Commercial Equipment Rental and Leasing NAICS 5324

Jan 6, 2026 - Equipment Leasing and Finance Volumes Remain Solid

• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume was valued at $10.3 billion in November 2025, down slightly from the month before. On a year-over-year basis, new business volumes decreased 4.4% in November. New business volume declined 0.9% in the first 11 months of 2025 compared to the same period in 2024. ELFA CEO and President Leigh Lytle said, "Demand for equipment remained strong in November. New business volumes topped $10 billion for the fourth straight month. We’re still on pace for one of our strongest years on record, and we expect that the Fed’s decision to lower the federal funds rate by 75 basis points in 2025 will bolster momentum for equipment demand next year."
• Continued softness in the US manufacturing sector could signal weaker demand for some types of commercial equipment. US manufacturing activity contracted in December 2025 for the tenth consecutive month, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in December fell to 47.9% from a reading of 48.2% in November. A reading above 50% indicates manufacturing expansion. December’s New Orders Index increased by 0.3 percentage points to 47.7%. The December Production Index rose 0.4 percentage points to 51%. Of the 18 manufacturing industries tracked by the ISM, only two reported growth in December: electrical equipment, appliances, and components; and computer and electronic products. Industries reporting contractions in December included apparel, leather, and allied products; wood products; textile mills; paper products; chemical products; printing & related support activities; nonmetallic mineral products; petroleum and coal products; primary metals; miscellaneous manufacturing; plastics & rubber products; fabricated metal products; machinery; food, beverage & tobacco products; and transportation equipment.

• The total value of construction starts in November fell 20.5% compared to October, according to Dodge Construction Network. Nonbuilding construction starts declined 43.7%, led by a 70.4% drop in miscellaneous nonbuilding starts and followed by weak activity in utilities (-61.4%) and highways and bridges (-4.9%). Nonresidential building construction starts decreased by 13.4% in November compared to the previous month, as office and data center starts dropped 40.5% and hotel starts declined by 33.2%. Nonresidential building segments that posted growth in November included parking garages (+32.1%), retail stores (+8.3%), and warehouses (+6.4%). Institutional starts grew 11.4% as gains in public and educational building starts offset declines in amusement and dormitory starts. Manufacturing starts remained volatile in November, declining 50.7% from October levels. Residential starts grew 13.3% in October, with single-family starts rising 3.1% and multifamily starts up by 35.6%.
• Construction firms that work on civil infrastructure projects are holding steady as they manage uncertainties, including waning backlog growth and stagnant margins, according to FMI’s fourth-quarter Civil Infrastructure Construction Index (CICI) survey. The CICI reading for the third quarter was 50.6 compared to 50.8 in Q3 2025 – on a 100-point scale. Any CICI reading above 50 indicates that more civil infrastructure contractors see conditions as good than poor. About half of civil infrastructure contractors reported that their backlogs in Q4 met or exceeded their targets. However, most noted that public projects are making up a growing share of overall backlogs, as private-sector projects face greater uncertainty. Contractors expect backlog growth to slow over the next few quarters as more firms vie for a narrower set of public projects. Contractor margins remained steady but flat in Q4 2025 as bid competition and rising cost pressures eroded pricing power.