According to the latest quarterly update of the five-year forecast released by the American Rental Association (ARA), all signs point to significant Canadian growth this year, followed by more moderate rises in sector revenue through to 2026.
The update projects Canadian construction and general tool segment equipment rental revenue to rise 14.4 per cent in 2022 to US$4.7 billion. The association is also predicting growth of six per cent in 2023, two per cent in 2024, 3.4 per cent in 2025 and 3.3 per cent in 2026, when revenues are expected to exceed US$5.4 billion.
This closely mirrors the association’s outlook for the United States, where the combined construction and general tool segments are anticipated to grow 11.2 per cent to reach nearly US$55.9 billion in 2022. Growth of 6.2 per cent is expected for 2023, 2.5 per cent in 2024, 3.3 per cent in 2025 and 3.7 per cent in 2026, when revenue is expected to total more than US$65.1 billion.
“Rental revenue continues to experience significant growth, despite some headwinds in 2022. The longer-term forecast, while showing slower growth than this year, remains bullish,” stated Tom Doyle, ARA vice-president for program development. “It is generally a good time to be in the equipment rental industry.”
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He added some warning about economic uncertainties, advising to watch the key driving factors.
“Depending on how long we have high inflation, supply chain constraints, labour shortages and climbing interest rates, those econometric drivers can have an impact on the rest of 2022 and the outlook for 2023,” he said.