Baird/RER Survey Respondents’ Revenues Jump 10.8 Percent in Q2; Softer Growth Expected in Second Half

By Michael Roth Expectations for the third quarter are for a 5.6-percent increase and 8.3 percent in the fourth quarter. Revenue for respondents to the Baird/RER Equipment Rental Surveys rose 10.8 percent year over year in the second quarter, after a 10.9-percent increase in the first quarter. Expectations for the third quarter are for a 5.6-percent increase and 8.3 percent in the fourth quarter. Baird noticed some cautious commentary regarding demand trends. A net 22 percent of respondents (revenue weighted) reported revenue and utilization higher than their initial budget for the second quarter. Rental rates rose 2.3 percent year over year, and forward rate outlook dropped to 3.1 percent as new equipment lead times continue to improve. Seventy-two percent of respondents said the second quarter was in line with expectations. With 22 percent reporting better-than-expected results, 6 percent said results were worse than expected. The 16-percent net positive is less robust than recent surveys. On a positive side, funding from the Infrastructure Bill and CHIPS Act lead to incremental activity, and several megaprojects are in the works providing visibility on demand into 2024. And homeowners are still investing in their residences, both inside and outside. READ FULL ARTICLE >>