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.

Oct 6, 2026 - Manufacturing Growth Supports Equipment Demand

• The Institute for Supply Management says US manufacturing activity expanded again in September, with new orders, production, employment, and order backlogs all remaining in growth territory. The Manufacturing PMI registered 54.5, while the New Orders Index rose to 55.3 and the Backlog of Orders Index increased to 56.4. Index readings over 50 indicate expansion; under 50 suggests contraction. At the same time, manufacturers reported faster price increases and continued shortages of electrical components, metals, and other inputs. Commercial equipment rental and leasing firms could benefit if expanding factory activity supports demand for material-handling, construction, maintenance, and industrial equipment, although rising fuel and equipment costs may pressure fleet acquisition expenses and rental margins.
• Sharply higher diesel and construction material costs are squeezing contractor margins and contributing to project delays and cancellations, according to Equipment World. The average price of US on-highway diesel reached $6.29 per gallon in mid-September, according to the US Energy Information Administration. August producer prices for diesel, aluminum, steel, copper, and other construction inputs were substantially higher than a year earlier. Commercial equipment rental and leasing firms may experience mixed effects from these cost pressures. Contractors seeking to conserve cash could favor renting over purchasing equipment, thereby supporting rental penetration, but delayed or canceled projects could reduce utilization and demand. Higher fuel, transportation, and equipment acquisition costs may also increase rental companies' operating expenses and pressure margins unless rates adjust accordingly.
• For Construction Pros reports that Skanska expects US construction demand to remain strong but increasingly concentrated in data centers, infrastructure, power generation, advanced manufacturing, pharmaceutical production, and selected health care markets. On the other hand, the office, retail, and higher education construction markets remain relatively soft. Labor availability, power constraints, and long lead times for equipment and materials remain important project-delivery challenges. Commercial equipment rental and leasing companies could benefit from sustained activity in large, equipment-intensive projects, particularly where contractors need flexible access to machines without committing capital to ownership. However, uneven construction conditions may require rental firms to carefully position fleet and branches around the strongest geographic and end-market demand.
• US equipment rental revenue, which includes the construction/industrial and general tool market segments, is expected to rise 3.4% to $83.5 billion in 2026, according to a recent forecast by the American Rental Association (ARA). The construction and industrial equipment market is forecast to grow 4.4% in 2027, then rise another 5.1% in 2028. However, the ARA forecast could be altered by potential headwinds, including the impact inflation, interest rates, and tariffs have on construction spending. The ARA expects event rental industry revenue to grow 6.5% in 2026 to $6.2 billion, then rise another 8.3% in 2027 and 6.4% in 2028.

Industry size & Structure

The average commercial equipment rental company operates out of one to two locations, employs 24 workers, and generates nearly $13.3 million in annual revenue.

• The commercial equipment and machinery rental industry consists of about 8,521 firms that employ 203,400 workers and generate $113.4 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.