Hire and Rental News - April/May 2015

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10 HIRE AND RENTAL NEWS • APRIL/MAY 2015
INDUSTRY NEWS
Overall, the American Rental Association
(ARA), through its ARA Rental Market
Monitor subscription service, forecasts
equipment rental industry total revenue
growth of 8.1% in 2015 to reach $38.5
billion in the US, including all three
segments – construction/industrial,
general tool, and party and event.
Construction/industrial rental revenue is
forecast to increase 8.5% in 2015 to
$26 billion, with general tool projected to
grow 8.3% to $9.9 billion and party and
event to show a 4.5% increase to
$2.7 billion.
“The equipment rental industry continues
to grow at a fast pace with strong
equipment rental demand within all
markets,” Christine Wehrman, ARA’s
executive vice president and CEO said.
“While the news focuses on the energy
sector of the economy, our industry is
fortunate to have a balanced marketplace
US equipment rental industry forecast to grow
A strengthened economy, growth in employment and lower gas prices at the pump,
generating increased disposable income, all spell favorable news for consumers as well as
the equipment rental industry in the United States.
in which rental is in demand and energy
represents only one of those markets.
Rental companies have always been
flexible in meeting customer demand by
adapting quickly to changing markets. The
industry growth forecast remains more
than double that of the overall economy.”
“The number of positive offsets in
commercial construction, multifamily
housing, healthcare and manufacturing
help to counteract the drop in oil prices
and contribute to the strong 2015 growth
projections for the equipment rental
industry,” Scott Hazelton, Managing
Partner, IHS Inc said. IHS is a global source
of information and insight and compiles
data for the ARA Rental Market Monitor.
Also, a decrease in oil prices does not
mean the energy sector growth stops.
“Natural gas and oil extraction growth
will likely be slower in 2015 and 2016, but
it is important to note extraction actually
increases, just at a slower rate, even with
lower oil prices,” Scott said.
Projected revenue increases for equipment
rental due to more direct and indirect
demand from the energy sector may be
lower now than previously expected, but
Scott said the other rising segments for the
equipment rental industry will remain a
positive factor for 2016 as well.
“IHS already had projected softness in the
energy markets in 2016, so the quick drop
in oil prices now presents less of a change
in the overall forecast for the equipment
rental industry,” Scott said.
The forecast for Canada calls for 3.7%
growth in 2015 to $4.1 billion, with growth
of 6.3% expected in 2016 to nearly
$4.4 billion.
“We continue to monitor our industry on
a quarterly basis to ensure our members
have the best information available,” Chris
Wehrman said. Visit:
According to Plant Assessor,
if you are involved in the
supply of equipment to
the mining and extractive
industries in NSW, you will
have encountered MDG15.
MDGs contain
comprehensive guidance
on specific safety issues
and are increasingly used
outside NSW where the local
jurisdiction does not have
definitive guidelines in the
particular area covered by
the MDG, Plant Assesor said.
MDG 15 (Guideline for
Mobile and Transportable
Equipment for Use in
Mines) sets out the safety
requirements for the design,
manufacture and operation
of Mobile and Transportable
Equipment for Use in Mines.
MDG15 was first published
in 1992, and revised in 1994,
Plant Assessor MDG 15 Assessment for mining industries
Plant Assessor has developed a special assessment purpose which incorporates the specific
additional requirements of MDG15 (Mining Design Guideline, a term coined by the Mines
Safety Regulator in NSW) over and above a standard Plant Assessor assessment.
1997 and 2002. Because this is a
special assessment purpose and
contains considerable additional
inspection items, Plant Assessor
said it has chosen to make it an
opt-in assessment purpose to
avoid any confusion among users
that have no need for MDG15
assessments.
Some of the questions in a MDG15
assessment will require reference
to OEM manuals, removing of
guards and covers, and in some
instances confirming certain
matters with the machine’s
manufacturer to ensure the
requirements are met.
The table developed by Plant
Assessor provides an overview
of the more detailed application
of existing PA requirements
and mine department specific
requirements.
Contact: 1300 728 852 or visit:
MDGs contain comprehensive guidance on specific safety issues