By Jonathan Kozlowski – American Rental Association
The American Rental Association’s forecast for Q3 indicates a 1.2% softening of the year’s growth projection, an 8.9% revenue increase – down from the 9.7% projected in Q2.
- Q1 forecast: 7.9 increase
- Q2 forecast: 9.7% increase
- Q3 forecast: 8.9% increase
The American Rental Association’s latest growth projection for 2024 indicated some softening of the rental industry. The Q3 projection is now an 8.9% revenue increase (a decrease from the Q2 forecast), bringing the construction and general tool rental revenue to $78.7 billion and a 5.3% growth in 2025. The projections rental revenue for construction and industrial is now $62.3 billion and $16.4 billion for general tool. Numbers are for the U.S. and Canada.
In the August 2 release, Tom Doyle, ARA vice president, program development, reminds us all that even through the softer growth, “opportunities continue to expand.” The release also includes comments from Scott Hazelton, managing director at S&P Global (the international forecasting firm that compiles data and analysis for the ARA forecast), and the president of Vandaila Rental, Kurt Barney.
Hazelton’s comments seem to place the onus of the decreased projection on the general tool segment, noting that construction and industrial changed a few tenths of basis points. “The market is still doing well but slowing,” he says. “Next year’s GDP growth is lower than trend at 1.6% growth, the trend is around 2.1%. The overall view of rental is positive moving forward, but there is uncertainty out there.”