U.S. equipment rental revenue sees double-digit growth

Double-digit U.S. equipment rental revenue growth is part of latest quarterly forecasts from the American Rental Association (ARA).

Predictions call for 11.1 percent growth, which amounts to nearly $56 billion in 2022 revenue.

Making up a large chunk of that $56 billion is construction equipment, where 13 percent growth this year spells $41.7 billion in revenue. That leap comes after a 10.2 percent increase in 2021.

Revenue of $14.1 billion, a 7 percent year over year jump, is reportedly coming from general tool rentals.

While equipment rental revenue predictions slow to 6 percent growth next year, 2.9 percent in 2024, 3.6 percent in 2025 and 3.9 percent in 2026, the industry is still expected to surpass $65.5 billion by 2026.

“One thing we know is that rental revenues grow when the fleet expands or when rates increase,” said John McClelland, ARA chief economist and vice president for government affairs. “In reality, both things are happening today. However, supply chain issues are inhibiting fleet growth while inflation is pushing rates higher. In the past, we saw a lot of revenue growth that we attributed to fleet growth. Now, we are seeing revenue growth that’s being driven by higher rates.”

ARA forecasts for equipment rental revenue growth in Canada sit at 9.6 percent for 2022, bringing yearly totals to $4.5 billion. Forecasts call for $5.2 billion in revenue by 2026.