US Product Rental and Leasing Sector NAICS 532

Apr 6, 2026 - Civil Infrastructure Backlogs Strong, Labor Remains an Issue

• Construction equipment leasing firms could see improved demand amid steady growth in the civil infrastructure backlog. The Q1 2026 Civil Infrastructure Construction Index (CICI) report by construction consulting firm FMI shows the civil construction industry entering a period of steady expansion. The CICI index rose to 52.1 in Q1 2026 from the previous quarter, and the backlog index increased to 57.3 from 52.8, signaling strong demand. Public funding and local project pipelines continue to support growth, particularly in transportation, water, and utilities, reinforcing a multiyear infrastructure cycle. However, the industry’s primary challenge is execution, not demand. Labor shortages, turnover, and productivity constraints are limiting firms’ ability to deliver work profitably, even as materials costs stabilize. As a result, civil contractors face mounting pressure to balance rising workloads with workforce capacity, operational discipline, and margin protection. Workforce shortages could support the leasing of labor-saving equipment.
• Travelers across the U.S. faced unusually long airport security lines during the partial government shutdown, prompting many to seek alternatives such as rental cars and trains, according to Bloomberg. Staffing shortages at the Transportation Security Administration led to extended wait times, missed flights, and growing frustration, pushing some passengers to reconsider flying altogether. This shift has directly benefited the auto rental industry, with Hertz reporting a 15% increase in search traffic and a notable rise in its stock as demand surged. Travelers cited comparable travel times between flying and driving as a key factor in switching modes. While some relief has emerged at select airports, ongoing uncertainty continues to influence consumer behavior, positioning rental car companies to capture increased demand as travelers prioritize reliability, flexibility, and control over their travel plans.

• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume reached a value of $11 billion in February 2026, down 4.7% from the month before. On a year-over-year basis, new business volumes increased 14.2 % in February. ELFA CEO and President Leigh Lytle said, "Every industry segment saw healthy growth over the last year, with independent providers leading the way with another surge in February. This survey was conducted before the conflict in Iran and the March FOMC meeting, and those could cause more bumps in the first half. However, financial conditions and credit approvals remain strong. These are signs that the sector can withstand additional shocks."
• US equipment rental revenue, which includes the construction/industrial and general tool market segments, is expected to rise in 2026, but at a slower pace, according to a recent forecast by the American Rental Association (ARA) and data partner S&P Global. After posting revenue of $80.6 billion in 2025, equipment rental revenue is expected to increase by 2.8% in 2026 and reach $82.9 billion. Demand for construction and industrial equipment (CIE) is forecast to rise 1.6% in 2026, and general tool equipment investment is expected to rise by 4.1%. However, geopolitical and financial challenges are weighing on business and consumer confidence, which is slowing equipment rental demand. Residential construction is expected to drop 0.6% in 2026, while nonresidential construction will rise only 0.6%. US manufacturing activity is forecast to remain flat, rising just 0.3% in 2026.