Commercial Equipment Rental and Leasing NAICS 5324

Nov 4, 2025 - Building Design Services Demand Remains Weak

• Demand for building design services fell in September from the prior month, according to an October report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) dropped to 43.3 compared to August’s reading of 47.2. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries dropped to 50.1 in September from 50.3 in August, and the index for the value of new design contracts decreased from 47.2 to 46.3. September marked the 19th consecutive month of decline for new design contracts. The AIA’s Chief Economist, Kermit Baker said, "Unfortunately, business conditions remain relatively weak at architecture firms. There was some erosion in project backlogs this past quarter, with the greatest slippage coming from firms with an institutional specialization."
• North American construction and engineering spending in 2025 is expected to decline 1% after increasing an estimated 6% in 2024, according to FMI’s fourth-quarter 2025 North American Engineering and Construction Outlook. With a rise of 12%, the sewage and waste disposal sub-sector will lead 2025 nonresidential construction spending growth, followed by religious (10%), water supply (+7%), conservation and development (+5%), amusement and recreation (+4%), public safety (+4%), and transportation (+4%). However, spending on power, highway, and street construction is expected to remain flat in 2025. Residential construction spending is expected to decline 2%. Multifamily construction is expected to decrease 9% in 2025, amid oversupply in some key markets and weak rent growth. Single-family construction is projected to drop 3% in 2025, as stubbornly high interest rates and elevated home prices reduce demand.

• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume increased 4% to $10.5 billion in September 2025 compared to August. On a year-over-year basis, new business volumes increased 8.6% in September. New business volume declined 1.9% in the first nine months of 2025 compared to the same period in 2024. ELFA CEO and President Leigh Lytle said, "Despite the government shutdown's delay of key economic data, our latest CFI data indicates that equipment demand was strong at the end of the third quarter. The current pace of new business volumes has put the industry on track for one of its best years ever. And financial conditions remain healthy. Delinquency and loss rates fell in the latest data and remain consistent with a sector that is unfazed by the turmoil of 2025. With the Fed resuming its easing cycle, I expect demand to remain strong and financial conditions to improve further. That will give the equipment finance industry a lot of momentum heading into 2026"
• US manufacturing activity contracted in October 2025 for the eighth consecutive month, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in October fell to 48.7% from a reading of 49.1% in September. A reading above 50% indicates manufacturing expansion. September's New Orders Index increased by 0.5 percentage points to 49.4%. The August Production Index declined 2.8 percentage points to 48.2%. 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 rentals.