Experts have recently predicted that dealers can expect rental industry trends that lead to larger increases in revenue across the board than previously forecasted! The American Rental Association (ARA) posits that their latest five-year review points to a high likelihood of the rental industry continuing to flourish through the year 2022. In fact, they even go so far as to say that revenue will reach over $64 billion in the next 4 years. And for the rest of 2018, revenue is expected to total $52.3 billion, up from the previously anticipated $51.5 billion forecast in February.
The rental industry has continued to strengthen since the last recession, alongside the U.S. economy. Although the growth has been slow, rental industry trends have helped it remain consistent. As Scott Hazelton, managing director of IHS Markit, the firm that gathers data for ARA Analytics, says “The rental industry has been able to not only maintain pace with economic growth, but exceed it.”
Much of the economic growth that has contributed to the growth of the rental industry is the result of capital spending. For example, construction spending has picked up year after year and has continued to improve. The rental industry trends outlined in the ARA report apply to construction and all other sectors of the rental industry.
The association also cited positive expectations for the 2018 Tax Cuts and Job Acts legislation. These laws are predicted to lead to more economic stimulus and, as a result, more investment in businesses, team expansion, and consumer spending. Despite business owner concerns over the possibility of rapid inflation across the global economy, experts say the long-lasting success predicted in this latest report will persevere, partially because of this and other changes in U.S. government law.
What do these rental industry trends mean for you? It might be time to consider expanding your fleet. Use ASPEN’s dealer management system to review your personal rental utilization report. Its Financial Utilization Reporting provides detailed insight into the utilization of specific types of equipment, helping you to better predict which units require backup and transfer. You can also use ASPEN to track and filter revenue streams by equipment type, market segment and industry for better, more informed decision making. To learn more about ASPEN’s rental capabilities, visit our website.