Although rental sales dropped in 2020, they soon came roaring back as construction ramped up and people flocked to outdoor events. Indeed, many portable restroom operators found it challenging to keep hand washing stations and toilets stocked. However, PROs want to know how long the boon in business will last and if they should add units or employees to meet demand.
Although we don’t have a crystal ball, we can review the factors affecting demand, such as growth in construction, event, and recreational vehicle (RV) industries, and determine how these changes affect the portable sanitation sector. Here’s what you need to know about the latest economic trends and outlooks.
Grand View Research valued the global portable toilet rental market size at $17.1 billion in 2020. The study estimates a “compound annual growth rate (CAGR) of 6.6% from 2021 to 2028.” In comparison, since the 2008-2009 recession, global gross domestic product (GDP) has hovered between 2% and 4%. Yet, the US economy “grew by 5.7% in 2021, the largest increase since 1984,” according to the Bureau of Economic Analysis (BEA).
Additionally, the Construction Global Market Report 2021 estimates the market will “reach $16,614.18 billion in 2025 at a CAGR of 7%.” North America accounts for 26% of the global construction market, but the Asia Pacific is the largest region, making up 42% in 2020. Grand View Research also notes that “the special events segment is anticipated to witness the highest CAGR over the forecast period.” Infrastructure initiatives and a rise in outdoor event attendance will bolster growth in the portable restroom industry.
Over the next few years, the global portable restroom industry will see growth thanks to various factors, including:
According to IBIS World, “As demand for downstream markets continue[s] to expand over the next five years, industry revenue is expected to stabilize amid the economic rebound.”
Therefore, the surge in demand will peak in the upcoming years, and PROs should frequently assess their local market to keep their offerings in line with their customer base.
As economic uncertainty persists, portable restroom operators need to find the right mix of growth and sustainability. One way to do this is by staying connected to industry updates and your local market. Use data to evaluate changing conditions and expose potential opportunities while promoting your services to fast-growing markets.
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