MOLINE, IL—The recent decline in oil prices may reduce demand for equipment rentals in oil drilling regions, but it also means consumers across the nation will have more disposable income and fuel increased activity in the construction sector, according to the latest updated industry forecast from 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 7.9% in 2015 and reach $38.5 billion.
The decline “didn't have a huge impact as other sectors have picked up, such as housing,” Tom Hubbell, an ARA official, tells GlobeSt.com. “Homebuilding still isn't where it should be, but it is way better than it was. We're still a couple of years out until we're back to the old normal.”
The forecast includes all three segments — construction/industrial, general tool, and party and event. The association forecasts that the combined construction and industrial rental revenue will increase 8.2% in 2015 to $25.9 billion.
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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.
