Equipment rental companies expected to generate $58.1 billion in revenue in 2020
Forecast up 3.8 percent in United States compared to 2019
Equipment and event rental companies are expected to generate $58.1 billion in revenue in the United States in 2020, up 3.8 percent compared to 2019, according to the latest updated forecast released today by the American Rental Association (ARA).
Construction and industrial equipment rental is forecast to reach $40.1 billion in 2020 with general tool rental revenue accounting for $14.1 billion and party and event revenue expected to be $3.8 billion.
Total U.S. rental revenue is expected to grow by 4.1 percent in 2021, 4.2 percent in 2022 and 3.5 percent in 2023 to reach $65.2 billion.
In Canada, total rental revenue is forecast to top $5.6 billion in 2020, up 2.1 percent compared to 2019. Rental revenue in Canada is expected to grow 2.3 percent in 2021, 3.3 percent in 2022 and 2.7 percent in 2023 to total $6.1 billion.
In addition to rental revenue, there is also an increase in rental penetration over the last two years, ticking up to 55.9 percent in 2018 and 56.7 percent in 2019. ARA defines rental penetration as the percentage of construction equipment currently in use in the U.S. that is owned by equipment rental companies.
ARA and IHS Markit review the ARA Rentalytics program on a regular basis and over the last year, ARA continued to evolve the subscription service by updating the equipment category class reports, adding state economic impact reports, improving the platform interface to speed access to the data subscribers requested and updating the content of webinars that go beyond the numbers with insight related to timely industry topics and issues.