According to the latest forecast released by the American Rental Association (hereinafter referred to as ARA), despite adverse factors such as supply chain problems and labor shortage, the expectation of American equipment rental revenue (including construction machinery and general tools) in 2022 is still optimistic, which is expected to increase by 11.1% to $56 billion.
The construction machinery and equipment leasing business has shown a strong growth momentum with a year-on-year increase of 10.2% in 2021. It is expected that the growth rate will increase by 13.0% year-on-year in 2022, and the total revenue will reach US $41.7 billion. The general tool leasing business is expected to grow by 7.0% to US $14.1 billion in 2022.
In 2021, the total revenue of equipment leasing in the United States increased by only 2.9% year-on-year. After the rapid growth of 11.1% in 2022, the growth rate is expected to slow down to about 6.0% in 2023, and further slow down to 3.6% and 3.9% in 2025 and 2026. The total revenue is expected to exceed US $60 billion in 2024 and reach about US $65.5 billion in 2026.
Dr. John D. McClelland, vice president of government affairs and chief economist of ARA, said: "As we all know, rental income increases when fleet expansion or interest rates increase. In fact, these two situations are happening at the same time. Paradoxically, while inflation drives up interest rates, supply chain problems are inhibiting fleet growth. In the past, a lot of income growth was due to fleet expansion, but now, income growth is largely driven by higher interest rates."
