By Johnnie Martinez II – April 2, 2025 – Equipment Finance News
North American traditional rental activity rose in 2024, as equipment-as-a-service companies benefited from an improving supply chain and stronger macroeconomic conditions.
Equipment-as-a-service (EaaS) companies in North America maintained stability last year, as traditional rental activity increased 20.5% year over year and workforce accommodation rental activity rose 3.6% YoY, according to global investment bank Houlihan Lokey’s recently released EaaS market update.
Meanwhile North America specialty rental fell 10.6% YoY, according to the report. Despite the overall decline, United Rentals saw a 30.5% YoY growth in its specialty business, driven by industrial and construction megaprojects and investments in telematics and tracking technology, according to the company’s Jan. 29 earnings release.
EaaS companies built on earlier momentum as interest rate declines led to improved financing conditions, according to the report. A Federal Reserve rate cut in December further supported business investment, but inflation continued its downward trajectory, easing from 2.4% in September to 2.1% by December of 2024.
Demand in the EaaS sector remained strong, driven by infrastructure spending and strategic expansions, though M&A activity slowed toward yearend.
