14 August 2015, 14:23
Construction and industrial equipment rental revenue in the United States should grow 7.6 percent in 2015, the American Rental Association said in its latest quarterly forecast.
The estimate is down from 8.2 percent in the previous ARA quarterly forecast.
General tool rental revenue should increase to 7.5 percent — down from 7.9 percent in the previous quarter.
Party event rental revenue is now projected to grow 4 percent instead of 4.7 percent, the ARA said.
Overall, equipment rental revenue is now forecast to increase 7.3 percent in 2015, 7.8 percent in 2016, 7.3 percent in 2017, 7.4 percent in 2018 and 6.5 percent in 2019, according to the ARA’s five-year forecast.
The ARA said its latest forecast has been slightly modified, compared with the first quarter forecast, to reflect rapid changes in market conditions, the economic dip related to harsh weather earlier this year and the volatility in the energy markets.
IHS Inc., an economic forecasting company that compiles data for the ARA, said U.S. expansion is back on track as growth resumed in the second quarter, led by a pickup in consumer spending but tempered by a slowing in inventory investment.
IHS also said consumer spending is supported by employment gains, real disposable income and asset values. Housing markets should steadily recover in response to rising employment, easing credit standards and pent-up demand, IHS said.
“In general, we are seeing positive forces favoring the equipment rental industry that outweigh any negative market forces,” said Christine Wehrman, ARA’s executive vice president and chief executive officer. “That leads to rental companies showing more confidence and increasing investments in fleets that will support the growth of the industry.”