Rental Management Magazine reported the U.S. equipment rental market will outpace gross domestic product (GDP) in the U.S. by four times in 2013, according to the American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor. Accordng to the report, revenues will reach $33.5 billion in revenue, representing a 7.0 percent increase over 2012 with revenue growth reaching 7.8 percent in the fourth quarter according to the latest quarterly forecast updated July 29, 2013.

In the U.S., the construction market and consumer spending continue to be the most important drivers of growth of the equipment rental market in 2013.

The construction and industrial equipment segment is forecast to grow 8.1 percent in 2013, while general tool segment revenue is expected to increase 5.4 percent over 2012.  The second quarter of 2013 is projected to be the slowest for the overall rental equipment market compared with 2012, but quarter-on-quarter growth is forecast to pick up in the final two quarters of the year.

The forecast for 2014 is more positive, calling for 9.2 percent growth in U.S. equipment rental revenue followed by 12.9 percent growth in 2015. By the end of 2017, equipment rental revenue in the U.S. is expected to exceed $46.5 billion.

In Canada, the equipment rental industry is forecast to generate nearly $4.6 billion in revenue in 2013, a 2.8 percent increase, and to continue growing throughout the forecast to reach nearly $5.4 billion in rental revenue in 2017.

Economic data and analysis for ARA’s Rental Market Monitor is compiled by IHS Global Insight. The ARA Rental Market Monitor is a subscription-based service for American Rental Association (ARA) members provided by ARA and Rental Management as part of a partnership with IHS Global Insight.

To read the full Rental Management Magazine article, click here.