The American Rental Association (ARA) is forecasting continued growth in the U.S. construction and industrial equipment (CIE) and general tool rental industry, with revenue expected to increase through 2028.
The latest ARA quarterly forecast projects combined U.S. CIE and general tool rental revenue will grow 3.4% in 2026, reaching $83.5 billion. The projection is essentially unchanged from the previous quarter.
Revenue growth is projected to accelerate to 4.4% in 2027 and 5.1% in 2028.
Tom Doyle, ARA vice president, program development, said the latest ARA Rentalytics updates indicate continued movement toward equipment rental.
“The latest ARA Rentalytics updates confirm the equipment rental structural changes toward rentals,” said Doyle. “The rental revenue increase indicates the preference for renting over ownership. The reasons are many for the growth, including the access to the equipment versus the asset ownership and the economics of renting. While rental revenue has increased, the results are mixed. If you have any of the large infrastructure projects or data center buildouts, you’re in a stronger market with generally better results.”
S&P Global managing director Scott Hazelton said U.S. economic growth has remained resilient, while inflation, energy costs, interest rates, housing starts, and construction spending could influence the outlook.
“One of the risks to the forecast is what is happening in the Middle East. The war [with Iran] is not the problem for the U.S; the problem is the transmission of inflation through energy rates — both because of lower supply and because of the risk of transporting through the Strait of Hormuz,” Hazelton said, adding that the larger concern for the U.S. economy is the cost of the energy and its impact on inflation.
Hazelton said the risks from oil prices and tariffs currently are relatively low.
The ARA projects the combined Canadian CIE and general tool rental industry will grow 5.2% in 2026, totaling $6.3 billion.
Growth is projected at 5.4% in 2027 and 5.5% in 2028. The ARA attributed the projected increase in overall Canadian equipment rental revenue to infrastructure spending and oilfield development.
The latest forecast also includes projections for event rental revenue. U.S. event rental revenue is expected to grow 9.5% in 2026 to $6.2 billion, compared with the previous forecast of 8% growth to $6.1 billion.
Canadian event rental revenue is projected to increase 6.1% in 2026 to $280 million, followed by projected growth of 7.4% in 2027 and 5.6% in 2028.
“Event rental revenue accelerated in the U.S. and Canada, showing a solid increase over 2025. Those increases are forecast to continue in 2027,” Doyle said.
Aug 25, 2026
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