The American Rental Association released its second quarter equipment rental industry outlook, which calls for continued revenue growth of 5.6% in 2016 and 4.9% in 2017 in the U.S.

The ARA noted that the data is slightly modified when compared to the first quarter forecast, but it continues to tell a positive story about the industry’s future.

Total revenue in the U.S., including the three segments of the equipment rental industry — construction/industrial, general tool and party and event — in 2016 is expected to reach a record $47.9 billion and climb to an unprecedented $55.6 billion in 2019.

“Following the recession, we decided to update our forecast on a quarterly basis so that subscribers to the ARA Rental Market Monitor service would have up-to-date information to help with managing their businesses,” said Christine Wehrman, ARA’s CEO and executive vice president. “Things can change so rapidly and a forecast can be quickly outdated, so we want to make sure we help ARA Rental Market Monitor subscribers and ARA members have the most up-to-date information to make the best decisions for their businesses moving forward. While there may not be a lot of variation quarter to quarter, it can help us spot trends faster and take advantage of market conditions.”

The forecast for Canada now calls for a 2.2% decrease in total rental revenues to $4.83 billion because of a 2.9% decrease in construction and industrial equipment rental revenue in 2016. General tool is expected to show an increase of 0.8% and party and event is forecast to be up 0.5% in 2016.

The trend in Canada is expected to reverse in 2017, with Canadian equipment rental revenue expected to show a 4.7% increase and grow in successive years to reach $5.64 billion in 2019.

In the U.S., several factors also pose potential risk to the industry’s growth, including unexpected government policy changes and oil price changes.

“The adjustments in our forecast reflect changes in the outlook for the entire economy. The fact that the equipment rental industry continues to have revenue growth more than double that of the U.S. economy as a whole underscores the positive aspects of this latest forecast by IHS Global,” said John McClelland, ARA vice president for government affairs and chief economist.