Commercial Equipment Rental and Leasing

The 8,521 Companies in the US rent or lease commercial or industrial equipment and machinery directly to businesses. Major categories for rental or leasing revenue include miscellaneous types of commercial or industrial equipment (manufacturing, medical, audio/visual, theatrical and motion picture, modular/mobile buildings, energy/power generating); construction, mining, and forestry equipment; transportation equipment; and office equipment. Firms may also sell new or used equipment, supplies, and parts.

Capital-Intensive Operations

The commercial equipment rental and leasing industry is capital-intensive, and firms typically have significant investment in fleet holdings.

Variable Equipment Market Value

Fluctuations in market value for rental or leased equipment affect a firm’s fleet management effectiveness because companies rely on the sale of used equipment as a source of revenue.

Aug 6, 2026 - Major Equipment Rental Firms Posts Solid Q2 Results

• Rental Management reported strong second-quarter growth at Herc Holdings and United Rentals, with both companies raising their 2026 outlooks. Herc's revenue rose 20% to $1.2 billion from $1 billion, while the company earned net income of $19 million, compared with a $35 million loss a year earlier. Herc increased its full-year equipment rental revenue forecast to $4.38 billion to $4.48 billion from $4.28 billion to $4.40 billion. United Rentals' revenue increased 12% to a record $4.41 billion from $3.94 billion, and net income rose 21% to $753 million. United Rentals raised its full-year revenue outlook to $17.5 billion to $17.8 billion from $16.9 billion to $17.4 billion.
• US construction and engineering spending in 2026 is expected to decline just over 1% after remaining flat in 2025, according to FMI’s third-quarter 2026 North American Engineering and Construction Outlook. Data center construction will provide the strongest demand, rising 21%, while conservation and development and religious construction each grow 13%. Residential improvements are forecast to increase 5%, supported by home equity spending and construction cost inflation. Power, highway and street, sewage and waste disposal, and several other infrastructure segments should post modest growth, with power expected to accelerate sharply beginning in 2027. Manufacturing construction faces the steepest decline, falling 17% as semiconductor and battery plants move beyond their most construction-intensive phases. Warehouse spending is forecast to decrease 10%, lodging falls 9%, and high mortgage rates and affordability constraints reduce single-family spending by 4%.
• US manufacturing activity expanded in July 2026 for the seventh consecutive month, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in July rose to 55.6% from a reading of 53.3% in June. A reading above 50% indicates manufacturing expansion. The New Orders Index increased in June by 0.7 percentage points to 56.7%. The June Production Index rose 6.3 percentage points to 58.5%. Of the 18 manufacturing industries tracked by the ISM, 15 reported growth in July: printing & related support activities; apparel, leather, and allied products; electrical equipment, appliances, and components; primary metals; nonmetallic mineral products; transportation equipment; miscellaneous manufacturing; textile mills; machinery; computer and electronic products; food, beverage & tobacco products; wood products; plastics & rubber products; furniture and related products; and fabricated metal products. Chemical products was the only manufacturing subsegment that reported a contraction in July.
• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume increased 2.5% to $10.5 billion in June 2026 compared to the same month in 2025. ELFA President and CEO Leigh Lytle said, "Equipment demand rebounded in June, and our forecast for total deal activity at year-end reached an all-time high. 2025 started off with a bang, and some cooling was always expected. Even with some easing from peak levels, business activity over the first half of 2026 is up over 11% from the same period last year. Financial conditions remain healthy. The industry-wide delinquency rate dropped to a multi-year low, and losses remain modest. As has been the case for over a year, the industry remains well-positioned to meet the resurgence of tariffs, hostilities in the Middle East, and potential Fed rate increases later this year."

Industry size & Structure

The average commercial equipment rental company operates out of one to two locations, employs 24 workers, and generates nearly $11 million in annual revenue.

• The commercial equipment and machinery rental industry consists of about 8,521 firms that employ 201,000 workers and generate $93 billion annually.
• The construction, transportation, mining, and forestry sector accounts for about 35% of firms and 58% of industry revenue. The miscellaneous (manufacturing, medical, audio/visual, theatrical and motion picture, modular/mobile buildings, energy/power generating) sector accounts for 60% of firms and 41% of revenue. The office machinery and equipment sector accounts for 5% of firms and 1% of revenue.
• The industry is concentrated; the top 50 companies account for about 53% of industry revenue.
• Large companies include Aercap Group (commercial aircraft), United Rentals, and GATX. Large firms may have international operations.