North American Oil & Gas Pipelines

MAY 2018

North American Oil & Gas Pipelines covers the news shaping the business of oil and gas pipeline construction and maintenance in North America, including pipeline installation methods, integrity management innovations and managerial strategies.

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Page 30 of 43 MAY 2 018 | North American Oil & Gas Pipelines 31 What is your outlook on the equipment rental market entering 2018? Bullish? Bearish? Why? FLANNERY: Based on what we see and hear from our customers, we think the equipment rental outlook is solid. Our customer confidence surveys through September were very positive, consistent with similar surveys done by trade groups. Many of the key leading construction indicators — including contract backlogs, Dodge and the Architectural Billings Index — have been encouraging as well. The same can be said for the leading industrial indicators. Together, these point to a healthy U.S. economy that we think should benefit construction activity and the equipment rental market. During the 2016 election, there was talk about increased support for infrastructure construction and repair. What impact did it have on the market in 2017? What about looking ahead? FLANNERY: There was good reason for all that positive talk during the election — a great deal of our nation's infrastructure is in need of repair and improvement. It seems that some state and local governments have had to move forward and tackle problems that can't wait. The good news is that there is broad bipartisan support for a solution. Anything that does get legislated should be additive to what we think is already a growing market. The American Rental Association forecast that the equipment rental market was expected to reach $49.4 billion by the end of 2017 and well over $50 billion by 2021. What do see as the main drivers of this growth? FLANNERY: We don't speak to our business as far out as 2021, but based on what we see and hear today, the U.S. construction and industrial cycles feel intact. Beyond that, we continue to believe that rental penetration should provide a tailwind to help our industry outgrow its underlying markets.

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