February 20, 2008 • The American Rental Association (ARA) released the key findings of its new 2007 State of the Equipment Rental Industry study last week at The Rental Show and announced the publication of the new report, which includes comprehensive data on the North American rental industry, according to the Feb. 17 edition of RentalPulse, ARA and Rental Management magazine's e-newsletter.
This is the third year that ARA and Global Insight, a leading economic forecasting firm, have teamed up to produce the research document. The 2007 State of the Equipment Rental Industry report includes updated revenue estimates for 2006 and 2007, as well as a 5-year forecast to 2012.
“The North American equipment rental industry is the largest in the world, generating $42.3 billion in combined 2007 rental revenues in the USA and Canada and is a significant contributor to the gross national product of both countries,” said Christine Wehrman, ARA's executive vice president and CEO. “The report defines the equipment rental industry and continues to show that ARA is determined to ensure that our annual forecasts and review of this industry are comprehensive and well documented. It serves as the industry's benchmark for measuring the growth and development of the equipment rental industry in North America and is made available to all that have interests in the industry.”
Highlights of the key findings in the 2007 report include:
- The total size of the North American rental market was $42.3 billion in 2007, including $36.5 billion in the United States and $5.8 billion in Canada.
- Global Insight forecasts a strong industry outlook and has projected North American rental revenues to exceed $52 billion in 2012.
- The U.S. rental market continues to grow substantially and since 1998 has had a compound annual growth rate of 7.9 percent, significantly outpacing overall economic activity.
- Continued growth is expected in the U.S., but at a slower compound rate of 4.1 percent in the years 2007-2012.
- U.S. construction and industrial equipment revenue was more than $25.5 billion for 2007.
- General tool rental has been the fastest growing U.S. market segment during the past decade, with 11.6 percent compound annual growth from 1998 to 2007. It accounted for $8.5 billion in rental revenue in 2007.
- Canada shows the strongest growth during this period particularly in the Western provinces. The construction and industrial equipment rental category makes up the largest share of the Canadian market with $4.3 billion in rental revenue in 2007.
- Canada's general tool sector produced $1.4 billion in revenues in 2007.
The 2007 report includes more than 160 pages of statistical information for the three industry sectors of the equipment rental market • construction and industrial, general tool and party and event • for both the U.S. and Canadian markets. The report includes an industry overview, key findings, market size for United States and Canada, a 5-year forecast, an investment outlook, regional analysis, market penetration for construction and industrial segments only, pricing power and market dynamics, competitive trends and composition of the marketplace with individual review of the three industry segments.
The full report, commissioned by ARA and Rental Management, is available to ARA members for $695 and to prospective and nonmembers for $2,995. To order call ARA Member Services at (800) 334-2177.
Source: http://www.rentalpulse.com/
