Stoney Creek, ON, February 7, 2022 – Equipment rental revenue in Canada is estimated to have increased 9.2% in 2021 to $5.3B according to the latest forecast released by the Canadian Rental Association, a downward revision from the Q3-2021 forecast. This downgrading is partly attributed to historical data revisions to the industry’s drivers, especially construction estimates.
This forecast, compiled by IHS Markit on behalf of CRA, shows the industry will continue to grow 7.4% in 2022, surpassing the pre-pandemic peak of $5.6B in 2019, before returning to 2-3% annual growth in the longer term. By 2025 the Canadian equipment rental industry should surpass $6.3B.
Nathalie McGregor, CEO of the Canadian Rental Association says the forecast shows that two years in the effects of pandemic related public health measures on the event and equipment rental industry are still being felt in Canada. “We continue to see positive signs for the equipment market, in particular growing demand for non-residential construction,” says McGregor. “If measures are eased over the next few months we should see a robust uptick on the event side as well.”
The construction and industrial equipment rental sector is estimated to have grown by 8.2% in 2021 to $4.1B. The growth is supported by improving industrial production, rising oil sands investments and improvement in the construction sector. Growth of about 5% in 2022 will allow the sector to surpass the 2019 pre-pandemic revenue peak. Rental revenue in this sector will exceed $4.7B by 2025.
General tool rental revenue is estimated to have increased by 10.1% in 2021, wiping out the 8.3% decline seen in 2020 to set a new high point in rental revenue of $1.1B. Moderating growth in residential construction and cooling of the housing market will yield lower growth rates in the coming years. By 2025 rental revenue in this segment will reach $1.2B.
Tent and event rental revenue was profoundly impacted by the pandemic, with 2020 revenue falling 64%. As the country began reopening, revenue for this sector is estimated to have increased 35% in 2021 and will rise further 94% in 2022. An upward revision to the forecast partially reflects higher prices in the economy. The 2022 revenue of $300M will still be 6% below the pre-pandemic levels of 2019 assuming that public health measures are relaxed heavily throughout the year. By 2025, tent and even revenue should reach $340M.
The forecast predicts that the highest growth in 2022 will be primarily seen in Alberta, Saskatchewan, and the Atlantic provinces, as the rest of the country begins to return to more typical levels of growth.
About CRA: (crarental.org) The Canadian Rental Association, Stoney Creek, ON., is the leading trade association for event and equipment rental businesses in Canada. CRA advocates on behalf of its members to government, regulators, and other stakeholders, and provides industry insights, best practices, education, and networking opportunities.