The equipment rental industry in the United States is expected to generate $35.8 billion in revenue and outpace gross domestic product (GDP) by more than four times in 2014, according to the American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor™. Economic data and analysis for the ARA Rental Market Monitor are compiled by IHS Global Insight, the leading global source of critical information and insight.

In the U.S., total equipment rental revenue is forecast to grow 7.6 percent in 2014 to reach $35.8 billion, 10.5 percent in 2015 to reach $39.6 billion and another 10.2 percent in 2016 to reach $43.6 billion, surpassing the previous industry record of $36.9 billion in 2007. The growth rate is expected to be 8.9 percent in 2017 and 7.7 percent in 2018, with total rental revenue of $51.2 billion.

“The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong and rental growth will still handily outperform the overall economy. Looking forward, commercial construction and housing starts will contribute to growth in the construction and industrial and general tool segments,” says Scott Hazelton, managing director with IHS Global Insight.

Over the next two years, the construction and industrial segment and the general tool segment will experience double-digit growth in U.S. rental revenue. In 2015, construction and industrial rental revenue is projected to increase 10.7 percent and general tool 11.7 percent and again in 2016 with increases of 10.4 percent and 11.6 percent respectively.

The party and event segment is expected to continue it same steady growth, with revenue increasing 4.2 percent in the U.S. in 2014 to reach $2.6 billion.

The forecast for Canada calls for 5.2 percent growth in 2014 to $4.9 billion, with growth of 6.0 percent in 2015, 6.6 percent in 2016, 3.5 percent in 2017 and 3.6 percent in 2018 to total $5.9 billion at the end of the latest forecast.

It also is expected that rental companies in the U.S. will continue to invest more than 30 percent of their revenue in new equipment over the next five years. Total investment, according to the ARA Rental Market Monitor, is projected to reach $12.1 billion in 2014 and grow to $16.1 billion by 2018.