The latest Special Events magazine event rental forecast shows rental operators predicting strong business this year.
A whopping 80 percent of respondents predict they will handle more events this year than they did in 2015. Some 19 percent expect to handle approximately the same workload this year as last, while only 2 percent expect to handle fewer events.
The majority of respondents expect an increase in revenue derived from both business/corporate (65 percent) and social/private events (68 percent). The typical respondent expects business/corporate event revenue to increase an average 11 percent, and social/private event revenue to increase an average 9 percent.
The greatest challenges facing rental operations in 2016 are labor shortage/lack of skilled labor (55 percent), shorter lead times (55 percent), and increasing costs in the face of pressure to hold down prices (53 percent), followed by constantly offering new inventory (47 percent) and increased competition (45 percent).
Ranking lower on the "worry" chart are insurance costs (34 percent), an uncertain economy (30 percent), more problems getting permits (15 percent), consolidation of client base (2 percent), and consolidation in the party rental industry (2 percent).
Rental operators say that their top strategies for adapting to the 2016 rental marketplace include adding new inventory (89 percent), pursuing new clients (79 percent), and increasing marketing efforts (75 percent). Approximately half will add staff (49 percent). To a lesser extent, they plan to streamline operations (43 percent), raise prices (42 percent), add new services (36 percent), add new locations (26 percent), and cut prices (4 percent).
See the full story—along with look-back data to 2006--in the Spring issue of Special Events. Not a subscriber? We can fix that; just click here.
To buy the 2016 Special Events Rental Forecast for a nominal fee, just click here.
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