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Trade association expects equipment rental revenue to hit nearly $60B in 2021

The American Rental Association projects consistent revenue growth for the equipment rental industry in the U.S. over the next five years, resulting in total revenue of $59.6 billion in 2021.

The association said in its ARA Rental Market Monitor five-year forecast updated in February that revenue will rise 4.5% in 2018 to reach $51.5 billion, 5.6% in 2019, 5% in 2020 and 4.4% in 2021.

In Canada, equipment rental revenue is expected to reach $5.35 billion in 2018, with growth rates of 4.1% in 2019, 5% in 2020 and 4.7% in 2021 to total about $6.13 billion.

The forecasts were buoyed by the Tax Cuts and Jobs Act taking effect in 2018.

Construction/industrial equipment rental revenue in the U.S. is expected to expand 4.3% in 2018, 4.5% in 2019, 4% in 2020 and 3.4% in 2021 to reach $40.5 billion.

General tool rental revenue is seen to post increases of 4.7% in 2018, 5.9% in 2019, 7.8% in 2020 and 6.7% in 2021 to total $15.1 billion, while party and event rental revenue is expected to show a 6.5% increase in 2018, 6.1% in 2019, 6% in 2020 and 5.6% in 2021 to reach $4 billion.

Investment in rental equipment by equipment rental companies is projected to increase 3.1% in 2018, 8.8% in 2019, 3.2% in 2020 and 0.4% in 2021, exceeding $15 billion.

The share of revenue used for investment will remain fairly steady at 25.9% in 2018, 26.6% in 2019, 26.2% in 2020 and 25.2% in 2021.

The American Rental Association is an international trade association for owners of equipment rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment.