US Product Rental and Leasing Sector

The 51,000 product rental and leasing establishments in the US provide the use of commercial and consumer goods in return for lease or rental payments. Establishments may rent or lease nonfinancial intangible assets, including patents and trademarks (but excluding copyrighted works).

Seasonal, Uneven Demand and Cash Flow

Cash flow in the equipment rental/leasing sector is seasonal and driven by the dynamics of downstream industries.

Variability in Residual Value

Firms are exposed to financial risk when the market value of a vehicle or rental good is less than its depreciated value (residual value) when it is sold.

Sep 6, 2026 - Mega Projects Boost Equipment Demand

• Large data centers, infrastructure, power, and other mega projects are reshaping demand for equipment rental, as contractors require different machines across successive construction phases, according to Construction Equipment. These projects are boosting demand for specialty equipment such as portable power, load banks, trench safety systems, scaffolding, and temporary structures. In Q2 2026, Sunbelt reported a 15.1% year-over-year increase in North American specialty rental revenue, while United Rentals posted a 24.8% gain. Large, complex jobs are also encouraging contractors to consolidate equipment rentals and adopt telematics platforms that track utilization, reduce underused equipment, and coordinate fleets across multiple contractors. Rental companies are responding by expanding their fleets, with United Rentals, Sunbelt, and Herc planning to spend up to about $9.5 billion on combined equipment purchases. The trend is strengthening rental's role as contractors seek flexibility rather than owning every machine needed for major projects.
• US equipment rental revenue, which includes the construction/industrial and general tool market segments, is expected to rise 3.4% to $83.5 billion in 2026, according to a recent forecast by the American Rental Association (ARA). The construction and industrial equipment market is forecast to grow 4.4% in 2027, then rise another 5.1% in 2028. However, the ARA forecast could be altered by potential headwinds, including the impact inflation, interest rates, and tariffs have on construction spending. The ARA expects event rental industry revenue to grow 6.5% in 2026 to $6.2 billion, then rise another 8.3% in 2027 and 6.4% in 2028.
• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume increased 47.3% to $14.3 billion in July 2026 compared to the same month in 2025. ELFA President and CEO Leigh Lytle said, "Equipment demand surged to new heights in July, on the back of AI-related investment. This is the second time this year that the pace of monthly new volumes has set a new record. Credit quality improved as well, with the average loss rate at a nine-month low and delinquencies holding near the low end of their two-year range. With unrelenting demand and healthy financial conditions, it’s going to take a lot more than recent market volatility or a few Fed rate hikes to keep the industry from breaking records in 2026."
• Rental Management reported strong second-quarter growth at Herc Holdings and United Rentals, with both companies raising their 2026 outlooks. Herc's revenue rose 20% to $1.2 billion from $1 billion, while the company earned net income of $19 million, compared with a $35 million loss a year earlier. Herc increased its full-year equipment rental revenue forecast to $4.38 billion to $4.48 billion from $4.28 billion to $4.40 billion. United Rentals' revenue increased 12% to a record $4.41 billion from $3.94 billion, and net income rose 21% to $753 million. United Rentals raised its full-year revenue outlook to $17.5 billion to $17.8 billion from $16.9 billion to $17.4 billion.

Industry size & Structure

The product rental and leasing services sector is comprised of 51,000 establishments that employ 577,200 workers and generate $227 billion in annual revenue, according to government sources.

• The product rental and leasing services sector represents 1.3% of the nation's Gross Domestic Product (GDP) and employs 0.4% of the country's workers.
• The sector is concentrated with the 20 largest firms representing 48% of revenue.
• In addition to employer establishments, the product rental and leasing services sector has 123,000 owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are commercial and industrial machinery and equipment rental and leasing (29%); automotive equipment rental and leasing (35%); and consumer goods rental (27%). The owners of nonemployer establishments typically perform the work and may outsource support functions like marketing and accounting.
• The product rental and leasing sector has shed about 4,100 establishments annually, which equals about 8.7% of existing establishments. However, the sector has added about 4,300 new establishments annually, which is equivalent to 8.4% of existing establishments. As a result, the sector has an average loss rate of 0.3%.
• The product rental and leasing sector is forecast to grow its employment base by 3.6% overall in 2024-2034, which is slightly higher than the national average of 3.1% for all jobs, according to the Bureau of Labor Statistics.