Equipment rental revenue grew 13.5 percent in 2022, compared to the previous year, and is expected to grow 5.3 percent in 2023. That according to the American Rental Association (ARA) first quarter forecast. In 2022, $56.1 billion was spent on equipment rental, according to the group, which also forecast 2024 growth of 1.9 percent.
Despite a slowdown, ARA cited positivity among its members with large and small operations.
“In speaking with rental companies across the United States and Canada, despite some unprecedented headwinds, their businesses are strong,” said Tom Doyle, VP of program development, in a prepared statement. “It’s generally a great time to be in rental.”
In its third annual construction equipment survey, ARA reported fleet growth in all 30 product groups. Rental companies in North America that responded are estimating a 58 percent increase in new equipment purchases. Of those respondents, 79 percent said their orders included mobile elevating work platforms (MEWPs) and 59 percent said their orders included earthmoving equipment.
Growth will also slow in the U.S. for general tool rental revenue in 2023. This will be driven by weakness in the construction markets, especially residential. Year-over-year growth in 2022 was 6.5 percent. In 2023, 2.8 percent growth is estimated and in 2024 growth is estimated at 2.9 percent.
“The outlook for equipment rental continues to be positive,” said John McClelland, VP for government affairs and chief economist. “With significant funding for infrastructure coming in 2023, the demand for equipment will continue to grow. In addition, more funding is coming from the Inflation Reduction Act as we begin to build out the electricity infrastructure for both vehicles and equipment.”
Source: ARA
