Rouse provides rental companies with a detailed analysis of their position in the rental market compared to their peers.
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There is likely to be a reduction in the number of events throughout the first half of 2009. People will still want to hold events, but they will try to save costs wherever they can and avoid extravagant expenditures. Party events held steady in 2008 but may slow slightly in 2009, while corporate events (especially trade shows) are down.
According to the American Rental Association's "State of the Equipment Rental Industry Report," tent rentals remain a leading revenue generator for event professionals. One nationally operated U.S. tent rental company reports that it is doing fairly well, and feels that the party and event rental industry is not that much affected by the economy. Their market niche includes many events that are grand openings or annual events-from golf tournaments to graduations-and many life events like weddings. The company doesn't do a lot of corporate events and trade shows.
Some established event rental firms that serve the corporate market report that they are not really feeling a credit crunch, but they do see its impact affecting them for the first half of 2009. This is a very fragmented, competitive market, with thousands of companies trying to serve the event market with rental tents and tent-related equipment. The companies that have been and still are struggling will have a difficult time in terms of sales and profitability in 2009. Being flexible in serving different markets and different kinds of events will be key for growth and profitability in 2009 and beyond.
From the 2009 State of the Industry Report. Purchase a complete report at the IFAI Bookstore.