Tag Archive for 'ARA'

American Rental Association Survey Results: Contractors expect to increase rental activity

Survey: Contractors expect to increase rental activity

ARA commissions “Rental Customer Needs Study”

 Among professional construction contractors who rented equipment in the past year, a majority expects to increase reliance on rental in the year ahead, according to a comprehensive survey of contractors released by the American Rental Association (ARA).

The “Rental Customer Needs Study,” conducted by RSG, an independent research firm for ARA, found that 93 percent of professional contractors surveyed rented equipment in the last year. Of those who rented, 92 percent planned to rent as least as much as last year and 52 percent expected to increase renting over the next year.

Portable toilets, lifts and scaffolding, backhoes, dump trucks, and mini excavators are the most popular rental items among contractors, the study found. Reasons contractors rented included: it made more financial sense than buying equipment (45 percent); they needed equipment for immediate use and did not want to purchase (43 percent), and they needed to use the equipment infrequently or only for a short time period (43 percent).

Earth Digger Driver at construction site

Contractors who expect to rent more next year will do so because they plan to use what they currently rent more frequently or they plan to take on more quick-turnaround projects, the study concluded.

More than 90 percent of survey participants said rental locations are doing an excellent job of providing their customers with satisfying rental experiences. According to the study, there are five key things that professional contractors want from their local rental company:

  • Attentive customer service
  • Reliable, well-maintained and varied equipment
  • Online engagement
  • Clear communication
  • Rewards

Tony Conant, ARA CEO, said the research findings will help guide ARA members in their mission to deliver a premier rental experience.

“We invested in this study to better understand the evolving needs and preferences of contractors,” Conant said. “It’s exciting that so many professional contractors are thinking of rental first for their equipment needs.   With these new research insights, our rental members will have information and knowledge to better serve the needs of this segment.”

Data for the study came from surveys of various types of contractors including residential building, specialty, non-residential and commercial building, landscape, utility, road and highway construction, site development/earthmoving, and more.

Full survey results are available to ARA members on the ARA website, www.ararental.org. Nonmembers can download a free white paper at www.ararental.org. ARA offers a rental store locator at www.RentalHQ.com for association members.

About ARA: (www.ARArental.org) The American Rental Association, Moline, Ill., is an international trade association for owners of equipment and event rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment. ARA members, which include more than 10,500 rental businesses and more than 1,000 manufacturers and suppliers, are located in every U.S. state, every Canadian province and more than 30 countries worldwide. Founded in 1955, ARA is the source for information, advocacy, education, networking and marketplace opportunities for the equipment and event rental industry throughout the world.

ARA Forecasts North American Rental Revenue to Surpass $71B in 2022

ARA Rental Revenue Forecast Gains Strength

The American Rental Association (ARA), for the second quarter in a row, is projecting larger increases in revenue almost across the board for the equipment and event rental industry than it did in the previous five-year forecast released in May.

The July 2018 forecast from ARA Rentalytics calls for total U.S. rental revenue of $53.04 billion in 2018, up 7.6 percent, and then growing 5.8 percent in 2019, 5.9 percent in 2020, 5.1 percent in 2021 and 4.7 percent in 2022 to reach $65.4 billion.

The May forecast called for total U.S. rental revenue of $52.3 billion in 2018 growing to $64.1 billion in 2022.

“ARA’s second-quarter forecast shows continued strong growth in rental revenues over the forecast period. Growth rates for 2018 and 2019 look particularly strong in all segments of the equipment and event rental industry with growth rates forecast at more than double the rate of GDP [gross domestic product] growth,” says John McClelland, Ph.D., ARA’s vice president, government affairs, and chief economist.

While the near-term outlook is particularly strong, McClelland said the out-years of the forecast could be subject to change due to the potential impact of tariffs on the economy and construction projects.

“Coupled with the increases in equipment prices that are almost inevitable after the imposition of tariffs on steel and aluminum, the equipment and event rental industry could face a challenging economic climate beginning in 2020 and beyond,” McClelland says.

According to ARA Rentalytics, construction and industrial equipment rentals continues to account for the bulk of revenue in equipment and event rental and now is expected to reach $37.15 billion in 2018, up 8.3 percent over last year. General tool rental revenue in 2018 is forecast to be $12.49 billion, up 5.4 percent. Party and event revenue is expected to reach $3.4 billion in 2018, up 8.8 percent.

ARA also forecasts total investment in equipment by rental companies to reach $13.9 billion in 2018, up 7.8 percent over 2017.

In Canada, the forecast is for $5.4 billion in revenue in 2018, up 4.4 percent, with 4.8 percent growth in 2019, 4.7 percent in 2020, 3.8 percent in 2021 and 2.7 percent in 2022 to reach $6.159 billion.

About ARA: (www.ARArental.org) The American Rental Association, Moline, Ill., is an international trade association for owners of equipment rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment. ARA members, which include more than 10,000 rental businesses and more than 1,000 manufacturers and suppliers, are located in every U.S. state, every Canadian province and more than 30 countries worldwide. Founded in 1955, ARA is the source for information, advocacy, education, networking and marketplace opportunities for the equipment and event rental industry throughout the world.

The American Rental Association unveils new brand identity

A new day, a new brand … Modern. Relatable. Collaborative.

 

For the first time in more than 40 years, The American Rental Association (ARA) proudly unveils a new brand identity to reflect the evolution of the equipment and event rental industry. The move is part of an extensive branding initiative designed to carry the association forward in better serving its members and representing a community of equipment and event rental professionals.

“In order to effectively support this ever-changing and growing industry, we knew we needed to modernize our brand and our communications. As more second-, third- and fourth-generation owners get involved and the large national companies expand, it was necessary for us to evaluate the association’s role and determine how we can best support the industry. This is one step toward enhancing our relevance and value to all who are part of this unique rental community,” says Tony Conant, ARA CEO.

In 2017, the ARA board of directors approved the formation of the ARA Brand Committee to guide the association through a rebranding process. Committee members represented all three segments of the equipment and event rental industry. The goal was to create a cohesive family of brand marks that would work and read well in all facets of communications, represent the entire rental industry and speak to the values of our young professionals and future leaders of the association.

The rebranding process also led to a new positioning statement for the association: ‘Advancing the equipment and event rental community’. “Our previous identity recognized the members who specialize in equipment rental, but it didn’t specifically speak to those in the party and event segment,” says Conant. “Furthermore, the term ‘community’ is an accurate reflection of who we are as rental professionals and how we operate, like a community of helpful, like-minded people”

All facets of the association’s identity were evaluated during the rebranding process. Updates include new logo marks for ARA Insurance, ARA Foundation, Rental Management and the industry’s annual trade show and convention. During the research, it was discovered that the name ‘The Rental Show’ did not have brand equity and that ARA members didn’t feel that the show was closely aligned with the association. Effective with the rebrand, the new name and accompanying logo for the industry’s premier event is The ARA Show.

The new ARA brand mark reflects a modern and approachable look in terms of color, typeface, and design while paying homage to the previous logo. “We’re focused on continuing the development of the association with a brand update that builds on our rich history of being a unique platform where rental professionals can learn, share ideas and give back to our industry,” says Conant.

About ARA: (www.ARArental.org) The American Rental Association, Moline, Ill., is an international trade association for owners of equipment rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment. ARA members, which include more than 10,000 rental businesses and more than 1,000 manufacturers and suppliers, are located in every U.S. state, every Canadian province and more than 30 countries worldwide. Founded in 1955, ARA is the source for information, advocacy, education, networking and marketplace opportunities for the equipment and event rental industry throughout the world.

ARA Reports that the equipment rental industry poised for stronger growth

ARA five-year forecast calls for revenue to reach $59.4 billion in 2021

ARA now projects U.S. equipment rental revenue to reach $49.4 billion in 2017, up 4.5 percent over last year. The February forecast projected U.S. equipment rental revenue of $48.9 billion in 2017 and an average annual growth rate of 4.6 percent to reach $56 billion in 2020.

The May 3 forecast calls for U.S. rental revenue to grow 4.7 percent in 2018, 5.1 percent in 2019, 4.6 percent in 2020 and 4.4 percent in 2021 to reach $59.4 billion combined for the three segments of the industry including construction/industrial, general tool/light construction and party/special event.

This is the second consecutive quarterly forecast to project stronger growth during the forecast period compared to the previous quarterly update of the ARA Rental Market Monitor™ subscription service by IHS Markit™, the economic forecasting firm that compiles the data and analysis as part of a partnership with ARA and Rental Management.

“The equipment rental continues to post strong performance numbers with annual revenues closing in in the $50 billion mark this year,” says John McClelland, ARA’s vice president for government affairs and chief economist.

“The issues going forward are how the Congress is going to deal with tax reform and infrastructure spending. If tax reform can lower rates and simplify the code for all businesses that could be a sign of even stronger growth and a strong infrastructure bill will add to that momentum,” McClelland says.

Scott Hazelton, managing director, IHS Markit, says weak first quarter numbers for the U.S. gross domestic product (GDP) masked solid demand for investment, which will help fuel growth in equipment rental revenues.

“Construction growth has remained robust. While it will moderate over the year, it will support significant rental potential,” Hazelton says. “Reduced headwinds from exchange rates and improving business confidence also are aiding the industrial sector and its equipment rental demands.”

Hazelton also says policy uncertainties continue to temper the forecast because of unknowns. “Good decisions could improve the outlook while poor ones could substantially diminish it. However, the trends to date suggest strong equipment rental demand for 2017, 2018 and beyond,” he says.

Despite sluggishness in nonresidential construction, contractions in real residential construction and uncertainty of additional infrastructure spending, the construction and industrial equipment segment and general tool rental segment are projected to achieve compound annual growth rates (CAGRs) of 4.1 percent and 6.1 percent, respectively, between 2017 and 2012, according to the ARA Rental Market Monitor.

In addition, party and event rentals will benefit from continued improvement in consumer spending and rental revenue is projected to show a 5.8 percent CAGR over the 2017 to 2021 period. Total equipment rental revenue is expected to grow at a CAGR of 4.7 percent between 2017 and 2021.

In Canada, the five-year forecast calls for accelerating revenue growth each year, starting with a 2.7 percent increase in 2017 to reach $5.12 billion. Total rental revenue is expected to grow another 3.1 percent in 2018, 4.2 percent in 2019, 5.3 percent in 2020 and 5.9 percent in 2021 to reach $6.13 billion.

Construction and industrial equipment and general tool rental revenues are expected to grow at CAGRs of 4.7 percent and 4.3 percent, respectively, through 2021. Party and event rental is expected to grow at a CAGR of 4.2 percent, benefitting from stable consumer spending and a rebound in corporate disposable income in Canada. Total rental revenue in Canada is pro9jected to grow at a CAGR of 4.6 percent between 2017 and 2021, according to the ARA Rental Market Monitor.

About ARA: (www.ARArental.org) The American Rental Association, Moline, Ill., is an international trade association for owners of equipment rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment. ARA members, which include more than 10,000 rental businesses and more than 1,000 manufacturers and suppliers, are located in every U.S. state, every Canadian province and more than 30 countries worldwide. Founded in 1955, ARA is the source for information, advocacy, risk management, business development tools, education and training, networking and marketplace opportunities for the equipment rental industry throughout the world.

About IHS Markit™: (www.ihsmarkit.com)

IHS Markit (Nasdaq: INFO) is a provider of critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.