Each and every fall season seems to come and go so quickly. The end of the year is already a busy time, but throwing in next year’s planning and getting ready for tradeshows makes it a whirlwind. 2015 was a strong year for Chicago Pneumatic and it’s hard to believe that it’s already winding down. Tradeshows are on the horizon and while each and every show that CP attends is important, for us, one stands out over the rest of them: The American Rental Association’s (ARA) Rental Show.
Each tradeshow is special and unique. The year typically starts out for us, as well as many other manufacturers, in Las Vegas for World of Concrete (February 2-5). Shortly after though, we always rev up for The Rental Show that takes place a few weeks later in Atlanta (February 21-24). It’s our biggest show and one that we roll out the red carpet for — in our case, quite literally (our booth is designed with red carpet). The rental industry has been so good and so crucial for CP that we like to pay it forward and are one of the few Platinum sponsors for the show, which is the highest contribution level.
The equipment rental industry is gaining momentum and the forecast is looking strong for the next five years in the U.S. According to the ARA, the growth rate exceeds 7 percent through 2018 and is on track to reach record revenue of $38.3 billion in 2015. The total revenue projections for the next five years are 7.3 percent in 2015 with growth of 7.8 percent next year, 7.3 percent in 2017, 7.4 percent in 2018, and 6.5 percent in 2019 to reach just over $50 billion.
The ARA Rental Market Monitor revealed that rental companies are forecasted to invest $12.6 billion this year in equipment, increasing to $13.5 billion in 2016 and $14.1 billion in 2017. Investment as a share of revenue is expected to be more than 32 percent for each of the next three years. If this was not already evident to us through our own numbers, there certainly is a feeling of reassurance to see such a great forecast over the next half decade.
Personally, I have been involved in the rental industry from the start of my career and Chicago Pneumatic has had a presence at The Rental Show for decades. The show connects us with independent rental companies that make up the core of our business. Our customer base recognizes that CP gives them the ability to compete in any market. The Rental Show is a great time to meet our existing customers and add new customers in the span of only a couple of days’ time. Our team rarely has downtime during the show — they are so involved in this event. We hit the ground running from the time the show floor opens as we talk and sell to both current customers and prospective ones.
Our annual sales meeting takes place in this time period too — each year it’s held the Sunday before The Rental Show begins. It’s always a nice evening and one I look forward to. It’s great to have our team and representatives together in one room. The meeting begins with a discussion of the previous year’s results as well as what’s in store for the coming year and is followed by announcing our awards for both our internal and external team. The meeting stirs up great conversations and makes abundantly clear how much our dealers and core team care about the CP brand and want it to succeed. I have to say that it’s a very satisfying and rewarding feeling.
Planning for The Rental Show 2016 in Atlanta has commenced and CP will look to keep its momentum high throughout the show. It took a few years, but the rental and construction industries feel like they are back and in great shape for years to come. It is a busy time out there with construction projects everywhere you look. That is a positive and promising sign for all of us.
From all of us at Chicago Pneumatic, thank you for your continued support.