US Product Rental and Leasing Sector


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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 51,175 product rental and leasing establishments in the US provide the use of commercial and consumer goods in return for lease or rental payments. Establishments may rent or lease nonfinancial intangible assets, including patents and trademarks (but excluding copyrighted works).

Seasonal, Uneven Demand and Cash Flow

Cash flow in the equipment rental/leasing sector is seasonal and driven by the dynamics of downstream industries.

Variability in Residual Value

Firms are exposed to financial risk when the market value of a vehicle or rental good is less than its depreciated value (residual value) when it is sold.

Industry size & Structure

The product rental and leasing services sector is comprised of 51,175 establishments that employ 585,900 workers and generate $210 billion in annual revenue, according to government sources.

    • The product rental and leasing services sector represents 1.3% of the nation's Gross Domestic Product (GDP) and employs 0.4% of the country's workers.
    • The sector is concentrated with the 20 largest firms representing 48% of revenue.
    • In addition to employer establishments, the product rental and leasing services sector has 85,000 owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are commercial and industrial machinery and equipment rental and leasing (37%); automotive equipment rental and leasing (31%); and consumer goods rental (24%). The owners of nonemployer establishments typically perform the work and may outsource support functions like marketing and accounting.
    • The product rental and leasing sector has shed about 4,100 establishments annually, which equals about 8.7% of existing establishments. However, the sector has added about 4,300 new establishments annually, which is equivalent to 8.4% of existing establishments. As a result, the sector has an average loss rate of 0.3%.
    • The product rental and leasing sector is forecast to grow its employment base by 4.4% overall in 2023-2033, which is slightly higher than the national average of 4% for all jobs, according to the Bureau of Labor Statistics.
                                  Industry Forecast
                                  US Product Rental and Leasing Sector Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Apr 7, 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 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.”
                                  • In February, several trade associations and companies formed the American Vehicle Owners Alliance (AVOA) to advocate for owners – individuals and businesses – to control their vehicles’ data. Modern vehicles generate, store, and transmit troves of data, and some manufacturers limit data access and control or charge fees for it. The executive director of the American Car Rental Association (ACRA) said, “Rental car operators rely on this data to enhance the customer experience and improve vehicle safety. Giving vehicle owners — including rental car companies — full access to their own data is essential for a competitive and consumer-friendly rental market.” Members of the AVOA include the ACRA, Hertz, the National Consumer League, the National Association of Fleet Operators, Enterprise Mobility, the Truck Renting and Leasing Association, Safelite, and The American Property Casualty Insurance Association. The AVOA aims to work with Congress and the Trump administration to ensure owners maintain control over vehicle data.
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