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.

“Those in the rental industry have learned how to thrive in different economies and customers continue to learn that renting equipment is a smart move as market conditions today can change rapidly,” says Christine Wehrman, ARA's executive vice president and chief executive officer.

“Even as several forces, including harsh weather, held back US economic growth in gross domestic product to 0.2% in the first quarter, total rental revenue was up 4.9% in the same time period and is expected to exceed 9% in the second half of the year,” Wehrman adds.

“The majority of the growth has come from solid fundamentals,” says Scott Hazelton, managing director, IHS Economics and Country Risk, the global forecasting firm that compiles data for the rental market monitor. “Given a current level of activity based on solid ground, an economy that continues to improve will lead to rental revenues that are achievable and lasting.”