The latest forecast from the American Rental Association shows that industry revenue will decline by 16.6% in 2020 and a loss of $ 9.3 billion this year. According to research conducted by IHS Markit, the economic model shows a slight improvement in the third and fourth quarters of 2020.
It is expected that by 2020, Canada's rental income will decline by 11.3%. According to research, equipment rental companies are feeling the impact of a slowdown in the construction industry in certain regions, but IHS Markit believes that the current recession is not commensurate with the 2008-2009 Great Depression. The company said that although the financial situation looks similar to those years, they believe that the current market conditions will not last long.
Looking ahead, the forecast shows that the total construction volume fell by -15.7 in 2020, and then fell by -2.2 in 2021, but eventually rebounded by 8.7% in 2022.
However, this number may change depending on when the US economy and leasing industry are back on track.
The new forecast was presented at the free ARA Rentalytics webinar hosted by ARA on April 9th, which discussed the economic impact of coronavirus (COVID-19) on the equipment and event rental industry. This webinar is the third of these four webinars and covers ARA ’s response to coronaviruses. Industry surveys to understand the impact on ARA members; legislative updates in Washington DC; and look at the overall economy.
With stimulus checks in the United States deposited into the bank accounts of many Americans, and President Trump talked about the possible increase of $ 1 trillion in infrastructure, the survey showed that “many companies are in a state of balance, which suggests that this may not be the case. It is getting better and better, and it is not getting worse. This may be due to some optimism about recovery / stimulation funds, or simply that the outbreak of coronavirus has had the biggest impact on the industry. "ARA said.
