Friday Roundup: ARA forecast | Aggreko in the Americas | Pearson retires

News for the week of August 15-21, 2024 included the latest forecast from the American Rental Association (ARA) reflect downgraded growth predictions for the remainder of the year, while Aggreko reported North American revenues up 16% in the second quarter.

The ARA is forecasting slower growth this year for equipment rental in the US and Canada, according to an updated report released this week. General tool rental in the US saw the largest fall, while construction remains stable.

According to the ARA, construction and general tool rental in the US will now see an 8.9% increase in revenue in 2024, totaling $78.7 billion and 5.3% growth in 2025.

Construction and general tool rental in the US will now see an 8.9% increase in revenue in 2024, totaling $78.7 billion and 5.3% growth in 2025. (Photo: ARA)

This is a decrease from the ARA’s projection in the previous quarter that revenue would rise 9.7% this year, totaling $79.2 billion.

Power and temperature control specialist Aggreko reported high growth in the Americas and Asia Pacific in the second quarter of the year, with sales up between 16% and 27% in the regions.

Revenues in North America rose by 16% to US$462 million in the three months to June 30, driven by increased activity in petrochemicals and refining as well as building services and construction.

There was a 27% increase to $211 million in Latin America – driven by oil and gas, mining and utilities – while the 16% increase in Asia Pacific to $153 million was the result of data centre power demand in Japan, Indonesia and Thailand, along with mining in Australia and shipping-related work in Singapore.

In other news, Phoenix, US-based WillScot Holdings Corporation reported a moderate increase in revenues for the second quarter of 2024.

Revenues for the portable accommodation and storage specialist increased by 4% to $604 million on the same period in 2023, while adjusted EBITDA was $264 million, up 1%.

The company said it had seen a mixed environment in the quarter, with a drop in demand from smaller, more transactional commercial construction and interest rate sensitive sectors.

Meanwhile in OEM news, Caterpillar Inc. has broken ground on a major expansion at its US-based large engine facility located in Lafayette, Indiana. The multi-year $725-million capital investment in the site had been previously

Expansion of Caterpillar’s new 16-million-sq.-ft. manufacturing facility will increase capacity for both new engines and aftermarket parts. (Photo: Caterpillar)

reported.

The expansion of the 1.6-million-sq.-ft. manufacturing facility will increase capacity for both new engines and aftermarket parts.

Construction of a new 300,000-sq.-ft. building will allow the company to expand its ability to build and test new engines and gen-set packages, and provide aftermarket components by expanding the campus’ footprint, refurbishing equipment and investing in additional equipment.

The expansion project represents the largest investment in Lafayette since the facility opened in 1982. 

In personnel happenings, UK-based Star Platforms announced the retirement of longstanding access industry professional Andy Pearson, with a career spanning over 30 years.

UK-based Star Platforms announced the retirement of longstanding access industry professional Andy Pearson, with a career spanning over 30 years. (Photo: Star Platforms)

The company paid tribute to Pearson and said he had been instrumental in shaping the sector.

Pearson’s journey in the rental industry began at Chislett Tool Hire, before he moved on to roles at Stephens and Carter and Key Scaffold in 1993, where he specialized in the Aluminium Tower Division.