The U.S. rental industry, particularly in the sector of Mobile Elevating Work Platforms (MEWPs), has witnessed healthy growth in recent years, as revealed by insights gathered by the International Powered Access Federation (IPAF) in collaboration with the Global Consulting and M&A Firm, Ducker Carlisle, in the 2024 IPAF Rental Market Report—which assesses MEWP rental markets in the U.S. and around the world.
In 2023, the industry soared with a remarkable 10% rise in MEWP rental revenue compared to the previous year. This substantial growth was driven by a series of positive indicators, marking it as a standout year for the sector. Key among these indicators was the sustained high level of utilization, averaging at an impressive 73%. Such strong demand necessitated an expansion of the fleet to meet customer requirements, with estimates indicating an 8% growth to around 855,000 units.
Moreover, the value of fleet investments increased by 13% in 2023, reflecting the industry's confidence and commitment to meet escalating demands. However, amidst this growth, inflation loomed, prompting a 4.5% increase in rental rates when averaged across the 50 states. Despite this, the industry remained resilient, sustained by high demand.
Now in 2024, the U.S. rental industry remains poised for continued expansion, albeit at a slightly tempered pace. Projections indicate that MEWP rental revenue is set to grow by an impressive 10%, propelled by a 5% increase in fleet size and an anticipated 4% rise in rental rates. Importantly, the high utilization rates that facilitated the sector's success in 2023 are expected to remain stable, further bolstering revenue growth.
Furthermore, companies within the industry are committed to maintaining their current level of investment, with a projected 4% increase expected in 2024. This steadfast commitment underscores the confidence in the sector's trajectory and its ability to navigate potential challenges on the horizon.
In conclusion, the U.S. rental industry, particularly in the MEWP sector, has experienced a period of remarkable growth and prosperity. The stellar performance witnessed in 2023 is set to continue into 2024, albeit with a slightly moderated pace. As companies gear up to meet evolving customer demands and market dynamics, the future appears bright for this vital segment of the economy, underscoring its resilience and adaptability in the face of changing circumstances.
For in-depth analysis of rental markets across the globe, the 2024 IPAF Rental Market Reports are available now. IPAF manufacturer, supplier, distributor and rental company members can apply for a free copy of the relevant report by filling in the form at www.ipaf.org/reports; non-members are able to purchase the report.