Despite hearing COVID popping up here and there it seems like life and business is getting back to pre-COVID levels. One thing I have missed is the industry gatherings that were cancelled or moved on line. I miss the back and forth and hearing about different industry trends – good and bad. Recently I had the chance to visit with an old lobbyist friend, John McClelland, Vice President and Senior Economist with the American Rental Association (ARA). John shared his thoughts below on the current state of the construction rental industry.
I am excited about the direction of the equipment and event rental industry for 2023.We continue to see significant revenue growth within the industry despite an economy that is surely slowing and may be headed for a recession. Some of the revenue growth is due to issues on the supply side of the industry. Equipment supply chains continue to be disrupted and this means rental companies are aging their fleets in order to meet demand but also raising rates. On the demand side, we are beginning to see funding from the infrastructure bill that passed last year be deployed. This is creating new demand for rental equipment and with many state budgets in surplus we do not expect this spending to be affected by a slowing economy.