A Leader in Information
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2 A Leader in Information The new 2007 State of the Equipment Rental Industry report, compiled by economic forecasting leader Global Insight for the American Rental Association and Rental ManageMent, offers the only complete historical, current and future overview of the rental industry and is now available for purchase. The new report is unrivaled in both the scope and depth of its analysis of the underlying economic drivers shaping our industry today. The report offers in-depth research on the total North American equipment rental industry, including the following: n Expanded information on the Canadian market. n Estimates of the rental industry s current and historical market size, by segment. n Forecasts of rental revenue, by segment. n Key competitive trends that have affected the rental industry during the past year and throughout the past decade. n Regional details of market potential measures. n Enhanced product information on the three industry segments construction and industrial equipment, general tool, and party and event. n Construction equipment product line segmentation. n Two free exclusive webinar updates presented by Global Insight. ARA chose Global Insight as its research partner because the firm has continually received top rankings and is one of the world s largest economic and financial forecasting firms. Global Insight provides comprehensive ongoing economic, financial and political coverage of countries, regions and industries. The report defines the industry economically, both for those in the industry as well as our customers and outside audiences. ARA stands behind both the quality and accuracy of this research; it serves as the industry benchmark. ARA wishes to thank all survey participants who contributed to the results of the 2007 State of the Equipment Rental Industry report and asks for your continued participation in 2008.
3 Discover the Value The 2007 State of the Equipment Rental Industry report, compiled by economic forecasting leader Global Insight for the American Rental Association and Rental ManageMent, th St., Moline, IL offers economic information on the rental market in the 800/ / United States and Canada. Fax: 309/ The report gives insight on the growing rental industry as a whole, with expanded information on the Canadian market, as well as sector overviews with regional breakouts. Learn about the economic drivers of this growing industry, which hit a North American revenue total of more than $42.3 billion in Rely on this essential resource to analyze your business by using the financial forecasts, details on market size and penetration, and investment outlooks of the major markets construction and industrial equipment, general tool, and party and event. The American Rental Association s exclusive industry report provides you with strategic information to strengthen your competitive advantage. Introduced at The Rental Show in Atlanta, the ARA s 2006 State of the Equipment Rental Industry report is very well done and highly informative. It provides an excellent tracking of the various components of the industry, going back to 1998, as well as offering very valuable growth projections going out to The most important values of the study to us were the insights into why the growth occurred in the past and what the key growth motivators will be in the future. We and our clients both found this study helpful in arriving at improved projections and business plans for next year. I especially appreciated the update that was provided in November of 2007 at no additional cost. Tom Ross Chairman and CEO Alert Management Systems Colorado Springs, Colo. North America s rental market has shown strong growth over the past 10 years, at 7.8 percent compound annual growth, significantly outpacing overall economic activity. The rental market will continue to expand during the forecast period, but at a slower compound rate of 4.1 percent due principally to a weak U.S. construction market in Canada, particularly the western provinces, and the U.S. Southwest and Mountain regions will see the strongest growth during this period. Party and event will be the strongest-performing segment during the forecast period as consumer spending and business marketing efforts will be stronger than investment activity. With compound annual growth of 7.6 percent, construction and industrial equipment was the fastest-growing segment of the U.S. rental market in 2007, reaching $25.5 billion in revenue, or 69.7 percent of 2008total Copyright American Rentaltool Association rental revenue. General has been the leading U.S. market segment during the past decade, with 11.6 percent compound annual growth from 1998 to That trend slowed markedly in 2007 to 4.1 percent due to the housing recession. It accounted for $8.8 billion in revenue, or 24.2 percent of the 2007 U.S. industry total. Party and event rental represented $2.2 billion in revenue in 2007, or 6.1 percent of total U.S. rental revenue, down slightly from its decade average of 6.9 percent compound annual growth.
4 The ARA s 2006 State of the Equipment Rental Industry report is the first of its kind to coalesce information on the rental industry in a single, easy-to-use publication. This undoubtedly will become the standard reference document for those conducting business in or researching the rental industry. Michael Disser Vice President of Marketing NES Rentals Chicago Each of the categories has shown remarkable growth in Canada in the past decade, just as in the United States, but these patterns have differed across the segments. The construction and industrial equipment rental category makes up the largest share of the market, at US$4.3 billion, or 74.3 percent. The second-largest segment in Canada is general tool, which generated US$1.4 billion in revenue, or 23 percent. The party and event share represented 2.7 percent of the rental market, with a total revenue of US$157 million. Table of Contents Introduction Who We Are Purpose of this Study 2007 ARA/Global Insight Survey 2007 Annual Report Total Industry Overview Current Market Size Five-year Forecast Outlook What do These Figures Mean to You? This report is the economic definition of the equipment rental industry. This content allows those involved in equipment rental to better understand the dynamics taking place within the industry and includes an economic look to the future based on identified drivers for each industry segment. Use this as your resource for financial and business planning. You will find this report helpful to you for both comparison purposes and understanding your rental market. Analyze your business operation within the context of your entire industry whether United States or Canada and use this report to map your financial future. Will you match the projections? This resource aids in mapping revenue growth, and assists discussions with boards of directors and financial institutions and others that influence your business. It can be your resource to make strategic decisions regarding your inventory, create market assessments or compile information for the benefit of your company. This report represents the only comprehensive research on the equipment rental industry in the United States and Canada. An industry survey, conducted annually, and U.S. Census data are integral to the report information. By ordering this report, you also will receive invitations to participate in two free exclusive webinars in 2008 to keep you current with the latest economic information. Construction and Industrial Equipment Current Market Size and Forecast Market Penetration General Tool Current Market Size and Forecast Party and Event Current Market Size and Forecast Appendix 2007 ARA/Global Insight Survey Market Sizing Construction Market Penetration Comparison of the Results Regional Construction Forecasts
5 2007 State of the Equipment Rental Industry Report It s the only comprehensive report on the industry. Compiled by economic research firm Global Insight, the 2007 State of the Equipment Rental Industry report is a detailed study of the trends, drivers and opportunities shaping the course of the North American rental industry today and in the future. Order it today. Not only will you receive the report, but you ll also be invited to participate in two exclusive webinar updates to be presented by Global Insight in This information can be implemented into your daily business practices. Quantity Member Price Nonmember Price $695 $2,995 $295 per additional copy $995 per additional copy (This report is copyrighted by the American Rental Association. All rights are reserved. No part of this book may be reproduced or used in any manner whatsoever without prior written permission.) Fax your completed order form to 309/ Webinars (x2) Subtotal Tax FREE Shipping/Handling Total FREE Illinois (7.25%), Texas (6.25%) Company Information Name: Member ID: Company name: Address: City: State/province: ZIP/postal: Country: Phone: Fax: For more information, call ARA Member Services at 800/ Payment Information Check (payable to American Rental Association) Card No. Expires / Cardholder name: Signature: You also can mail to the American Rental Association at th St., Moline, IL (ARA office use only) Date received Amount Payment type Acknowledged by
6 th St., Moline, IL / / Fax: 309/ Copyright American Rental Association
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