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Jan 04, 2023 (Heraldkeepers) — The Party Equipment Rental Market study orders market information in view of market improvement and development boundaries, permitting the development way to be enhanced. It likewise stresses the principal sellers’ methodologies and piece of the pie in the particular market. The review follows a sound exploration strategic worldview that helps direction. It accumulates subjective and quantitative market information, as well as essential examination.

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The Party Equipment Rental Market concentrate on report recognizes and gathers fundamental and fluctuated kinds of market systems being developed. Besides, the examination report effectively combines acquisition by isolating center parts from the most encouraging business area. Also, the information figures huge contender information, assessment, and pieces of information to additional form R&D techniques. It additionally underlines significant factors like open doors, drive, item broadness, market outline, and main impetus.

This report centers about the top players in global Party Equipment Rental marketplace:

Allie’s Party Equipment Rental, Inc., Stuart Event Rentals, Party Rent Group, Bright Event Rentals, Peerless Events and Tents, Gervais Party Rentals, Diamond Event, Party Rental Ltd., Just Party & Equipment Rental, Party Equipment Rental Houston, Aztec Events, Twin Bear Party Rentals, AAA Rents and Events, Party People Rentals, Celebrations! Party Rentals & Tents, American Tool & Party Rental, BI Rental, Inc., Big D Party Rentals, Redi Rental, Taylor Events & Equipment Rental, Aurora Rents, Taylor Rental Party Plus, Sunbelt Rentals

Party Equipment Rental Market Classifies into Types:
Stage & Dance Floor
Lighting
Tenting
Dinnerware & Glassware
Bars & Accessories
Garden
Table and Chair
Others

Party Equipment Rental Market Segmented into Application:
Birthday Party
Wedding
Church Event
School Event
Corporate Event
Family Party
Others

Source

https://www.marketwatch.com/press-release/party-equipment-rental-market-outlook-and-forecast-to-2030-allies-party-equipment-rental-inc-stuart-event-rentals-2023-01-04?mod=search_headline

While the debate rages about whether or not the United States is in a recession, the American Rental Association (ARA) is predicting equipment rental growth in 2023. Following a steep two-year increase in revenues following the pandemic, the equipment rental industry expects increases through 2026—though less than 10%. These numbers come from an American Rental Association (ARA) forecast released in early November 2022.

Smaller Equipment Rental Growth Expected in 2023

Equipment rental revenue covers construction and industrial equipment and tools. They estimate the 2023 increase to fall around 3.4 percent, or more than $57 billion. Compare that to the steep 11% growth seen in 2022 ($55.8B).

After this, the ARA predicts somewhat smaller annual growth in equipment rental revenue. How small? Between 2.9 and 3.4 percent through 2026 until it reaches over $63 billion.

“In the current forecast we see a definite softening in rental revenue growth, but we do not see negative growth…The segment is forecast to show a 4 percent increase in 2023, 2 percent in 2024, and 3 percent in 2025 and 2026. On the general tool side, revenue growth was a more moderate 4.5 percent in 2021 and 6.2 percent in 2022 and is forecast to be 1 percent in 2023 and then 5 percent in 2024 and 2025 and 4 percent in 2026.”

John McClelland, Ph.D., ARA vice president for government affairs and chief economist

How This Affects Construction Investments

S&P Global Market Intelligence added some additional information regarding investments in construction and industrial equipment. They believe these investments will decline significantly in 2023. This matters after seeing astounding growth numbers of 55.1% and 40% in 2021 and 2022 respectively. They are forecasting the investment growth for 2024 and 2025 to fall around 4.8% and 6.4%.

“There is variability in the forecast, depending on the end markets rental companies serve. However, nonresidential construction spending will be strong, and money continues to be spent from government stimulus programs, which both are positives for the rental industry. In addition, the supply chain is improving, which can help alleviate the backlog of equipment orders, allowing equipment rental companies to expand inventory to meet demand, which adds to the positive outlook for the industry in 2023 and beyond.”

Tom Doyle, ARA vice president, association program development

Final Thoughts

Looking at these numbers, it does seem that while the equipment rental industry outlook remains largely positive, an economic slowdown due to a recession should yield a notable reduction in demand. While no one can truly predict the future, keep this in mind as you plan your projects moving into the next several years.

The American Rental Association (ARA) is the largest international trade association for owners of equipment and event rental operations and manufacturers and suppliers of rental equipment. As an association, they seek to advance the equipment and event rental community. With equipment rentals continuing to evolve, ARA employees and members work to build a strong future for the industry.

Source

https://opereviews.com/ara-predicts-equipment-rental-growth-in-2023/

After two years of rapid post-pandemic revenue growth in 2021 and 2022, the equipment rental industry is expected to settle into a steady pattern of single digit increases over the next four years according to the latest American Rental Association (ARA) forecast released in early November.

The forecast calls for equipment rental revenue — which includes the construction and industrial as well as the general tool segments — to increase by 3.4 percent in 2023 to nearly $57.7 billion after growth of 11 percent in 2022 to reach almost $55.8 billion.

In subsequent years, equipment rental revenue is expected to grow 2.9 percent in 2024, 3.3 percent in 2025 and another 3.4 percent in 2026 to reach nearly $63.4 billion.

“In the current forecast we see a definite softening in rental revenue growth, but we do not see negative growth,” says John McClelland, Ph.D., ARA vice president for government affairs and chief economist.

“The continuing growth in rental revenues over the forecast period is countercyclical to the forecast for the overall economy. I attribute the countercyclical economic behavior of the rental revenue forecast to the infusion of funds for infrastructure resulting from the passage of the bipartisan Infrastructure Investment and Jobs Act signed by President Biden on Nov. 15, 2021,” McClelland says.

“While this may be good for the equipment and event rental industry as a whole, the benefits will not be evenly distributed. For example, rental businesses that are focused primarily on the residential housing sector will have to adapt their focus and customer base due to forecasted declines in that sector,” he says.

The construction and industrial segment, according to S&P Global Market Intelligence, the forecasting firm that compiles data for the ARA forecast and the ARA Rentalytics™ subscription service, showed double-digit revenue increases in 2021 and 2022 at 10.2 and 12.7 percent respectively. The segment is forecast to show a 4 percent increase in 2023, 2 percent in 2024, and 3 percent in 2025 and 2026.

On the general tool side, revenue growth was a more moderate 4.5 percent in 2021 and 6.2 percent in 2022 and is forecast to be 1 percent in 2023 and then 5 percent in 2024 and 2025 and 4 percent in 2026.

“There is variability in the forecast, depending on the end markets rental companies serve. However, nonresidential construction spending will be strong, and money continues to be spent from government stimulus programs, which both are positives for the rental industry,” says Tom Doyle, ARA vice president, association program development.

“In addition, the supply chain is improving, which can help alleviate the backlog of equipment orders, allowing equipment rental companies to expand inventory to meet demand, which adds to the positive outlook for the industry in 2023 and beyond,” Doyle says.

Scott Hazelton, director, S&P Global Market Intelligence, agrees that the outlook for the equipment rental industry is positive but adds that a slowdown is coming with a recession and an anticipated reduction in demand.

“We had been forecasting something perilously close to a recession last quarter, and the evolution to a mild recession was not unexpected. What has been surprising is the resilience of the equipment rental industry in an economy that is not particularly strong, particularly in traditionally rental-intensive markets, such as nonresidential construction,” Hazelton says.

In addition, according to S&P Global Market Intelligence, investment in construction and industrial equipment now is expected to decline slightly in 2023 after growth of 55.1 percent in 2021 and 40 percent in 2022. Investment growth is forecast to be 4.8 percent in 2024 and 6.4 percent in 2025.

In Canada, equipment rental revenue also showed a post-pandemic boost of 15.8 percent in 2021 and 11.1 percent in 2022 to reach $4.6 billion. The same as in the U.S., revenue growth is expected to settle into a single-digit pattern over the next four years.

The ARA forecast calls for equipment rental revenue in Canada to increase by 1.6 percent in 2023, 4 percent in 2024, 5.3 percent in 2025 and 3.5 percent in 2026 to reach nearly $5.3 billion.

“On the whole, Canada’s outlook is very similar to that for the U.S., just a tad milder,” Hazelton says.

ARA survey shows rental markets have stabilized

Both equipment and event rental companies have reached a point of stability after almost three years of a pandemic-induced roller coaster ride, according to the latest economic impact survey conducted by the American Rental Association (ARA).

In answer to the question, “Would you say the situation for event rental is getting better, the same or getting worse?”, 50 percent of the event rental respondents said it was the same in the third quarter of 2022 while 44 percent said it was getting better. Only 6 percent said it was getting worse, the lowest number since ARA began the economic surveys in March 2020.

On the equipment rental side, 63 percent of the respondents said the situation for equipment rental is the same in the third quarter of 2022 with 26 percent saying it is getting better and 11 percent saying it is getting worse.

“I have been traveling the country visiting stores all year and these survey results are right in line with what I’m hearing from rental operators. Stores have made the necessary adjustments in pricing and continue to find operational efficiencies to meet the demand,” says Tony Conant, ARA CEO.

Survey respondents also are optimistic about the future. For example, 81 percent of the event rental ARA members who completed the survey expect revenue to increase in the fourth quarter compared to 19 percent that expect a decrease compared to last year.

Of those responding to the survey from the equipment side of the business, 71 percent expect revenue to increase compared to 29 percent who expect a decrease compared to last year.

“Despite several headwinds from inflation, rising interest rates, labor and supply chain issues, these latest survey results show that ARA member companies are generally meeting those challenges and forecasting increases,” says Tom Doyle, ARA’s vice president, association program development.

Event rental members also were asked about rental rates and 93 percent of the event rental respondents said they have increased rental rates in 2022 and three quarters of those who have not raised rates this year said they intend to.

The drivers for rate increases, according to the event rental survey respondents, were almost evenly split between increased labor cost (36 percent), increased fixed expenses cost (30 percent) and increased new inventory or supply purchasing cost (28 percent).

Source

https://www.ararental.org/Rental-Management/article/ArtMID/4195/ArticleID/1676/Equipment-rental-revenue-poised-to-continue-growth-in-2023-and-beyond

The U.S. equipment rental market is expected to record a value of US$68.52 billion in 2026, growing at a CAGR of 5.47%, for the time period of 2022-2026. The factors such as rise in party & event planning, growth in oil & gas production, rising employment and rapid urbanization would drive the growth of the market. However, the market growth would be challenged by tracking equipment utilization, processing equipment return and balancing portfolio and cash flow. A few notable trends may be include rising use of management software, continuous technological advancements and growth in government projects.

The U.S. equipment rental market is growing due to the expansion of the construction industry. There is a substantial growth in the number of rental service consumers as contractors and dealers are opting for rentals to reduce the size of their fleet and lower the complexity in organizations that may otherwise affect activities, namely, asset disposals, logistics, maintenance, and procurement. As there are growing number of infrastructure projects the adoption rate of rental services is rising, which is accelerating the growth of the equipment rental market in the U.S.

Market Dynamics

Growth Drivers

• Rise in Party and Event Planning
• Growth in Oil and Gas Production
• Rising Employment
• Rapid Urbanization

Key Trends

• Increasing Rental Penetration Rate
• Rising Use of Management Software
• Continuous Technological Advancements
• Growth in Government Projects

Challenges

• Tracking Equipment Utilization
• Processing Equipment Returns
• Balancing Portfolio And Cash Flow

Scope of the report

• The report provides a comprehensive analysis of the U.S. equipment rental market
• The market dynamics such as growth drivers, market trends and challenges are analyzed in-depth
• The market dynamics such as growth drivers, market trends and challenges are analyzed in-depth.
• The competitive landscape of the market, along with the company profiles of leading players (The Home Depot, United Rentals, Ashtead Group (Sunbelt Rentals), Herc Holdings, H&E Equipment Services and BrandSafway) are also presented in detail.

Key Target Audience

• Equipment Rental Companies
• Tools and Equipment Manufacturers
• Raw Material Suppliers
• Investment Banks
• Government Bodies & Regulating Authorities

Key Topics Covered:
1. Market Overview
2. Impact of COVID-19
3. The U.S. Market Analysis
4. Market Dynamics
5. Competitive Landscape
6. Company Profiles

Companies Mentioned

• The Home Depot
• United Rentals
• Ashtead Group (Sunbelt Rentals)
• Herc Holdings
• H&E Equipment Services
• BrandSafway

For more information about this report visit https://www.researchandmarkets.com/r/mq2h74

Source

https://www.businesswire.com/news/home/20221130005511/en/US-Equipment-Rental-Market-Report-2022-Rise-in-Party-and-Event-Planning-Drives-Sector-Growth—ResearchAndMarkets.com