Rental Equipment Industry Outlook Looks Positive for 2019
If the recent American Rental Association (ARA) trade show, which was held this past month, is any indication of the economic outlook for the rental equipment and heavy Off-the-Road (OTR) vehicle marketplace, then 2019 is truly shaping up to be a banner year. According to The Rental Show event organizers, new performance and trend indicators from the annual show portends a robust forecast for rental equipment growth, and strong overall continued sales within the category.
As reported in the ARA’s trade periodical, Rental Pulse, the February show reflected “the image of a strong and growing equipment and event rental community,” with “many exhibitors (having) reported strong sales (and) meeting goals that reflected their expectations.” The ARA Rental Show is known as a serious “order writing” show, where attendees don’t just look and browse, but come to the show floor ready to evaluate new available equipment and technical solutions to advance profits, jobsite functionality, and their operational bottom-line—and they typically come prepared to purchase. For this reason especially, a forward-looking mood on the show floor often translates into subsequent tangible growth in the industry.
This is positive and welcome news for Carlisle TyrFil, the market’s leading provider of tire flatproofing technology, commonly referred to in the industry as foam fill —and our extended family of dealers, OEMs and international distributors. The rental equipment marketplace plays a significant role in supporting the heavy equipment needs of the construction, mining and agribusiness fields—the core industries that Carlisle’s complete, end-to-end line of tire productivity solutions is specifically designed to serve.
For more than 40 years, Carlisle has been proud to offer a comprehensive, reliable line of products to support OTR operators whose overall success literally depends on their OTR equipment remaining safe and functional. A pivotal part of effective operation rides on the ability to ensure that OTR tires are flatproof at all times. Not only can an unexpected tire flat or blowout bring field production to an immediate halt, but it poses serious dangers to driver safety—and can hasten wear, tear and premature denigration to costly OTR equipment. Carlisle’s market-leading TyrFil™ Flatproofing solution injects polyurethane fill into pneumatic tires to ensure that expensive OTR tires remain “flat-free” and immune to work-area debris and other material that can impede a busy production schedule. TyrFil™ enables OTR vehicles to easily glide over the sharp rocks, nails, glass and rebar—often found on construction, mining and waste management job sites—without incident.
The trends and market indicators coming out of this year’s show build on the rosy forecasts of the past several years—and bode well for continued positive projections. According to Rental Pulse, the “U.S. equipment and event rental revenue is expected to grow another 4.8 percent in 2020, five percent in 2021 and 4.8 percent in 2022 to reach $64.4 billion.” Moreover, the ARA anticipates that the North American industry will surpass $61.5 billion in 2019 alone—and hit $70.9 billion by 2022. The global market category is additionally projected to hit a milestone $230 billion in USD by 2025 (according to Grand View Research, Inc.).
There are myriad factors contributing to the health of the marketplace, including:
- Escalating infrastructure improvements needed on the global level (and the accompanying increase in development);
- The continued surge in residential and commercial construction in the pipeline that has accompanied fast-paced worldwide urban expansion (witnessed especially in emerging markets in the Asia-Pacific, Latin America and Eastern European regions);
- The increase in competition brought on by a flood of new entrants to the category (that further stimulates the overall marketplace);
- And, the overall positive impact of the U.S. Tax Cuts and Jobs Act (on the domestic industry), among a series of other factors that have helped to sustain a growth climate for the rental equipment category.
As these and other changes propel the industry forward, Carlisle and its aftermarket dealers, OEMs and distributor network remain committed to delivering the complete, 360-degree OTR tire productivity solutions that have become a hallmark within the industry. As the industries central to our business continue to evolve at lightening speed, we are pleased to offer the innovative technology to help operators to better keep pace and ensure that their growing jobsites remain safe and efficient.