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Report: Equipment rental revenue, investments expected to rise

By |  October 19, 2021

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A third-quarter forecast of equipment rental revenue conducted by the American Rental Association (ARA) shows revenue is expected to exceed $47.6 billion this year, a 3 percent increase over 2020.

The forecast is comprised of the construction/industrial and general tool segments, ARA says.

While the $47.6 billion is slightly down from ARA’s second-quarter forecast, 2022 revenue is now expected to grow at a 9.9 percent pace and reach $52.4 billion. Should that happen, ARA says the mark would be a record for the equipment rental industry and surpass the $50.9 billion recorded in 2019.

The ARA forecast also calls for 5.5 percent revenue growth in 2023, 2.5 percent growth in 2024 and 3.3 percent growth in 2025.

According to ARA, construction equipment rental revenue leads the way for 2022 with a 12.3 percent expected increase. The general tool segment is forecasted to grow 3.7 percent next year. The forecast does not include the possible positive impact of the Infrastructure Investment & Jobs Act passing, ARA says.

Additional insights

In 2020, ARA says equipment rental companies significantly cut investments in equipment because of the pandemic. Those in the construction and general tool segments spent 44.4 percent less last year, dropping investments in equipment to $7.64 billion.

The ARA forecast, however, shows that investment in 2021 should grow by 36.2 percent to $10.4 billion, followed by another 36 percent increase in 2022. Beyond that, ARA projects investment increases of 10.9 percent in 2023, 2.3 percent in 2024 and 3.8 percent in 2025.

In Canada, equipment rental revenue is following a similar trend. According to ARA, construction and general tool rental revenue combined is expected to grow 18.9 percent in 2021 to reach $4.24 billion, topping the previous record of $4.04 billion in 2018.

Jack Kopanski

About the Author:

Jack Kopanski is the Managing Editor for Pit & Quarry and Portable Plants. Kopanski can be reached at 216-706-3756 or jkopanski@northcoastmedia.net.

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