ARA Calls for Repeal of Health Insurance Tax

The American Rental Association (ARA) applauded the action of a bipartisan group of members of Congress to highlight the six-month countdown to repeal a tax that will have a damaging effect on small businesses in the equipment rental industry and beyond.

Sen. John Barrasso (R-Wyo.), Sen. Orrin Hatch (R-Utah), Rep. Charles Boustany (R-La.) and Rep. Jim Matheson (D-Utah) joined small business owners from across the country and members of the Stop the HIT Coalition for a press conference to urge repeal of the health insurance tax (HIT) within the Patient Protection and Affordable Care Act (PPACA).

The Stop the HIT Coalition is a broad-based group representing the nation’s small business owners, their employees and the self-employed that advocates for the repeal of the HIT. ARA is a Stop the HIT Coalition member.

“The HIT puts up roadblocks to small business growth and job creation, and will ultimately have a negative effect on hardworking families,” says John McClelland, ARA VP of government affairs. “With six months left until this tax goes into effect in 2014, it is encouraging to see our bipartisan leaders in Congress raise the urgency around the need to fix this problem before it is too late.”

Billed as a fee on insurance companies that sell policies on the fully insured market, the Congressional Budget Office has said consumers can expect to see the cost of the health insurance tax passed on in the form of higher health insurance premiums. One estimate predicts the HIT, which takes effect next year, will cost the average family $500 a year.

Small businesses would be acutely affected by the HIT, as 88 percent purchase health insurance policies that would be subject to the tax.

The four sponsors of bipartisan legislation to repeal the HIT participated in the event to draw awareness to the impending implementation of the damaging tax. The two companion bills – S. 603 and H.R. 763 – together have more than 240 bipartisan cosponsors.

Rental Revenue to Top $38 Billion in 2013

The equipment rental industry in the United States is expected to generate $33.6 billion in revenue in 2013, according to the American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor, updated in May. This figure represents a 7.3 percent increase over 2012, with revenue growth reaching 7.9 percent in the fourth quarter according to the latest quarterly forecast.

In the U.S., the construction market and consumer spending are expected to be the most important drivers of growth of the equipment rental market in 2013. “The U.S. equipment rental market is expected to continue its upward trajectory and show significant growth through 2017. Strong growth in real residential construction through 2015 will fuel the construction and industrial equipment segment, which is projected to grow 9.8 percent in 2014 and 11.8 percent in 2015,” according to the U.S. economic analysis from the ARA Rental Market Monitor.

In Canada, the equipment rental industry is forecast to generate nearly $4.6 billion in revenue in 2013, a 3.1 percent increase. In total for North America, equipment rental revenues in 2013 are expected to reach $38.2 billion.

By the end of the current five-year forecast in 2017, North American equipment rental revenue is expected to surpass $50 billion to reach $51.6 billion, with U.S. rental revenue at $46.3 billion and rental revenue in Canada at $5.3 billion.

“The industry continues to build customer demand, which drives the growth of the equipment rental industry. Listening to ARA members from around the country and looking at the forecast of IHS Global Insight, there is unlimited potential for the equipment rental industry,” says Christine Wehrman, ARA’s executive VP and CEO.

“Rental has grown during the anemic economic recovery through increased penetration. As industrial and construction markets continue to improve, rental will see further growth from a larger share of the equipment market, leading to double-digit revenue gains by 2014,” says Scott Hazelton, a senior partner with IHS Global insight, which compiles data and analyses for the ARA Rental Market Monitor.

The ARA Rental Market Monitor is a subscription-based service for American Rental Association (ARA) members provided by ARA and Rental Management as part of a partnership with ISH Global Insight, an economic forecasting firm based in Lexington, Mass.

'Rental Show' Named One of 50 Fastest-Growing in U.S.

The Rental Show was No. 24 on the TSE Fastest 50 list ranked by percentage of growth in total attendance. This ranking is based on The Rental Show 2011 in Las Vegas, which had an increase in attendance of 22 percent over 2010. The Rental Show has attained a prestigious ranking – being named among the fastest-growing trade shows in the U.S. by Trade Show Executive (TSE) magazine. In addition, The Rental Show is among the trade shows on the TSE Gold 100 list of the largest U.S. shows in terms of exhibit space.

“While the core purpose of The Rental Show is to connect the rental industry through the trade show, education and networking, receiving recognition for the Show’s growth is a great honor,” says Allison Box, senior administrative director for association services at the American Rental Association. “The Rental Show 2011 was a terrific show for the entire industry, with such an optimistic atmosphere in addition to the increased attendance. Everyone who attended and exhibited played a role in The Rental Show achieving these awards.”

Earlier this year The Rental Show 2011 was rated No. 99 on the Trade Show News Network Top 250 Trade Show rankings of the largest shows in the U.S., based on net square footage of exhibit space.

The Rental Show 2011 was Feb. 27 through March 2 at the Mandalay Bay Convention Center in Las Vegas. The trade show occupied 219,400 net square feet of exhibit space. There were 610 exhibiting companies.

For 2013, The Rental Show returns to Las Vegas – but to a new venue, The Sands Expo and Convention Center. Complete details on the Feb. 10 through 13 event are at TheRentalShow.com.

Wynne Systems Achieves ARA Rental Market Metrics Certification

Wynne Systems, Irvine, Calif., is the first software company serving the equipment rental industry to achieve ARA Rental Market Metrics certification from the American Rental Association (ARA).

ARA Rental Market Metrics provides equipment rental companies with a consistent way of calculating, benchmarking and reporting critical performance measures. It defines industry standards for the definition of a day, original equipment cost (OEC) and for the calculation of time or physical utilization of equipment, financial utilization, fleet age and percentage change in period-over-period rental rates.

“The ARA has been working with software companies to license and certify the use of ARA Rental Market Metrics to further the growth and professionalism of rental companies within the industry and help analysts and financial institutions better understand the equipment rental industry," says Christine Wehrman, ARA’s executive VP and CEO. “It is a priority of ARA to make this business management intelligence available to rental businesses of all sizes."

Equipment rental industry software providers continue to be licensed for ARA Rental Market Metrics. ARA Rental Market Metrics provides equipment rental companies a way to measure the performance of their business with a common benchmark that can be used within the company, by industry professionals, investors and analysts to compare a company’s performance over time and in relationship to a competitor.

ARA Foundation Awards 29 Scholarships

Twenty-nine students’ educational goals just became a little easier to achieve, thanks to the $54,500 worth of ARAFoundation and affiliate scholarships awarded for the 2012/2013 academic year, including the new Bill Loomer Houston Rental Association Scholarship and the ARA of California Scholarships. The recipients are selected by the ARA Foundation scholarship committee.

“The winners, who were selected during an anonymous screening of applications, were awarded these scholarships based on their academic success, leadership, rental industry involvement, written essays on rental-related questions and references,” says Jenni Venema, ARA Foundation director of development. “Many received multiple scholarships, ranging from $500 to $3,000, which will go a long way in helping them pursue their education related to the equipment rental industry.”

The ARA Foundation scholarships and their recipients include:

The Leonard Hawk Founders Scholarship — the ARA Foundation’s top scholarship worth $3,000

·         Daniel Imbro of Party Time Rental and Events in Little Rock, Ark.

ARA Foundation Undergraduate Scholarships of $2,000 each

·         Tyler Arlinghaus, Art’s Rental Equipment in Newport, Ky.

·         Whitney Brumley, Avalon Tent & Part/Avalon Tent Manufacturing, Anaheim, Calif.

·         Melanie Cougle, Perfect Party Place in Bowmanville, Ontario, Canada

·         Nathan Creighton, Pleasanton Rentals, Pleasanton, Calif.

·         Cameron Dupy, American Party Rental, Austin, Texas

·         Erick Helfmann, A-1 Lansing Rent-All, Lansing, Mich.

·         Charles Jones, Rent-All Center in Alexandria, Va.

·         Jacob Kanis, Nelson Agri-Center True Value, Viroqua, Wis.

·         Patrick Kennedy, AA Rental Center in Melrose Park, Ill.

·         Laura Snell, NJS Design Event & Party Rentals in Clinton, Ontario, Canada

·         Christopher Whitesell, Rental Supply d/b/a Grand Rental Station, Greensboro, N.C.

ARA Foundation Undergraduate Scholarships of $1,000 each

·         Grant Christopher, Christopher Equipment, Tullahoma, Tenn.

·         Austin Goeman, JK Rentals, Kewaskum, Wis.

·         Logan Hart, Bootheel Parts & Equipment Rentals, Poplar Bluff, Mo.

·         Bryan Licata, Four Season Power Equipment, East Meadow, N.Y.

·         William Meier, Aerial Rental, Boise, Idaho

·         Jordan Ramkey, Walker-Lewis Rents, Bakersfield, Calif.

·         Scott Rodgers, Rodgers Rental, Centralia, Mo.

·         Peter Van Staveren, Stayner Rental, Stayner, Ontario, Canada

ARA Foundation Technical/Vocational Scholarships of $1,000 each

·         Luther Bender, Table 4 Décor Party Rental and Design, Rapid City, S.D.

·         Justin McConnell, Pioneer Equipment Rental & Sales, Newcastle, Okla.

ARA Foundation Graduate Scholarship of $2,000

·         Melissa Blanchard, Rentals Unlimited, Stoughton, Mass.

The Foundation also administers scholarships for affiliated rental organizations, including the following:

ARA Insurance Scholarship worth $2,500

·         Charles Jones, Rent-All Center, Alexandria, Va., who also received an ARA Foundation undergraduate scholarship and an ARA Region Two/Ron Marshall scholarship. He received a total of $5,000 in scholarship funds.

ARA of California Scholarships worth $1,000 each

·         Nathan Creighton, Pleasanton Rentals, Pleasanton, Calif., who also received an ARA Foundation undergraduate scholarship for a total of $3,000 in scholarship funds.

·         Jordan Ramkey, Walker-Lewis Rents, Bakersfield, Calif., who also received an ARA Foundation undergraduate scholarship for a total of $2,000 in scholarship funds.

ARA of Michigan Scholarships worth $500 each

·         Eric Helfmann, A-1 Lansing Rent-All, Lansing, Va., who also received an ARA Foundation undergraduate scholarship for a total of $2,500 in scholarship funds.

·         Michelle Wormser, Barry’s Let’s Rent It, West Bloomfield, Mich.

ARA of North Carolina worth $1,000

·         Christopher Whitesell, Rental Supply d/b/a Grand Rental Station, Greensboro, N.C., who also received an ARA Foundation undergraduate scholarship for a total of $3,000 in scholarship funds.

ARA of Ohio Scholarships worth $1,500 each

·         Jessica Ahrns, Celina Tent, Celina, Ohio

·         Marshall McMillin, Art’s Rental Equipment, Dayton, Ohio

·         Amanda Miller, Alladin Rents for Special Events, Eastlake, Ohio

Bill Loomer Houston Rental Association Scholarship worth $1,000

·         Cameron Dupy, American Party Rental, Austin, Texas, who also received an ARA Foundation undergraduate scholarship and a Texas Rental Association scholarship. He received a total of $4,000 in scholarship funds.

Dorothy Wellnitz Scholarship awarded by the Canadian Rental Association worth $1,000

·         Melanie Cougle, Perfect Party Place, Bowmanville, Ontario, Canada, who also received an ARA Foundation undergraduate scholarship for a total of $3,000 in scholarship funds.

Doug Mitchell Scholarship awarded by the Canadian Rental Association worth $1,000

·         Laura Snell, NJS Design Event & Party Rentals, Clinton, Ontario, Canada, who also received an ARA Foundation undergraduate scholarship for a total of $3,000 in scholarship funds.

Ron Marshall Scholarship awarded by ARA’s Region Two worth $500

·         Charles Jones, Rent-All Center, Alexandria, Va.

Texas Rental Association Scholarships worth $1,000 each

·         Walter Burke, 4-B Rental Source d/b/a Taylor Rental, Wylie, Texas

·         Cameron Dupy, American Party Rental, Austin, Texas

·         Darby Slack, Tejas Equipment Rental & Sales, McAllen, Texas