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    1. Industry News

    ARA Projects 5% Growth in 2025

    March 18, 2025
    Last year, the industry grew 8%.
    67d9890318c36f8641b814ba Ara

    The U.S. construction and general tool rental industry finished 2024 as an $83.3 billion industry, up 8% from 2023, according to the American Rental Association (ARA) updated forecast. It projects 5.2% growth this year, to $87.5 billion.

    ARA project growth to slow to 4.1% and 4% in 2026 and 2027, respectively, citing moderated investment in both the construction and general tool industries.

    More on fleet management

    “Economic uncertainty and relatively high financing costs…weigh on the outlook for investment,” said Scott Hazelton, managing director at S&P Global, in a statement. The international forecasting firm 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.”

    The association said that the construction and industrial equipment (CIE) rental penetration rate increased for the fourth year in a row to 57% in 2024, making penetration higher than the pre-pandemic peak.

    “Equipment rental penetration hit a record in the past quarter as rental customers continue to accept the solutions provided by rental companies,” said Tom Doyle, ARA VP, program development, in a statement. “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.”