“Sustained growth” predicted for Canadian rental industry

Photo: Canadian Rental Association

The Canadian Rental Association (CRA) has forecast “sustained growth” in Canada’s equipment rental industry, with equipment rental revenue to rise by 7.6% in 2024, reaching $8.2 billion (€7.7 billion).

It predicts a further 6.8% increase in 2025, which CRA said aligns with economic improvements and sectoral growth.

It added that the industry has been bolstered by a steady economic environment and gradual improvements in construction and industrial activity, despite a modest real GDP growth of 1.1% in Canada’s economy.

However, it expects key trends in population growth, consumption and easing borrowing costs to drive forward economic activity in the country.

Melanie Misener, executive director of the CRA, said, “The outlook for Canada’s equipment rental industry reflects a balanced growth trajectory that will benefit from continued strength in the construction and industrial sectors.

“As Canada’s economy stabilises, we expect steady demand across both residential and nonresidential investment, further fueling growth in equipment rentals.”

In terms of sectors, general tools is projected to see the highest increase, with a 10.3% increase in 2024 and 5.9% projected for 2025, reaching $1.5 billion (€1.4 billion).

Looking further ahead, CRA said that despite construction growth moderating in subsequent years, steady activity in non-residential construction will continue to support general tool rentals, pushing revenues to $1.7 billion (€1.6 billion) by 2028.

Meanwhile, construction and industrial equipment rentals is projected to finish 2024 at $6.3 billion (€5.9 billion), an increase of 7.0%, backed up by “strong non-residential construction growth, industrial production, and expanding oil sands investment.”

By 2028, revenues are expected to reach $7.4 billion (€7 billion) , which the CRA said reflects ongoing demand in construction and industrial activities.

Tent and event rentals are also set to grow this year at a rate of 7.4%, reaching $429 million (€406 million) by 2028. 

Beyond 2024, the CRA said Canada’s equipment rental industry is expected to grow steadily and will reach an estimated $9.5 billion (€8.9 billion) by 2028.

Construction and industrial equipment will continue to lead, it said, while general tool and tent rentals benefit from a stabilising economy.