Baird, in partnership with RER, last week published the results of the first-quarter 2011 survey of the rental equipment industry, which showed a 13.5-percent average rental revenue increase from the first-quarter 2010 survey and a solid improvement over the 4.5-percent year-over-year average rental revenue increase reported in fourth-quarter 2010.
Respondents’ average fleet size increased 3.3 percent year-over-year, showing positive growth versus -1.5-percent growth in the fourth quarter 2010. Rental rates in the first quarter improved 2.4 percent year-over-year and were up from -0.8 percent in 4Q10. Utilization rates on average were 50.5 percent for the quarter ended March 31.
The Baird/RER survey showed the 2011 rental revenue growth forecast improved to 12.8 percent from the 7.6-percent forecast in the fourth quarter. The rental rate growth forecast for 2011 also improved in the first quarter to 5.7 percent from 2.3-percent growth forecast last quarter. Respondents also reported fleet spending over the next six months is expected to rise 12.8 percent year-over-year.
Participants of the Baird/RER survey are senior executives and senior managers at rental equipment businesses in all regions of the United States, parts of Canada and some international markets.
To view the full results of the first-quarter 2011 Baird/RER survey, visit http://www.rwbaird.com/docs/MantheySurveys/1Q11/1Q11RER_Survey.pdf.
Robert W. Baird & Co. is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. For more information, visit Baird’s website at rwbaird.com.
RER has covered the equipment rental industry since 1957, providing its readers with a mix of news, features and product information. For more information, visit www.rermag.com.