MOLINE, IL—As reported yesterday in GlobeSt.com, panelists at the recent Mortgage Bankers Association’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo said that construction lending has increased to levels not seen in decades. And in another sign of a US economic rebound, construction and industrial equipment rentals have also soared, according to data just published in the American Rental Association’s ARA Rental Market Monitor™.
The Moline, IL-based trade association said overall North American rentals totaled $38 billion last year, with US renters of construction and industrial equipment accounting for $22.3 billion, a year-over-year growth rate in that sector of 7.3%. The association projects that overall North American rental revenues will hit $41.1 billion in 2014 and surpass $52 billion by 2017.
“These numbers suggest that the economic recovery in the construction and industrial equipment market continues at a strong pace,” says Scott Hazelton, director of consulting for IHS, an economic forecasting firm. The Englewood, CO-based IHS compiles data for the ARA Rental Market Monitor™ service. “The stronger growth in this segment is also evidence of the secular shift we have seen in recent years that results in more rental and fewer equipment purchases by contractors and industrial customers.”
The forecast predicts that US revenues will grow at rates above 7% through 2017 with growth especially strong in the construction and industrial equipment sector, which should see its year-over-year growth peak at 11.1% in 2015.
“Overall, 2013 was another good year for the equipment rental industry as it continues to far outpace the general economy,” Hazelton adds. “We continue to see the equipment rental industry as a leader in the economic recovery over the next 5 years.”