ARA Updated Forecast Predicts Sharp Increase in Rental Revenues

By Jordanne Waldschmidt | Equipment World The American Rental Association (ARA) has revised its forecast for 2023 and 2024, predicting a significant increase in rental revenues for construction and industrial equipment (CIE). CIE rental revenue was expected to reach $45.5 billion in 2023 and $46.7 billion in 2024, but new data suggests that CIE revenue will reach $56 billion this year and $59 billion in 2024. ARA says two factors are driving these changes: the data on non-residential construction spending used in the model and the increasing importance of ‘specialty rental’ to overall rental revenues. A recent analysis by economists at the Federal Reserve Board has suggested that data for non-residential construction spending produced by the U.S. Census Bureau has underestimated non-residential construction spending by at least 20 percent since the second quarter of 2021. READ FULL ARTICLE >>