Equipment rental industry grew 4% in 2021 in AN
North American equipment rental industry revenue grew about 4% in 2021, year over year, United Rental said, based on estimates from the American Rental Association (ARA).
United Rentals is the world’s largest equipment rental company, operating in the United States and Canada and with a limited presence in Europe, Australia and New Zealand.
In 2021, the company’s rental income increased 14.9% year over year, including the impact of the acquisition of General Finance, which was completed in May 2021.
The increase in revenue includes the significant impact in 2020 from Covid-19, which resulted in decreased rental volume in response to shelter-in-place orders and other market restrictions.
As a result, United Rental’s estimated market share in North America of approximately 15% in 2021 increased from 14% in 2020.
Looking ahead in 2022, based on its analysis of industry forecasts and macroeconomic indicators, United Rental expects a continuation of the market recovery experienced in 2021, following a market downturn in 2020, which included the pronounced impact of Covid-19. .
Specifically, the company forecasts North American industry equipment rental revenue to increase approximately 10% in 2022.
According to ARA estimates, revenue from this North American industry in 2020 fell about 12% year over year, with similar declines in the United States and Canada.
In 2020, the company’s full-year rental income decreased 10.3% year over year.
It estimates that its North American market share of about 13% increased slightly in 2020.
The decline in rental income includes the impact of the novel coronavirus, which resulted in decreased rental volume in response to shelter-in-place orders and other market restrictions.
In 2021, based on its analysis of industry forecasts and macroeconomic indicators, the company expects a modest market recovery after the declines experienced in 2020, which included the pronounced impact of Covid-19.
Specifically, the company expects North American industry equipment rental revenue to grow about 2%, with higher growth expected in Canada than in the United States.