ARA reveals US equipment hire growsThe US construction and general tool equipment hire industry has grown by 8.9% year-on-year to USD78.7 billion for 2024, according to the American Rental Association (ARA).
While the growth is strong, the figure is down from the ARA’s second quarter projection of 9.7% y-o-y growth for the year.
The ARA has also forecast a further 5.3% y-o-y growth in 2025.
ARA vice president Tom Doyle says while the sector is experiencing “softer growth” than anticipated, opportunities to grow continue to present themselves.
Scott Hazelton, managing director at S&P Global which compiles the data for ARA, states the forecast for the construction and industrial sectors remains largely unchanged, while general tool hire has weakened.
“The market is still doing well, but slowing,” Hazleton observes. “Next year’s GDP growth is lower than trend at 1.6% growth; the trend is around 2.1%.
“The overall view of rental is positive moving forward, but there is uncertainty out there.”
Kurt Barney, president of Ohio’s Vandalia Rental, confirms this, adding: “ Largely, what we’re seeing is softening growth as well.”
“We’re seeing pricing elasticity,” Barney adds. “It’s no longer, ‘Do you have it?’ We‘re back to doing business like 2019 when we have to really communicate the value proposition of working with us.”
The revised forecast for total Canadian equipment rental revenue for 2024 shows 6.6% growth totalling USD5.75 billion, against last quarter’s projection of 7.2% growth, totalling USD5.79 billion.
Canadian construction and industrial equipment hire revenue in 2024 is projected to be USD4.67 billion.
The 2025 projection for Canada’s combined rental revenue is USD6.14 billion, a 6.7 % y-o-y growth.
Ontario’s Rob Wilson, chief operating officer with Stephenson’s Rental Services, agrees: “What we’re seeing across our markets is pretty slow but Stephenson’s is still growing. It’s a mixed bag. Residential activity represents 60 to 65% of those markets and that activity is down.”
Wilson is optimistic that the second half of 2025 will be very strong.