Revenue Forecast Update:
Global Insights Forecasting 5.6% Growth for the Rental Industry in 2011
Local Market Data Now Available at Very Low Cost
According to IHS Global Insight, the world’s leading economic forecasting authority, the United States Equipment Rental Business is expected to see a steep increase in revenues over the next several years. After bottoming out at about $26.6 billion in 2010, revenues are expected to grow 5.6% in 2011 and to reach $44.5 billion by 2015.
Source: April 7, 2011 Forecast Update by IHS Global Insights
According to IHS Global Insights’ latest forecasts, total U.S. Equipment Rental Revenue will grow 5.6% in 2011 and 67.3% by 2015. Growth of the major rental revenue sectors is forecast as follows:
• Construction and Industrial Equipment Rental revenue will grow 6.8% in 2011 and 73.0% by 2015.
• General Tool Rental revenue will grow 3.1% in 2011 and 68.5% by 2015.
• Party & Event Rental revenue will grow 4.4% in 2011 and 13.0% by 2015
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).
We believe 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 2008-2015:
• 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.
(Note: This is one of a series of blog articles that will appear here frequently. All the blog articles 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.)