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.

Aug 6, 2026 - Major Equipment Rental Firms Posts Solid Q2 Results

• 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.
• Auto Rental News reports that, according to market research firm Berg Insight, the global public carsharing fleet is expected to grow from about 511,000 vehicles in 2025 to 768,000 by 2030, representing an 8.5% compound annual growth rate. Worldwide membership is projected to rise from 91 million to 141.1 million during the same period, while corporate carsharing fleets could expand from 154,000 to 250,000 vehicles. Asia-Pacific is expected to remain the largest market, followed by Europe, where free-floating services now lead in membership and fleet size. Connected vehicles, telematics, booking systems, billing platforms, and analytics support modern operations. Many providers are shifting from rapid expansion toward profitability and higher vehicle usage. The 30 largest operators account for about 63% of members and manage 56% of the global public fleet.
• US construction and engineering spending in 2026 is expected to decline just over 1% after remaining flat in 2025, according to FMI’s third-quarter 2026 North American Engineering and Construction Outlook. Data center construction will provide the strongest demand, rising 21%, while conservation and development and religious construction each grow 13%. Residential improvements are forecast to increase 5%, supported by home equity spending and construction cost inflation. Power, highway and street, sewage and waste disposal, and several other infrastructure segments should post modest growth, with power expected to accelerate sharply beginning in 2027. Manufacturing construction faces the steepest decline, falling 17% as semiconductor and battery plants move beyond their most construction-intensive phases. Warehouse spending is forecast to decrease 10%, lodging falls 9%, and high mortgage rates and affordability constraints reduce single-family spending by 4%.
• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume increased 2.5% to $10.5 billion in June 2026 compared to the same month in 2025. ELFA President and CEO Leigh Lytle said, "Equipment demand rebounded in June, and our forecast for total deal activity at year-end reached an all-time high. 2025 started off with a bang, and some cooling was always expected. Even with some easing from peak levels, business activity over the first half of 2026 is up over 11% from the same period last year. Financial conditions remain healthy. The industry-wide delinquency rate dropped to a multi-year low, and losses remain modest. As has been the case for over a year, the industry remains well-positioned to meet the resurgence of tariffs, hostilities in the Middle East, and potential Fed rate increases later this year."

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.