The rental industry is showing signs of recovery according to IHS Global Insight, an economic forecasting firm, in a study prepared for the American Rental Association.
“The Outlook report indicates that the worst may be over for the equipment rental industry,” said Christine Wehrman, CEO, American Rental Association. “The U.S. economy is proving its resilience with growth returning to many sectors. However, construction spending continues to lag behind the rest of the economy. While construction spending is weak, spending on rental is beginning to grow and is leading the way in the construction space. We see the equipment rental industry gaining momentum in 2010 and 2011, with significant growth moving into 2012. These are positive signs for the entire economy as manufacturers, service providers and other vendors begin their budget planning for 2011 in the coming weeks and months.
“Although nonresidential construction, state and local spending remain down, other areas of the U.S. construction market have begun to rebuild. With business equipment investments surging, almost $6 million in stimulus money flowing into the economy in 2010 and consumer confidence driving increased demand, the equipment rental industry is poised to gain strength in Q3 and Q4, with improvement in all categories forecasted for 2011.”