Commercial Equipment Rental and Leasing
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,500 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.
Industry size & Structure
The average commercial equipment rental company operates out of a single location, employs 23 workers, and generates nearly $10 million in annual revenue.
- The commercial equipment and machinery rental industry consists of about 8,500 firms that employ 193,000 workers and generate $82 billion annually.
- The construction, mining, and forestry sector accounts for about 37% of firms and 50% of industry revenue. The miscellaneous (manufacturing, medical, audio/visual, theatrical and motion picture, modular/mobile buildings, energy/power generating) sector accounts for 58% of firms and 46% of revenue. The office machinery and equipment sector accounts for 5% of firms and 4% of revenue.
- The industry is concentrated; the top 50 companies account for about 55% of industry revenue.
- Large companies include Aercap Group (commercial aircraft), United Rentals, and GATX. Large firms may have international operations.
Industry Forecast
Commercial Equipment Rental and Leasing Industry Growth
Recent Developments
Apr 3, 2025 - Construction Spending Rises, but Headwinds Loom for Private Projects
- The total value of construction put in place increased 0.7% in February compared to January, according to the US Census Bureau. Construction spending is a key demand driver for equipment rental and leasing. Spending on nonresidential projects rose 0.3% to a record $1.26 trillion. Residential spending grew 1.3%. Highway and street construction projects accounted for 40% of February’s nonresidential gains as public projects drove growth, according to Associated Builders and Contractors (ABC) analysis of US Census Bureau data. While public nonresidential spending was up 6.1% in February over the same month in 2024, private nonresidential spending has not kept pace, growing just 2.5% over the same period. In a press release, ABC’s Chief Economist Anirban Basu said, “The mix of high interest rates, tight lending standards, and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months.”
- In April, an Illinois-based roofing firm filed a proposed class action lawsuit in a Chicago federal court accusing several major equipment rental firms of unlawfully fixing prices, according to Reuters. The suit alleges that United Rentals, Sunbelt Rentals, HERC, H&E Equipment, and Sunstate Equipment violated antitrust law by sharing nonpublic pricing, inventory, and competitive data with software firm Rouse Services, a provider of rental rate benchmarking data for the industry. The lawsuit claims the data sharing by the large rental firms allowed them to increase their rates without worrying about being undercut by smaller competitors. Reuters reported that Rouse Services and its parent company RB Global, United Rentals, and Sunbelt Rentals did not immediately respond to requests for comment. Other industries – including hotels and multifamily housing – have also faced lawsuits alleging anticompetitive practices enabled by revenue management software platforms.
- The US commercial equipment rental and leasing industry is expected to experience steady sales growth in the coming years, which outpaces the overall economy's growth. The industry’s year-over-year sales rose 4.8% in 2024 after increasing 8.8% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to slow to 3.8% in 2025, then see average annual growth of about 4.7% through 2029, according to Inforum and the Interindustry Economic Research Fund, Inc.
- The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed that new business volume decreased by 3.7% to $9.7 billion in February 2025 compared to the same month in 2024. On a monthly basis, the CFI was up 3.7% in February. ELFA CEO and President Leigh Lytle said, “The latest CFI release showed a return to normalcy in February. Demand for equipment returned to healthy levels after whipsawing the last few months due to a historic swing in financing activity at banks.” Lytle added, “Financial conditions weakened a little as losses rose, but accounts past 30 days remained low, and new applications remained strong. 2025 is shaping up to be bumpy, but so far, the data indicates that demand for investment equipment has weathered the storm. We’re closely watching financial conditions for signs of erosion, but we expect the industry to have a solid year as long as the economy avoids a recession.”
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