US Product Rental and Leasing Sector NAICS 532

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."
• A decline in foreign tourism to the US could lead to weaker demand for rental cars. Fewer foreign visitors are traveling to the US amid higher fees, more stringent visa requirements, travel restrictions, and harsh rhetoric from the Trump administration, according to The New York Times. According to some industry estimates, there were 4.5 million fewer international visits to the US in 2025 compared to the previous year. According to Tourism Economics, visits are down from nearly every part of the world, led by Canada, which has seen a 26% drop through November. Tourism from Germany, France, and South Korea is also down sharply. About 11 million fewer hotel rooms were booked in the US in 2025 compared to 2024, according to a hospitality market analyst with property research firm CoStar. While domestic tourism has surpassed pre-pandemic levels and somewhat cushioned the blow, it has not been enough to offset the decline in spending by foreign travelers.

• 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.
• Amid rising apparel costs and shifting consumer habits, clothing rental platforms are gaining traction as budget-friendly alternatives, according to NPR. More than half a million women rent clothes, finding it cheaper and more flexible than buying. The apparel rental industry is valued at $2.6 billion and is projected to more than double by 2035, according to Future Market Insights. The industry has benefited from inflation and tariffs, which have driven up clothing prices. Companies like Nuuly and Rent the Runway are expanding inventory to meet holiday demand, though tariffs and supply chain delays pose challenges. Rental services appeal to consumers seeking fresh wardrobes without long-term commitments, offering convenience and cost savings while reshaping how fashion is consumed.