economic NJ

NJARAPAC

New Jersey American Rental Association Political Action Committee

About the American Rental Association

The American Rental Industry is made up of firms that provide consumers with the temporary use on a fee basis of a wide range of products and goods. These include construction and heavy equipment; light industry equipment and tools; event and party supplies. The rental industry has become an integral part of the fabric of American commerce. Rental businesses are present in virtually every community in each of the

50 states, the District of Columbia, Guam, Puerto Rico, the Virgin Islands, every Canadian province, and more than 40 countries around the world. Our current membership includes more than 7,500 rental businesses and 1,100 manufactures and suppliers.

Economic Contribution of the Rental Industry to New Jersey

The rental industry has grown more than 24 percent since 2002 to an estimated $25.4 billion of total revenue in 2005 nationwide. Rental industry revenues in New Jersey totaled an estimated $701 million in 2005. In order to generate this revenue, the rental industry purchases a significant quantity of equipment, machinery, tools, and specialty goods and products that are rented to consumers. Also, the rental industry purchases a large quantity of repair parts and other goods, commodities, and services needed to maintain these products and their distribution to consumers. As such, these activities represent the purchase of final demand from a wide range of industries. Finally, the rental industry directly employs people and pays wages that are in turn spent by employees and their families, and pays taxes.

Every dollar of spending by the rental industry to generate revenue is “multiplied” as it circulates through the local economy thereby generating additional new final demand that creates and supports new jobs and generates income for consumers.

The rental industry makes a significant contribution to the size and growth of the New Jersey economy. Specifically, the rental industry:

Adds more than $1.3 billion (2005$) annually to final demand resulting in the creation of $730 million Gross State Product for New Jersey.

Generates an additional $338 million annually in income for NJ’s households

Supports more than 7,280 jobs throughout the entire NJ economy.

Numbers reported are as January 5, 2005 from ARA national. 1900 19th Street Moline Illinois 61265