CRA forecasts significant growth in equipment rental industry
Canadian Rental Association expects nearly double-digit increase this year.
The most recent quarterly forecast by the Canadian Rental Association (CRA) suggests that the event and equipment industry in Canada will grow nearly 10 per cent this year, reaching almost $5.4 billion.
The industry is expected to grow another 7.9 per cent next year when it will surpass the pre-pandemic peak of $5.6 billion, set in 2019. The equipment rental industry should top $6.3 billion by 2025, the report predicts.
Nathalie McGregor, CEO of the Canadian Rental Association, says the pandemic brought the “tent and event rental segment to the brink of collapse while simultaneously fueling growth in the general tool and construction segments.”
For instance, tool rental revenue is forecast to rise 11.4 per cent and reach a new high of $1.1 billion this year. That’s in stark contrast to the 8.3 per cent decline in the market in 2020. By 2025, this market is expected to top $1.2 billion.
Similarly, the construction and industrial equipment rental sector will grow by 8.5 per cent this year, reaching $4.1 billion. Factors behind this growth include improved industrial production, rising oil sands investments and improvement in the construction sector. An anticipated further 6 per cent growth next year will drive the sector above the 2019 pre-pandemic peak. By 2025, the market will be worth nearly $4.8 billion.
The report suggests that this growth will mainly be spurred by British Columbia, Ontario and Quebec, each of which will experience double-digit revenue increases. The Prairie and Atlantic provinces, meanwhile, should see more modest growth rates.