A drop in demand for equipment rentals in oil-producing regions has been offset by increased activity in residential construction, the American Rental Association reported Tuesday.
The latest ARA Rental Market Monitor predicted an 8.2% growth in revenue—to $25.9 billion—for companies that rent construction and industrial equipment.
Despite harsh winter weather that delayed many construction projects, ARA predicted 2015 equipment rentals will reach an industry record.
Dive Insight:
The industry’s new peak will result from “a prolonged, gradual improvement in the economy as a whole, and construction, industrial and consumer markets in particular,” Scott Hazelton, managing director of the forecasting firm that compiled the data for the report, said in a release. “The majority of the growth has come from solid fundamentals.”
