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.

Oct 6, 2026 - Equipment Finance Demand Remains Strong

• The Equipment Leasing & Finance Association (ELFA) says equipment finance demand cooled in August after a record July but remained historically strong, while credit conditions improved. New business volume totaled $11.8 billion, down 17.3% from July but up 19.1% year over year, and year-to-date volume increased 17.3%. ELFA forecasts 2026 equipment deal volume of $137.7 billion, which would be a record. For product rental and leasing companies, sustained equipment investment and healthy credit quality could support fleet expansion and customer access to financed assets, although higher borrowing costs remain a risk. The average approval rate fell to 75.4%, while delinquencies held at 1.8%.
• The Association of Professional Rental Organizations (APRO) says it introduced new Member Consumer Best Practices Guidelines for the rent-to-own and lease-to-own industry. The guidance calls for accurate advertising, prominent disclosure of key lease terms and total cost to ownership, customer inspection rights, limits on undisclosed charges, and training for third-party retail personnel. For product rental and leasing companies operating in rent-to-own or lease-to-own markets, the guidelines could raise expectations for transparency, staff training, documentation, and oversight of retail partners. APRO says the principles are voluntary best practices rather than legal requirements, but they arrive as legislators and attorneys general increase scrutiny of how lease-to-own products are advertised, disclosed, and delivered. The association says clearer standards can strengthen customer trust and industry self-regulation.
• Sunbelt Rentals posted record fiscal first-quarter results as rental revenue grew across its North American operations, according to Rental Equipment Register. Total revenue rose 11.2% year over year to $3.12 billion, while equipment rental revenue increased 12.5% to $2.93 billion. North America General Tool rental revenue rose 7.4%, and Specialty rental revenue jumped 25.3%, supported by demand from mega projects, energy, live events, industrial customers, and non-construction maintenance markets. For product rental and leasing companies, Sunbelt's broad-based growth suggests continued customer preference for rented equipment across several end markets, while stronger specialty demand may encourage fleet investment in higher-value niches. Sunbelt raised its fiscal 2027 rental revenue growth outlook to 7%-10%.
• 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.

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% overall in 2025-2035, which is slightly below the national average of 3.5% for all jobs, according to the Bureau of Labor Statistics.