Following the U.S. housing crash at the end of the last decade, the construction industry took a major hit but has shown some signs of life over the last year and a half. Earlier this month, the American Rental Association (ARA) shared its latest information from the ARA Rental Market Monitor which seems to indicate the construction industry is continuing on the road to recovery.
According to the report, U.S. equipment rental revenues topped $33 billion in 2013. Overall, North American rental revenue totaled $38 billion last year and will continue to increase in 2014 and beyond. Thanks to strong growth in the U.S. and Canada, rental revenues in North America are expected to hit $41.1 billion in 2014 and $52.3 billion by 2017.
Construction and industrial equipment revenues continued to make up the largest share ($22.3 billion) of any rental segment in the U.S. followed by the general tool ($8.5 billion) and party and event ($2.5 billion) segments. Overall, rental revenues grew at a year-over-year rate of 6.4 percent in 2013 with the construction and industrial equipment segment setting the pace at 7.3 percent followed by general tool 5.3 percent growth and party and event 2.8 percent growth.
Additionally, the forecast’s investment numbers provided another positive sign for the industry. In all, $11.1 billion was invested in rental equipment in 2013, a 10.3 percent increase year-over-year. Again, the construction and industrial sector paved the way with $7.5 billion dollars in investment.
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