US Product Rental and Leasing Sector NAICS 532

Feb 6, 2026 - Auto Rental Industry Optimistic After Spate of Challenges in 2025

• The car rental industry spent 2025 adjusting to tariffs, weaker tourism, tighter financing, and rapid technological change, prompting both major companies and independents to rethink long-standing operating models, according to Auto Rental News. Tariff uncertainty led operators to rush vehicle purchases and hold fleets longer. At the same time, political tensions contributed to year-round declines in tourism, resulting in lower daily rates, shorter rental lengths, and overall lower usage. Smaller independents faced slow growth and stricter lending conditions, making efficiency and careful fleet planning essential. At the same time, operators accelerated digital adoption by using AI for fleet diagnostics, pricing analytics, fraud prevention, and automated check-ins. These tools helped larger independents cut fixed costs and compete more effectively. Despite a challenging year, operators are optimistic about 2026, hoping for stronger demand, better margins, improved access to financing, and wider availability of AI and digital platforms.
• Construction spending for nonresidential buildings is expected to remain sluggish in 2026 and 2027, according to the American Institute of Architects’ (AIA) Consensus Construction Forecast released in January. Total spending for nonresidential building construction is expected to rise just 1% in 2026 and 2.2% in 2027. For the next two years, commercial facility growth will be led by data centers, with spending rising 26.3% in 2026 and 16.5% in 2027. However, offices are expected to see a sharp decline in spending over the forecast period, while warehouse and retail will see weak growth this year and modest gains in 2027. Manufacturing construction spending will fall 3.9% in 2026 and drop 2.8% next year. Spending on institutional projects will grow 2.7% this year, and 2.8% in 2027, led by steady growth in the health sector, but educational, and amusement and recreation project spending will remain relatively flat.

• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume was valued at $10.6 billion in December 2025, up 3.1% from the month before. On a year-over-year basis, new business volumes increased 5.9% in December. Full-year new business volume declined 0.5% in 2025 compared to 2024. ELFA CEO and President Leigh Lytle said, "December confirmed that 2025 was a year for the record books, with new business volumes closing the year on a tear. The data show that the equipment finance industry has not only weathered but thrived amid historic uncertainty. While we expect some volatility in 2026, all signs point to another year of strong demand and stable financial conditions—especially as markets anticipate additional rate cuts later this year."
• US manufacturing activity expanded in January 2026 for the first time in 12 months, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in January rose to 52.6% from a reading of 47.9% in December. A reading above 50% indicates manufacturing expansion. January's New Orders Index decreased by 9.7 percentage points to 57.1%. The January Production Index rose 5.2 percentage points to 55.9%. Despite the return to PMI growth in January, several individual respondents to the ISM survey suggested that demand in the factory sector is being affected by economic uncertainty caused by the unpredictable nature of US tariff policy. Manufacturing activity is a demand driver for commercial equipment rental and leasing services.