A slowdown in inventory accumulation and adverse weather limited first-quarter real gross domestic product (GDP) growth in the United States this year, but total equipment rental revenue growth in North America continued to more than triple the growth rate of the general economy with a 6 percent gain in the first quarter of 2014, according to the latest American Rental Association (ARA) forecast from the ARA Rental Market Monitor™.

The forecast, updated April 29, projects total equipment rental revenue in North America to grow 7.5 percent in 2014 to reach $40.8 billion, 10.4 percent in 2015 to reach $45 billion and another 9.3 percent in 2016 to $49.2 billion. The growth rate is expected to be 7.7 percent in 2017 and 7.2 percent in 2018, with total revenue of $56.8 billion.

According to the ARA Rental Market Monitor, the general tool segment will have the highest compound annual growth rate (CAGR) at 10.2 percent over the five-year forecast and will increase its share of total rental revenue from 24.2 percent in 2013 to 25.7 percent by 2018.

Construction and industrial equipment revenue, driven by a stronger U.S. construction market, is forecast to see a CAGR of 8.6 percent between 2014 and 2018 in North America.

In the U.S. alone, total rental revenue in 2014 is forecast to reach $35.9 billion, up 7.7 percent, led by an 8.2 percent increase in construction and industrial rental revenue and a 7.3 percent increase in general tool revenue.

Both segments are expected to hit double-digit growth in the U.S. in 2015 with construction and industrial revenue projected to increase 11.0 percent and general tool 13.2 percent, and again in 2016 with increases of 10.0 percent and 11.4 percent, respectively, with high single-digit growth expected in 2017 and 2018.

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