North American Equipment Rental Business Poised for Significant Growth: New Local Business Planning Tools Now Available From ARA

(This is the first of a series of blog articles that will appear here frequently.  All the blog articles will focus on ways to improve rental operators’ profitability.  All the ideas are based upon the proven experience of our most profitable rental operators.  Return here often for additional proven business enhancing ideas.  We welcome your comments)

According to IHS Global Insight, the world’s leading economic forecasting authority, the North American Equipment Rental Business is expected to see a steep increase in revenues over the next few years.  After bottoming out at about $30 billion this year, revenues are expected to exceed $42 billion by 2014.

Looking at just the United States, according to IHS Global Insights latest forecasts (May 21, 2010), Total Equipment Rental Revenue will grow 4.6% in 2011 and 46.1% by 2014.  Growth of the major rental revenue sectors are forecast as follows:

• Construction and Industrial Equipment Rental revenue will grow 5.0% in 2011 and 51.5% by 2014.

• General Tool Rental revenue will grow 3.6% in 2011 and 44.0% by 2014

• Party & Event Rental revenue will grow 4.1% in 2011 and 12.9% by 2014

Local Metro Area Data now inexpensively available through the ARA.  

Alert Management Systems recommends that rental store owners purchase this New local market data through the American Rental Association (ARA).     

Alert Management Systems believes this local data, which is updated and provided online each quarter, is critical for putting together realistic business plans for 2011 and beyond. After all, it is impossible to set realistic goals without knowing the environment in which a company competes.  For each Metro area, the following data is provided for 2007-2014:

• Construction and Industrial Equipment Rental Revenue
• General Tool Rental Revenue
• Party & Event Rental Revenue
• Total Rental Revenue
• Real Gross Metro Product
• Real Total Construction Revenue
• Residential Construction Revenue
• Non-residential Construction Revenue
• Total Retail Sales
• Population Ages 25-54 and 55-64
• Total Employment
• Construction Natural Resources and Mining Employment
• Manufacturing Employment

For $100 per year ARA members can purchase the national data.  The cost for your first local metro area is an additional $50 which includes all three segments.  Additional metro areas can be added for $50 for one rental segment, $75 for two or $100 for all three. Additional discounts apply when multiple metro areas are purchased.

This information is available through ARA’s State of the Equipment Rental Industry Outlook 2009-2014 online Market Monitor, compiled by IHS Global Insight.  For more information, go to www.ARArental.org/go/research or call ARA at 800-334-2177, ext 282.
Next Subject: “How to Use the ARA’s Cost of Doing Business Report to Increase Profitability.”  Also included will be how to obtain this important Report at NO cost to you.

Purpose of Our Blog – What’s In It For YOU!

I joined the Alert Management Systems team eight years ago.  Since then it has been my pleasure to work with a great many of the largest and most profitable independent rental operations owners in the Event/Party, General Tool, Heavy Construction and specialized Rental Categories – throughout the US and in four other countries.

Based upon my prior marketing and profitability management experience together with numerous one-on-one and group meetings with many of our clients and all the Alert team members I have learned a great deal about what works in the rental business – as well as what does not work.

The purpose of this Blog is simply to share the most current and up to date ideas on maximizing revenues and profits in the rental business.  Again, all of the ideas are based upon the proven experience of our most profitable rental store owners. 

In the coming weeks and months we will be addressing all of the following subjects as all other important business building subjects that we come across in the future:

  • Rental Revenue Forecasts
  • How to Build a High Profit Business Plan
  • Building a Highly Productive Website
  • Revenue Building Strategies & Ideas
  • Expense Reduction Strategies & Ideas
  • Customer Experience Improvement Ideas

It has been my experience over the years that the most successful people are almost always eager to share their ideas with others.  Accordingly I am inviting and encouraging you to provide your own additional business building ideas to this blog with the goal of helping others to be as successful as you are.

I hope you will return here often.  Here’s wishing you much success in the future.

Tom Ross
Chairman, CEO
Alert Management Systems

PS  If profitability is a subject that is of interest to you, you many also want to peruse the profitability articles and presentations that are available in the “Profit Source” section of this website.