Rouse: Rental Giants' 2011 Equipment Spending Rose to 62% of 2006 High

Capital expenditures of rental assets by major North American rental firms Q1 and Q2 2011 were 293% of capital expenditures in Q1 and Q2 2010.

According to Rouse Asset Services, capital expenditures (capex) on rental assets by major North American rental firms in the first half of 2011 were 293% of capital expenditures January through June of 2010.

For the 12 months ending June 30, 2011, capital expenditures on rental assets by major North American rental firms were 318% of capital expenditures in the 12 months ending June 30, 2010.

Total capex rebounded from prior years' lows to 61.6% of 2006 acquisition levels, Rouse reports in its July Construction Rental Report.

Comparing rental asset purchases for Q1 and Q2 of each year, 2006 represented the recent high capex; 2007 levels were 74.9% of the high; 2008 spending was 45.2% of that level; 2009 purchases dipped to 9.8% of the high; and 2010 rose slightly to 21.0%. For rental asset capital expenditures over the full years, 2006 levels represented the cycle high, 2007 purchases were 86.3% of the high, 2008 purchases were 45.2% of the high, 2009 levels were 12.0%, and 2010 purchases were 35.1% of the maximum.

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