MOLINE, IL—The unusually cold weather over the past few months may have squelched first-quarter GDP growth in the US, but total equipment rental revenue growth in North America made a 6% gain in the first quarter of 2014, according to data just published in the American Rental Association's ARA Rental Market Monitor™.

The solid numbers for the quarter continues what had been a strong year in the sector. 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%. And the association projects that overall North American rental revenues will grow 7.5% and hit $40.8 billion in 2014 and 10.4% in 2015 to reach $45 billion.

“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,” said 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 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 11.0% in 2015.

“Overall, 2013 was another good year for the equipment rental industry as it continues to far outpace the general economy,” Hazelton added. “We continue to see the equipment rental industry as a leader in the economic recovery over the next 5 years.”

Instant Insights /

Construction Equipment Rentals to Boom

Related Stories

Recommended For You