‘Worst may be over’ for US rental market says ARA
By Murray Pollok14 July 2010
The US equipment rental market is starting to show signs of recovery although significant growth will only occur in 2012, reports the American Rental Association's latest market study from forecasting firm IHS Global Insight.
"The Outlook report indicates that, the worst may be over for the equipment rental industry," said Christine Wehrman, chief executive officer of the ARA, "The US economy is proving its resilience with growth returning to many sectors."
Ms Wehrman said that although construction spending continued to lag behind the rest of the economy, spending on rental was beginning to grow; "We see the equipment rental industry gaining momentum in 2010 and 2011, with significant growth moving into 2012.
"These are positive signs for the entire economy as manufacturers, service providers and other vendors begin their budget planning for 2011 in the coming weeks and months."
"The Outlook report said that the rental sector was poised to gain strength in the third and fourth quarters with improvement in all rental sectors forecast for 2011.
The construction and industrial equipment market has been hit hardest by the recession, and general tool rentals, although less affected, also declined as consumers postponed planned home improvement and do-it-yourself projects during the recession.
"With consumer confidence growing, homeowners and small business owners will rely on their rental stores to supply them with the tools they need to get these delayed projects started in 2010," said Ms Wehrman.
Party and event equipment rentals have been the sector least impacted by the recession, experiencing only a modest decline in 2009 and forecast to grow this year.
"With the influx of capital into this market in 2010, and positive customer demand, the party and event market is poised to be a leader in our industry regarding the market's recovery into 2011 and beyond," said Ms Wehrman.
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