The latest information from economic forecasting firm IHS Global Insight, prepared for the American Rental Association in Moline, Ill., reports that the equipment rental industry is starting to show signs of recovery from the national recession.
“The outlook report indicates that the worst may be over for the equipment rental industry,” says Christine Wehrman, CEO, ARA. “The U.S. economy is proving its resilience with growth returning to many sectors.
“However, construction spending continues to lag behind the rest of the economy. While construction spending is weak, spending on rentals is beginning to grow and is leading the way in the construction space. We see the equipment rental industry gaining momentum in 2010 and 2011, with significant growth moving into 2012.”
The equipment rental industry is made up of three general market segments: Construction & Industrial Equipment, General Tool and Party & Event. Influenced by the decline in both residential and nonresidential construction spending, the Construction & Industrial Equipment market has been hit hardest by the recession.
Economic indicators show that employment in the construction industry has increased significantly with the onset of the 2010 construction season.
“This is a positive sign for the equipment rental market as cautious contractors will increase their equipment fleets through short-term and long-term rentals to keep employees productive,” says Wehrman.