American Rental Association (ARA) equipment rental store owners and managers, as well as product suppliers to the industry, continue to show optimism for growth for 2014.
In the July ARA Economic Survey, more than 84 percent of those responding expect rental revenue to increase in 2014 over 2013, with 49 percent of respondents anticipating double-digit growth. Overall, more than 92 percent of survey respondents expect annual rental revenue to at least equal 2013 revenue.
This anticipated revenue growth means respondents are adding to their rental inventory to meet demand. Nearly 90 percent of survey respondents plan for equipment purchases to be equal to or more than purchasing activity in 2013. Nearly 39 percent of respondents plan for double-digit growth in spending on new equipment.
In a separate survey, also conducted in July, nearly 85 percent of surveyed ARA associate member/equipment manufacturers said they expect increased sales into the rental channel in 2014 over 2013 with more than 53 percent forecasting double-digit growth.
The ARA economic surveys reflect a snapshot in time of those who responded and may not be representative of the industry as a whole. A true market indicator to use for benchmarking your business is available through ARA Rental Market Monitor. This resource features reports, data and analyses from IHS Global Insight, the respected forecasting firm. According to IHS, strong growth is projected for the equipment rental industry in 2014 and beyond.