US Product Rental and Leasing Sector NAICS 532

Aug 4, 2025 - Equipment Rental Firms Notch Q2 Revenue Growth

• Two major US equipment rental firms notched robust revenue growth in the second quarter 2025. United Rentals’ Q2 2025 revenue was $3.9 billion, up 4.5% over the same period in 2024. The company’s rental revenue rose 6.2% to $3.22 billion in the second quarter over $3.2 billion in Q2 2024. United Rentals revised its full-year revenue outlook to $15.8 billion to $16.1 billion compared to a previous projection of $15.6 billion to $16.1 billion. Herc Rentals’ revenue in the second quarter increased 18% to $1 billion compared to Q2 2023. The increase in year-over-year revenue was partly due to recent acquisitions, including H&E Rentals.
• US manufacturing activity contracted in July 2025 for the fifth consecutive month, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in July fell to 48% from a reading of 49% in June. A reading above 50% indicates manufacturing expansion. July’s New Orders Index decreased by 0.7 percentage points to 47.1%. The August Production Index rose 1.1 percentage points to 51.4%. Several respondents to the July ISM survey said their businesses faced tariff-related purchasing and supply chain challenges. Of the 18 manufacturing industries tracked by the ISM, eight reported growth in July: apparel, leather, and allied products; nonmetallic mineral products; textile mills; miscellaneous manufacturing; furniture and related products; and primary metals. Industries reporting contractions in July included printing & related support activities; paper products; chemical products; machinery; wood products; fabricated metal products; computer and electronic products; transportation equipment; electrical equipment, appliances, and components; and food, beverage & tobacco products. US manufacturing activity is a demand driver for commercial equipment rental and leasing.

• Domestic summer travel demand is largely offsetting a decline in international travel to the US, according to a second-quarter report by CarTrawler, a B2B technology provider to the car rental industry. Inbound travel to the US is expected to decline by 9% in 2025 from the prior year, primarily due to shifting US trade and travel policies, according to Tourism Economics. However, in May 2025, more than 40% of Americans surveyed said they planned to take a trip within the US within the next six months, according to reporting by the New York Times. Among Americans who are planning a trip, 70% plan to travel in the US, according to Bank of America’s 2025 Summer Travel and Entertainment Outlook.
• North American construction and engineering spending in 2025 is expected to grow by 1% after increasing an estimated 7% in 2024, according to FMI’s third-quarter 2025 North American Engineering and Construction Outlook. With growth of 32%, the data center sub-sector will lead 2025 nonresidential construction, followed by sewage and waste disposal (7% growth over 2024), amusement and recreation (+6%), water supply (+6%), educational (+4%), and public safety (+4%). Commercial construction spending is expected to decline 4% in 2025 amid a 4% drop in warehouse demand, which accounts for more than half of annual commercial spending. Lodging construction spending is forecast to fall by 3%, and stubbornly high office vacancies are expected to hold new office construction to 2% growth in 2025. Amid high mortgage interest rates and a lack of affordability, single-family construction spending is forecast to rise by 1% in 2025. A recent jump in new apartment supply and unfavorable cost conditions will reduce multifamily spending by 9% in 2025. In addition to strong spending on water and sewage projects, other segments of the infrastructure sector are projected to see spending increase in 2025, including power (+3%) and highway and street (+2%).