US Product Rental and Leasing Sector NAICS 532

        US Product Rental and Leasing Sector

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Purchase Report

Industry Summary

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.


Recent Developments

Jun 6, 2025 - Headwinds to Slow US Manufacturing Growth
  • US manufacturing growth is expected to slow in 2025 amid trade strife, inflation, and geopolitical uncertainties, according to the Institute for Supply Management’s Spring 2025 Supply Chain Planning Forecast. Manufacturing revenue is forecast to rise by 0.1%, 4.1 percentage points below the ISM’s previous forecast released in December 2025. Over a third of the ISM survey respondents expect revenues to increase in 2025, 22% said revenues will fall, and 44% expect no change. Capital expenditures are projected to decrease by 1.3% in 2025, a significant drop from a 5.2% rise forecasted in the ISM’s December 2024 report. Manufacturing activity is a leading demand driver for commercial equipment rental and leasing services.
  • The total value of construction starts decreased by 9% in April compared to March, according to Dodge Construction Network. Nonbuilding construction starts dropped 22%, as utility starts fell 70% and highway and bridge starts were down 8%. Residential starts fell 4.2% month-over-month in April; single-family starts dropped 5%, while multifamily starts were down by 3%. Nonresidential building starts fell 3% in April, as a 2% rise in institutional starts and a 78% jump in manufacturing projects were not enough to offset a 21% decline in commercial starts. Dodge Construction Network chief economist Eric Gaus said, “Broad-based monthly declines in construction starts represent a troubling signal for the sector. While not definitive, the slowdown in April aligns with delays in the planning pipeline and other economic data that capture the volatility and uncertainty of all the April tariff announcements. Uncertainty around trade policy and the economy’s direction will continue to weigh on construction activity in the coming months.”
  • US retail sales, a proxy indicator for consumer products rental demand, increased 0.1% on an adjusted basis in April 2025 compared to March. The month-over-month gain in April was smaller than that seen in March, as consumers front-loaded spending on some types of goods, specifically automobiles, ahead of tariffs, according to Reuters. Retail sales for furniture and home furnishing stores rose 0.3% in April over March, and electronics and appliance store sales also increased 0.3%.
  • Some travel industry insiders and observers expect summer travel demand to soften amid mounting uncertainties, according to The New York Times. Hotel chains, including Hilton, Hyatt, and Marriott, have reduced their revenue outlooks amid slowing growth. Airbnb and Expedia have also lowered their growth expectations for the coming months. Industry watchers suggest that U.S. policies on immigration and trade may make the US a less attractive destination for international travelers. International arrivals to the US are forecast to drop by 9.4% in 2025, according to research company Tourism Economics. The World Travel and Tourism Council expects 2025 revenue from international travel to the US to drop to $169 billion compared to $181 billion in 2024. Economic uncertainties may also prompt US consumers to pull back on domestic travel. Travel activity is a leading demand driver for car rental services.

Industry Revenue

US Product Rental and Leasing Sector


Industry Structure

Industry size & Structure

The product rental and leasing services sector is comprised of 51,000 establishments that employ 577,300 workers and generate $210.6 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 85,000 owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are commercial and industrial machinery and equipment rental and leasing (37%); automotive equipment rental and leasing (31%); and consumer goods rental (24%). 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 4.4% overall in 2023-2033, which is slightly higher than the national average of 4% for all jobs, according to the Bureau of Labor Statistics.

                                  Industry Forecast

                                  Industry Forecast
                                  US Product Rental and Leasing Sector Industry Growth
                                  Source: Vertical IQ and Inforum

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