The ARA shares positive economic growth forecast for the U.S. and Canada
The equipment rental industry is projected to grow 5.2 percent in 2025, totalling $87.5 billion

The American Rental Association (ARA) updated forecasts for the United States and Canada equipment rental industries.
The ARA shares that the U.S. construction and general tool rental industry finished 2024 as an $83.3 billion industry, up 8 percent from 2023. Additionally, the industry is projected to grow 5.2 percent in 2025, totalling $87.5 billion.
Beyond 2025, growth is projected to slow to 4.1 percent and 4 percent in 2026 and 2027 respectively. This stagnation corresponds with projected moderated investment in both the construction and general tool industries in the coming years.
Notably, as businesses chose rental over ownership, the construction and industrial equipment rental penetration rate increased for the fourth year in a row to 57 percent in 2024, making penetration higher than the pre-pandemic peak.
In Canada, the industry rounded out 2024 with $5.73 billion in revenue, a 6.1 percent growth over 2023. The Canadian construction and general tool rental industry is projected to total $5.95 billion, a 3.7 percent growth. Shortly, the Canadian rental industry is projected to grow 7.2 percent and 6.7 percent in 2026 and 2027.
The equipment rental industry shares positive changes
Aside from updated revenue projections, ARA also shared industry contributions to key economic metrics.
The equipment rental industry directly, indirectly, or induced supplies 666,000 jobs in the U.S. The industry provides $47.4 billion in wages and contributes $115 billion in GDP, directly and indirectly.
"Economic uncertainty and relatively high financing costs, underscored by the recent Fed decision, weigh on the outlook for investment," says Scott Hazelton, managing director at S&P Global, the international forecasting firm that compiles data and analysis for the ARA forecast. "However, this is little risk of a serious downturn, and equipment rental can gain penetration in uncertain times. Our equipment rental outlook for 2025 has been lowered from our view last quarter, however, we still project equipment rental growth at about twice the rate of real GDP and inflation."
"Equipment rental penetration hit a record in the past quarter as rental customers continue to accept the solutions provided by rental companies," says Tom Doyle, ARA vice president, program development. "For 2025, while the forecast calls for growth in the equipment segment, that growth softens. Our quarterly ARA member surveys confirmed they expect growth in Q1 of 2025."