Equipment rental store owners and managers as well as those who run companies that supply products to the industry remain very optimistic about growth in 2012.
Of those responding to the American Rental Association’s (ARA) April 2012 Economic Survey of rental store members, 88 percent currently project an increase in annual rental revenue this year. Nearly half of the respondents — 47 percent — say they expect double-digit revenue growth, which is 10 percentage points higher than those responding to ARA’s January 2012 survey.
The positive outlook also translates into equipment buying expectations as 74 percent of the ARA rental store survey respondents said they will spend more on annual new rental equipment purchases in 2012 than they did last year with 41 percent planning a double-digit spending increase this year.
Among ARA equipment manufacturers and suppliers responding to a separate survey, 90 percent said they expect sales into the rental channel in 2012 to be more than in 2011, including 63 percent expecting double-digit growth in annual sales to rental customers.
The high expectations of rental stores and manufacturers are in line with and carry over from the enthusiasm and electric excitement felt by those who attended The Rental Show 2012 in New Orleans in early February.
“It’s encouraging to see continued optimism in the rental marketplace, which signals the momentum of greater rental revenue ahead,” says Christine Wehrman, ARA’s executive vice president and CEO.
“The industry may well outpace the growth projected by IHS Global Insight at the start of the year, given this positive outlook on the part of rental businesses and suppliers. We are pleased to see the equipment rental industry perform at this level of growth, a rate over three times the economy, indicating the strength of rental as a preferred choice for customers,” Wehrman says.
The ARA economic surveys reflect a snapshot in time of those who responded and may not be representative of the industry as a whole. However, rental companies can benchmark their businesses against these results.