Portable restrooms are convenient, cost-effective, and require little to no plumbing infrastructure. Mobile toilets are frequently used at construction sites, event venues, public spaces, and more. This article will cover predictions for the future of the portable restroom industry as indicated by both our national and global economy.
The United States Economy
In 2018, the U.S. GDP had strong economic growth at an annual rate of 4.2% in the second quarter and 3.5% in the third. According to the Bureau of Economic Statistics, the market lost traction in the fourth quarter, largely due to the midterm election. Although professionals are navigating 2019 with caution, most sources will not be predicting a recession for 2019 and the demand for portable sanitation in the USA is expected to be dependant upon four major economic sectors: construction, events, agriculture, and an emergency and disaster response.
Portable Sanitation in Construction
Dodge Data and Analytics reported that new commercial construction “starts” were at their “second-highest seasonally adjusted rates ever.” Most of the income from these new projects won’t occur, however, until 2020 due to contracts being inked in late 2018. This means, commercial construction spending is expected to remain flat in 2019 and then increase to 8.9% in 2020. The U.S. Census also reported that construction spending for residential building shows serious slowing for 2019. However, if your company contracts with firms building apartment complexes, then you should see continued opportunities to address portable sanitation needs this year. In addition, non-building infrastructure construction, such as transportation spending (highways) and public works, is expected to see a positive 5.5% growth in 2019, increasing the need for portable sanitation.
Portable Sanitation in the Event Space
The event industry is not showing indication of a decrease in event planning, so portable sanitation services should be in continued demand. Eventbrite even says that 54% say that B2B event companies plan to host more events this year than last. One factor that could contribute to a dip in the event market would be the government shut down. This could potentially mean less disposable income for hosting and attending events in 2019, thus reducing the size of portable sanitation contracts. However, it is yet to be seen if this will have any noticeable impact.
Portable Sanitation in Agriculture
Agriculture is expected to remain a steady source of business for the portable sanitation industry because portable sanitation is most often used when crops are being harvested by hand. Over the last five years, household disposable income has increased, causing people to consume more hand-picked, fresh produce. The need for porta potties in agriculture will continue to be steady.
Portable Sanitation in Emergency & Disaster Response
Statistically, natural disasters have been increasing in frequency and severity over the past decade. The Insurance Information Institute reports that insured losses due to natural disasters in the US in 2017 totaled $78 billion; more than triple the $23.8 billion total for 2016. California, in fact, is fourth on the list for the highest number of catastrophic insurance claims in 2017. With the California fires and mudslides of last year, the numbers for 2018 are expected to be staggering as well. Forecasting graphs would suggest that we will continue to have a growing need for porta potties in the emergency and disaster response industries this year.
On the Global Horizon
According to Research & Markets, “the overall mobile toilets market worldwide is set to cross the US$ 9 billion mark by 2026.” The world has a growing awareness of portable sanitation’s benefits and applications. New countries and markets are embracing mobile sanitation, giving the porta potty and luxury portable restroom market enormous growth potential.
NuConcepts Luxury Portables
If you are in the market for your first portable restroom trailer or stand-alone unit, or if you are a seasoned professional looking to expand your fleet of modern porta potties, NuConcepts is your resource for luxury portable restrooms and expert advice. Contact a NuConcepts team member today who will be happy to address all your portable restroom needs.