04.03.2009

IPAF publishes US market report

IPAF has published its first US Powered Access Rental Report 2008 in conjunction with the American Rental Association and research consultants IHS Global Insight.

The report attempts to look back at the market with particular focus on growth since 2005 with most detail on the year just past. It shows that Aerial work platform related rental revenues in the USA reached $8.8 billion in 2007, dropping back three percent to US$8.5 billion in 2008.

The report also estimates that the aerial lift rental business in the US equates to around 35 percent of total rental company revenue in the construction and industrial equipment markets.
While not being specific the report estimates that the market will decline a further 10 percent in 2009, reaching $7.7 billion.

The IPAF US Powered Access Rental Report is the result of a project to gather specific data on the powered access industry and to provide the industry with solid consistent data. The report also predicts that the current US recession should end by late 2009, with shifts in the industry as residential and non-residential construction spending switch roles.

A broad recovery in aerial lift rental revenues is not expected to take place before 2011. However, on a positive note, most of the major economic and construction spending indicators show markets stabilising in 2010 and then growing strongly after that.

One factor that has been hard to calculate is the suggestion that the current recession will boost the rental industries penetration of the equipment market, as contractors take the less risky option of renting rather than buying.

The report also concludes that recent trends in specialisation and technical progress favour modern rental fleets compared to older owned equipment, leading to a higher propensity to rent equipment.
Thus, while the recession will lead to reduced demand for AWPs in the short term, rental penetration will remain resilient and stay at high levels or even increase.

Another factor covered in this report is the fact that aerial lifts are used in a wide range of applications outside of construction, such as maintenance, seasonal work and trade/transportation applications. These major business segments will provide some buffer from the difficulties in the construction industry.

IPAF managing director Tim Whiteman said: “In a difficult situation, it is ever more vital to have facts and figures to make sound strategic decisions. IPAF’s activities are growing in North America and this groundbreaking report is part of the support that we offer to members.”

The IPAF US Powered Access Rental Report 2008 can be purchased for US$235 (IPAF members) or US$355 (non-members).

IPAF is also planning to publish the IPAF European Powered Access
Rental Report 2008, which is based on a similar research project in cooperation with the European Rental Association (ERA).

Both the US and European reports can be purchased at a special price of US$390 (IPAF members) or US$580 (non-members).
To purchase the reports, visit www.ipaf.org for details and the order form.

Vertikal Comment

A brief glance at the report suggests that it has been carefully and logically prepared and a useful guide to the industry. We hope to be able to include a full review of both reports in an upcoming Cranes&Access.