FIND A CONTRACTOR BUYER'S GUIDE
BECOME AN INDUSTRY PARTNER
MCAA Logo
MEMBER LOGIN JOIN
NEWS
Join Us For The 75th Anniversary Midyear Meeting Sep 7-11 ↗

American Rental Association Rental Penetration Index up to 53.9%

Words: Chris ColemanThe Construction/Industrial rental penetration is up 100 basis points in 2014 from 52.9% in 2013 to 53.9% for the most recent reporting year according to the American Rental Association (ARA) Rental Penetration Index™. ARA released the 2014 ARA Rental Penetration Index at The Rental Show in New Orleans, La. “Rental penetration continues to increase in conjunction with strong growth in rental revenues in 2014,” says John McClelland, ARA vice president for government affairs and chief economist.

ARA’s Rental Penetration Index measures the proportion of the total fleet of construction machines that are owned by equipment rental companies. The index is value-based and uses original equipment cost as the primary weighting factor to calculate the ratio of rental equipment value to total fleet value. ARA and their research partner IHS Economics developed the ARA Rental Penetration Index to provide another measure of rental industry performance. The Index uses information from the U.S Department of Commerce Current Industry Reports along with an aggregate estimate of the Financial Utilization metric provided by Rouse Analytics. “Using this information and the ARA/IHS estimates of rental revenue for the construction-industrial segment of the U.S. equipment rental industry allows IHS to consistently estimate rental penetration over time,” adds McClelland.

The 2014 ARA Rental Penetration Index marks the fifth straight year of growth since the dramatic dip in the index between 2008 and 2009. That dip was attributed to the nimble action equipment rental companies took when the financial crisis significantly reduced construction activities that drive equipment demand. Since 2009 rental penetration has continued to increase largely due to the growing demand for equipment in the construction-industrial segment coupled with tight credit conditions and the increasing costs of buying new Tier IV equipment that have made it difficult for contractors to rebuild their fleets after the financial crisis. “One of the biggest questions going forward is if the secular shift away from equipment ownership by end users toward rental continues,” says McClelland. “If 2014 is any gauge, there is still room for rental penetration to continue to increase and as the economy continues to grow this means more demand for rental equipment; a double-barreled boost to the equipment rental industry,” adds McClelland.
 0
Vibing Masonry #8: CMU’s Durability and Maintenance Value
September 2025

Heading to Spokane, WA, I found myself riding the airport tram at O’Hare in Chicago. Looking out the window at a part of the 26-year-old International Terminal 5, I spotted a painted structural steel beam in front of a concrete masonry unit (CMU) wall. Th

Steve Blye
Technical Talks
Read More
Keeping it Clean: Lifecycle Maintenance for Manufactured Stone Veneer
September 2025

One of the many benefits of manufactured stone veneer is that it’s a robust, durable product that requires little maintenance over the course of its life span. In fact, its irregularity in shape and color helps hide minor dirt and dust. But like any build

Jeff Tew
Technical Talks
Read More
Government Affairs: Dignity Act Is Back and So Are Our Marching Orders!
September 2025

The Dignity Act is back! Congresswoman Maria Salazar (R-FL) and Congresswoman Veronica Escobar (D-TX) have re-introduced the Dignity Act, their comprehensive border security and immigration law reform legislation and we need to hit the ground running to

Stephen Borg
Legislative
Read More
Marvelous Masonry: Inveraray Castle
September 2025

Inveraray Castle, one of Scotland’s most iconic Gothic Revival structures, rises from the banks of Loch Fyne like a monument to stonework itself. For masonry contractors and material suppliers, the castle serves as a working model of 18th-century craftsma

Cass Stern
Marvelous Masonry
Read More