ARA Publishes Rental Industry Research Report

The American Rental Association announces it has published the “2006 State of the Equipment Rental Industry” report, a comprehensive study and analysis of the equipment rental industry.

The ARA commissioned an initial study in 2005 with partner Global Insight, and the association said its 2006 report is much more extensive, utilizing more data sources and Global Insight's econometric modeling to assess the rental industry through a range of perspectives.

Key findings in the “2006 State of the Equipment Rental Industry” report include:

  • The total size of the U.S. rental market was $32.8 billion in 2006;
  • The rental market has grown substantially since 1998, at a compound annual growth rate of 7.4%, significantly outpacing general economic activity and price level changes;
  • The construction and industrial equipment segment represents the greatest share of the rental market with 68.6% of total rental revenues;
  • Rental penetration for the construction equipment market has increased significantly, having doubled in the last decade to its current level of 27.5%;
  • The fastest-growing market segment in 2006 has been general tool, with 11.7% compound annual growth from 1998 to 2006;
  • In this period of time, party and event rental revenue increased at a rate of 10.1%; and
  • Canadian rental firms are also well-positioned for growth as the modest economic growth currently being experienced in Canada is expected to be followed by greater growth than the U.S. will experience.

The nearly 100-page report also includes a total industry overview, market sizes for the United States and Canada, a five-year forecast, an investment outlook, competitive trends and composition of the marketplace, with individual overviews of the three industry segments • construction and industrial equipment, general tool and party and event.

The full report is available to ARA members for $1,500 and to prospective and non-members for $7,500.