Infrastructure and equipment markets surveyed for the 2025 Annual Report & Forecast fell slightly short of expectations in 2024, mainly because one market lagged the others: equipment rental. The outlook for 2024 was “very good,” but the overall result for business in these markets was “good” in 2024.
Infrastructure funding appears to be driving positive outlooks for water and transportation, with both expecting “very good” business in 2025. Rental’s outlook improves, too, to “average.” Fleet managers are cautious going into 2025 as inflation continues to affect budgets for acquisitions and maintenance.
Contract volume trends in 2024 were mixed. The overall net (the percentage expecting increased volume minus the percent expecting decreased) was 16%, although that did not include 2024 data from the rental firms. By vocation, transportation beat expectations with a net of 23% (44% reporting increases minus 21% reporting decreases), and water fell short with a net of 29% (40% increasing minus 11% decreasing) compared to a forecast net of 52%.
Expectations for 2025 are robust, with an industry net of 35% (47% expecting increased revenue minus 12% expecting a decline). Rental has the highest expectations with a net of 52% (61% expecting an increase minus 9% expecting a decrease), followed by water with a net of 43% (47% minus 4%).
Inflation continues to concern all respondents with 72% expecting material pricing to increase in 2025, similar to expectations for 2024. The net for water infrastructure is the highest of the vocations at 84%, with the 87% expecting increases offset by only 3% who expect material prices to decrease. Only 8% of fleet managers expect material prices to decline in 2025, leaving a net of 63% when subtracted from the 70% who expect increases.
Corresponding increases in bid prices are expected by 67% of respondents. Again, water reports the highest net, at 76%, with only 4% expecting decreases against the 80% expecting to increase bid prices. The rental market has the lowest net, at 30% (42% expecting an increase minus 12% expecting a decrease).
