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 percent 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 percent growth this year to total
$41.7 billion in revenue following a 10.2 percent increase in 2021. General tool in 2022 is expected to grow 7 percent to reach $14.1 billion. While equipment rental revenue growth slows to 6 percent in 2023, 2.9 percent in 2024, 3.6 percent in 2025 and 3.9 percent 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 percent growth in 2022 to reach $4.5 billion followed by increases of 6.4 percent in 2023, 3.8 percent in 2024, 2.1 percent in 2025 and 1.8 percent in 2026 to $5.2 billion.