Due to the global health crisis many industries have faced incredibly trying times in 2020, and the equipment rental sector is not immune from this. With revenues down many companies are turning towards experts to forecast the oncoming 2021 year in hopes of good news. The American Rental Association recently put out a revenue forecast for the next two years based on analytics, and the results are encouraging.
Modest gains short term point to recovery
The ARA’s forecast points towards modest gains in the 2021 year, projecting growth of 0.3 percent. This may seem like a reason to worry for many business owners, it is, in fact, positive news. The numbers are projected relatively low because they take in to account the massive losses the industry suffered as a whole in 2020 due to the COVID pandemic. The modest growth indicates recovery from those losses, welcome news for equipment rental sector.
Accelerated growth beyond
The ARA’s forecast indicated that beyond next year the growth would accelerate as recovery solidifies. The industry as a whole is expected to experience growth of over 9% in the 2022 year, with construction and industrial rentals expected to recover with a staggering 11% growth, even after another down year in their 2021 forecast. After total investment in equipment rental dropped 43% this year, projections indicate that by 2022 investment will rebound to over 14 billion dollars.
Monitor your health in Rental360
Rental360, built in the Acumatica framework, offers equipment rental companies key tools needed to diagnose and monitor the health of their business. Foremost among them are real-time dashboards, offering key analytics and insights across all aspects of a business. These ARA certified dashboards offer deep drill-in capability to users, as well as customization and personalized views. In addition to financial and accounting data these dashboards also provide users industry-specific information such as equipment utilization.
By choosing Rental360 to power their systems, equipment rental companies arm themselves with the tools needed to act upon the positive forecasts for 2021 and beyond, fueling recovery and growth.