MOLINE, IL—With employment growing and gas prices sinking to levels not seen in years, more people in the US have disposable income, and this means the equipment rental industry will have a prosperous 2015, according to a new study just published by the American Rental Association. In its latest ARA Rental Market Monitor, the Moline, IL-based trade group forecasts that the industry will see total revenue growth of 8.1% in 2015 to reach $38.5 billion.
The forecast includes all three segments — construction/industrial, general tool, and party and event. And the association forecasts that the combined construction and industrial rental revenue will increase 8.5% in 2015 to $26 billion.
“The equipment rental industry continues to grow at a fast pace with strong equipment rental demand within all markets,” says Christine Wehrman, ARA's executive vice president and chief executive officer. “While the news focuses on the energy sector of the economy, our industry is fortunate to have a balanced marketplace in which rental is in demand and energy represents only one of those markets.”
Furthermore, the recent drop in oil prices does not mean the energy sector growth stops. “Natural gas and oil extraction growth will likely be slower in 2015 and 2016, but it is important to note that extraction actually increases, just at a slower rate, even with lower oil prices,” says Scott Hazelton, managing partner, IHS Inc., the company that compiles data for the forecast. “The number of positive offsets in commercial construction, multifamily housing, healthcare and manufacturing help to counteract the drop in oil prices and contribute to the strong 2015 growth projections.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
