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.

Nov 5, 2026 - Equipment Rental Industry Reports Stronger Revenue Growth

• Equipment rental companies reported accelerating revenue growth during the third quarter, according to Rental Equipment Register. Participants in the Baird/RER Rental Equipment Industry survey reported a 9.3% year-over-year increase in revenue. General equipment rental revenue grew 6.7%, while specialty rental revenue increased 16.8%. Nearly half of respondents said quarterly results exceeded their internal budgets, compared with just 5% who reported weaker-than-expected performance. The survey indicated that data center investment, power infrastructure development, and improving manufacturing construction activity were supporting rental demand. Stronger rental revenue suggests customers continue to rely on equipment rental services for major projects and specialized requirements. However, growth remains uneven across construction markets, potentially favoring companies with specialized equipment and access to large industrial projects.
• Commercial construction groundbreakings fell sharply in September as several major building categories weakened, according to Dodge Construction Network. Total construction starts declined 1.5% from August to a seasonally adjusted annual rate of $1.33 trillion. Nonresidential building starts dropped 6.3%, including an 18.4% decrease in commercial starts. Manufacturing, office, and data center projects contributed to the monthly decline, while stronger activity in education and highways helped offset some of the weakness. Despite September's decline, year-to-date nonresidential starts remained ahead of the previous year's pace. Declining commercial groundbreakings could temporarily reduce demand for construction equipment rentals. However, infrastructure and institutional projects may provide alternative sources of equipment demand, particularly for companies with diversified fleets serving multiple construction markets.
• Major construction projects and fleet expansion helped drive growth at Herc Rentals during the third quarter, according to Rental Equipment Register. The company reported rental revenue of $1.26 billion, up 11.8% from $1.12 billion during the same period in 2025. Higher equipment rental volume on megaprojects, a slightly larger average fleet, and acquisition-related revenue benefits supported the increase. Total revenue grew 4.6%, while adjusted earnings before interest, taxes, depreciation, and amortization increased 9.4%. Sales of used rental equipment declined substantially from the previous year. The results illustrate how investment in large construction projects can support demand for rental equipment. However, companies with less exposure to major infrastructure and industrial projects may experience different demand conditions, particularly in weaker construction markets.
• Equipment financing activity remained robust in September despite economic uncertainty, according to the Equipment Leasing & Finance Association (ELFA). The association's CapEx Finance Index showed that seasonally adjusted new business volume was essentially unchanged from August, making September the third-strongest month in the survey's history. New business volume reached $11.8 billion, while year-to-date volume increased 17% compared with the same period in 2025. The delinquency rate fell to its lowest level since April 2023, suggesting relatively healthy credit conditions among borrowers. Strong demand for equipment financing indicates that businesses continue to invest in machinery, vehicles, and other productive assets. Equipment leasing providers may benefit from continued capital investment, although elevated borrowing costs and economic uncertainty could affect financing demand and customer purchasing decisions.

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.