(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.
