Accella Tire Fill Systems, the Chattanooga, Tenn.-based manufacturer of TyrFil polyurethane flatproofing systems for off-the-road tires, said it was encouraged by the latest ARA Rental Market Monitor issued by the American Rental Association.
The ARA's projection of a $51.5 billion market for rentals in 2018 bodes well for the non-residential construction and OTR tire industries, Accella Tire said.
"It points to the fact that the economics around equipment rentals are positive — exhibiting performance that nearly doubles the growth rate of the economy," the company said.
Although the effects of passage of the recent tax reform bill are currently unclear, tax reform could help accelerate growth in the construction and other markets, Accella Tire said.
Also, the ARA study indicates that equipment rental remains a strong option for construction businesses, it said.
"All of the above generally create a scenario for the construction equipment marketplace that shows positive forward-looking growth and an outlook of health for the rental equipment marketplace overall," the company said.
Outlook for bill
Dodge's outlook for the construction industry was highly optimistic for 2017, but part of that optimism was based on the new Trump administration and its anticipated infrastructure package, which was estimated as high as $550 billion.
The political difficulties in January 2018 — including a brief government shutdown Jan. 20-22 — make the prospects for passage of an infrastructure funding package in 2018 unclear.
"Beyond the budget, the biggest agenda item that we expect to see the White House pushing Congress on this year is infrastructure," the Tire Industry Association (TIA) said in the Jan. 15 issue of its Weekly Legislative Update.
Whereas infrastructure spending tends not to be controversial, the Republicans and Democrats are already taking sides on the issue, according to TIA.
The Democrats released their infrastructure plan when it became apparent Republicans wouldn't include Democrats in infrastructure discussions, it said.
"With the increases to the deficit created by the tax-reform bill, there may be challenges on both sides of the aisle both with respect to the funding and details of an infrastructure bill," TIA said.
On Jan. 22, the news website Axios leaked a six-page document purporting to be the funding principles for the Trump administration's infrastructure package.
The document begins by outlining an "Infrastructure Incentives Initiative" that would encourage state, local and private investment in core infrastructure by providing grants.
Federal incentive funds would be conditional on achieving milestones within an identified timeframe, according to the document. This program would account for 50 percent of total infrastructure appropriations, it said.