimed at accelerating homebuilding, and provisions to reduce barriers hindering residential construction.

 Rental Market Summary

The equipment rental industry in Canada is forecasted to grow by 4.6% in 2024, reaching $8.0 billion in revenue. Despite economic slowdowns, the industry is poised for further expansion, with rental revenue expected to increase by 7.1% in 2025.

The construction and industrial equipment rental sector is estimated to grow by 4.6% in 2024, driven by robust activity in non-residential construction and industrial production.

General tool rental revenue is projected to expand by 4.2% in 2024, with growth continuing into 2025. Similarly, tent and event rental revenue is expected to increase by 4.6% in 2024, signaling a gradual recovery from pandemic-related disruptions.

Sheldon Fingler, president of the Canadian Rental Association, commented on the forecast, saying, “As we navigate through economic challenges, the Canadian rental industry remains resilient. Our forecast reflects cautious optimism, with steady growth projected across various rental segments. Despite headwinds, we are confident in the industry’s ability to adapt and thrive in the coming years.”

All CRA members have complimentary access to a quarterly summary update webinar, while detailed quarterly economic forecast data is available through a subscription service by contacting CRA at (905) 643-2333 or info@crarental.org