Editor's Note: EquipmentWatch and Equipment World are both owned by Fusable.
The latest report from EquipmentWatch shows the construction and industrial equipment rental markets continuing a four-year growth trend, with rates also rising – some dramatically.
Average retail rental rates showed a modest increase in the first three months of this year, according to EquipmentWatch’s first-quarter 2025 Rental Rate Report.
However, the report shows some categories of equipment experienced dramatic rate increases, but it notes that such spikes were “driven by classification changes within a major peer-to-peer platform rather than market demand.”
Categories seeing such hikes included dozers (29.53% weekly rates), crawler excavators (25.14% weekly) and forklifts (103.33% weekly).
For other popular categories, average first-quarter weekly rates rose for the following equipment in the U.S. and Canada:
- Compact track loaders – 3.28% increase to $1,349.
- Skid steer loaders – 2.21% increase to $1,124.
- Compact crawler excavators – 0.55% increase to $1,223.
- Wheel loaders – 1.85% increase to $2,751.
- Telehandlers – 12.43% increase to $2,103.
- Single-drum vibratory compactors – 0.61% increase to $1,810.
- Electric scissor lifts – 0.52% increase to $642.
EquipmentWatch notes that the above retail rental rates “are an overall average by equipment type and are derived from average rates advertised by distributors throughout the United States and Canada. All rates included were either publicly advertised online or obtained through exclusive rental house partnerships.”
Growth in the rental industry is expected to continue throughout 2025, according to the American Rental Association. It projects the U.S. construction and general tool rental industry to increase 5.2% in 2025 for a total of $87.5 billion but slow to 4.1% and 4%, respectively, in 2026 and 2027.
Recent rental equipment company earnings reports bear out the growth trend so far.
The EquipmentWatch report notes ARA’s finding that more businesses are choosing rental over ownership, with the U.S. rental penetration rate increasing for the fourth consecutive year and hitting 57% in 2024. That’s above the pre-pandemic peak.
“This long-term trend signals growing confidence in rental as a core part of equipment strategy,” EquipmentWatch says.
To see the full EquipmentWatch Quarterly Rental Rate Report, click here. The report provides interactive charts, regional breakout data, and average daily, weekly and monthly rental rates for the most popular equipment categories.
