News Briefs

Rental industry growth outpacing five-year projections

News Briefs

Interested in Business & Technology ?

Get Business & Technology articles, news and videos right in your inbox! Sign up now.

Business & Technology + Get Alerts

Business for portable restroom operators continues to look up as the American Rental Association recently released its second-quarter revenue projections for 2018. According to a press release, the ARA indicates that growth is already outpacing the five-year forecast released in May with combined industry revenue expected to top $53 billion for 2018. The rental industry has already seen two consecutive quarters of solid growth in 2018, and the trend is expected to continue

“ARA’s second-quarter forecast shows continued strong growth in rental revenues over the forecast period,” says John McClelland, ARA chief economist and vice president of Government Affairs. “Growth rates for 2018 and 2019 look particularly strong in all segments of the equipment and event rental industry with growth rates forecast at more than double the rate of GDP (gross domestic product) growth.”

ARA Rentalytics projects that construction and equipment rental revenue for 2018 will reach $37.15 billion, an 8.3 percent rise from 2017. Meanwhile, party and event rental revenue is expected to rise to $3.4 billion, an 8.8 percent increase. Both revenue streams are expected to continue growing into the future.

However, McClelland cautions that the potential impact of tariffs could negatively affect the industry, leading to loss of inertia in the five-year forecast. 

“Coupled with the increases in equipment prices that are almost inevitable after the imposition of tariffs on steel and aluminum, the equipment and event rental industry could face a challenging economic climate beginning in 2020 and beyond,” McClelland says.

Based in Moline, Illinois, the ARA is a trade association servicing equipment rental businesses and manufacturers and suppliers of construction and industrial, general tool, and party and event rental equipment.



Discussion

Comments on this site are submitted by users and are not endorsed by nor do they reflect the views or opinions of COLE Publishing, Inc. Comments are moderated before being posted.