Positive Outlook for Equipment Industry Growth in 2018
There has been a consistent trend in reports and surveys about projected growth in the equipment industry for 2018. Whether it’s from a sales or renting perspective, those in the industry have all weighed in to say they have a positive outlook for the industry.
For example, from a capital standpoint, Construction Dive reported there has been increased investment from companies in construction technology. As we see increased use of mobile, acceptance of the cloud, and presence of technology such as Building Information Modeling (BIM), investors are viewing this industry as a profitable space in the future.
Data from CB Insights even estimated that the construction-technology sector obtained $443 million in funding across 56 deals this past year. Collaboration software is seeing the most frequent amount of investment in the industry with frontier technology like robotic bricklayers and drones coming in second. Here’s a deeper look into the other areas of construction receiving investment.
Farm Equipment has also reported a positive outlook on the industry following a survey of 229 agriculture machinery dealers across the United States and Canada. In 2012, 55% of dealers expected revenues from the sales of new farm machinery to increase the year ahead. However, by 2015, less than 20% held out hope for improved business levels in the coming year. Now, for 2018 an optimistic outlook has increased again to 46.5% compared to the 22.4% for 2017.
Other highlights from the survey include:
This outlook has also translated to the equipment rental space as reported by Total Landscape Care. According the American Rental Association’s five-year forecast, the compound annual growth rate (CAGR) between 2017 and 2021 will be 4.7% in the United States. That would result in a total revenue of $59.3 billion in 2021.
Additionally, the report estimated the total rental revenue in the United States is expected to grow by 4.5% in 2018 to reach $51.5 billion, 5.5% in 2019, 4.9% in 2020 and 4.1% in 2021.
What are your predictions for the industry in 2018? Leave your thoughts in the comments below!