The State of The Industry

International Alert Users

Association Conference

November 13 & 14, 2014

Tom Ross, Chairman/CEO

IHS Global Insights

• Largest forecasting company in the world

• Study sponsored/paid for by American Rental

Association

• Forecasts through 2018

• Data available online, quarterly, last update

10/28/2014

• Local data: 363 metro areas

• Only $100 for National Report +$100 for all

the metro areas in the 1st state.

Forecasting Accuracy:

Total Rental Revenue

2010

Forecast

2014

Forecast

%

Difference

2010

27,049

2011

27,925

2012

30,865

2013

34,861

2014

38,728

Forecasting Accuracy:

Total Rental Revenue

2010

Forecast

2014

Forecast

%

Difference

2010

27,049

26,800

0.9%

2011

27,925

28,700

2.8%

2012

30,865

31,300

1.4%

2013

34,861

33,300

4.5%

2014

38,728

36,100

6.8%

General Economic

Conditions

• Gross Domestic Product

• Consumer Spending

• Unemployment

• Construction

• Spending on Recreational

Services

• Economic Profits

Gross Domestic Product:

+2.7% next year; +11.8% by 2018

Heavily Influenced by Weak

Consumer Spending

Slowly Declining Unemployment

4.2

5.8

9.2 9.5

8.9

8.1

7.4

6.2

5.7 5.5

5.3 5.2

0

1

2

3

4

5

6

7

8

9

10

2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

% U

nem

plo

ym

en

t

Civilian Unemployment

Residential Construction:

+14.5% Next year; +28.4% by 2018

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Real Residential Construction (Billions 2005 US$

Non-Residential Construction:

+2.1% in 2015; +11.7% by 2018

300

350

400

450

500

550

600

650

2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Real Non-Residential Construction (Billions 2005 US

Total Construction:

+6.8% in 2015; +18.0% by 2018

0

200

400

600

800

1000

2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Total Real Construction Revenue ( Billions 2005 US

Residential Construction Non-Residential Construction

Recreational Spending up Only 1.6%

Next Year, then up 23.0% by 2018

4.0 4.5

4.2

1.7 1.6

5.1

7.5 7.3

2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Consumer Expenditures on Recreational Services (US$ Billions)

Improving Profits

4

11.4

4.2

0.2

7.2

2.9

-1.4

0.3

-4

-2

0

2

4

6

8

10

12

14

2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Economic Profits (% Change)

Improving Profits

0

500

1000

1500

2000

2500

2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Economic Profits (Billions of US $)

Rental Revenue

• Construction & Industrial

Equipment

• General Tool

• Party & Event

• Total Rental Revenues

Construction & Industrial Equipment

Rental Revenue :

+9.8% in 2015; + 42.6% by 2018

Construction & Industrial Equipment

Rental Revenue:

Fully recovered by 2015

General Tool Rental Revenue:

+9.0% in 2015; +44.7% by 2018

General Tool Rental Revenue:

Also Fully Recovered by 2015

Party Rental Revenue:

+3.9% in 2015; +13.3% by 2018

Party Rental Revenue.

Only One Bad Year.

Fully Recovered by 2011

Total Rental Revenue

Total Rental Revenue:

+9.2% in 2015; +39.5% by 2018

6.8

9.2

6.4

7.3

9.2

7.7

8.5

9.3

0

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Total Rental Revenue (% Change)

Total Rental Revenue:

Fully Recovered by 2015

Overall Outlook:

Very Positive

• Rental revenues fully recover by 2015 – Up 9.2% next year

– Hit new highs in 2016-18

• Driven by resurgence in residential housing

• Plus increasing rental penetration of total equipment capital

• Parties are a part of our culture

Thank you.