MOLINE, Ill. (May 10, 2022) — Even with supply chain issues and labor shortages, U.S. equipment rental revenue, including both construction and general tool, is expected to grow by 11.1% to reach nearly $56 billion in 2022, according to the latest quarterly forecast released by the American Rental Association (ARA).
Construction equipment rental is leading the way, with 13% growth this year to total $41.7 billion in revenue following at 10.2% increase in 2021. General tool in 2022 is expected to grow 7% to reach $14.1 billion.
While equipment rental revenue growth slows to 6% in 2023, 2.9% in 2024, 3.6% in 2025 and 3.9% in 2026, the industry is expected to surpass $60 billion in 2024 and is forecast to reach $65.5 billion in 2026.
“One thing we know is that rental revenues grow when the fleet expands or when rates increase,” says John McClelland, Ph.D., ARA Vice President for government affairs and chief economist.
“In reality, both things are happening today. However, supply chain issues are inhibiting fleet growth while inflation is pushing rates higher. In the past we saw a lot of revenue growth that we attributed to fleet growth. Now we are seeing revenue growth that is being driven by higher rates,” McClelland says.
The revenue forecast for Canada is similar to the U.S. with 9.6% growth in 2022 to reach $4.5 billion followed by increases of 6.4% in 2023, 3.8% in 2024, 2.1% in 2025 and 1.8% in 2026 to $5.2 billion.