Rental Equipment Summary October 2025
By Jarrett Harris, Director of Research
Rental Demand Rises, Cost Efficiency Focus Intensifies
Rental equipment demand improved during 3Q25, both quarter to quarter and year over year, as project volumes are strong and ongoing economic and trade uncertainty is pushing more customers to rent instead of buy. Utilization remained higher year over year, even as fleets have grown, though operators are focusing on trimming inventory heading into year end. Rental rates are flat to slightly up, but—as we’ve noted for several quarters—rising equipment and operating costs continue to pressure margins. With the prospect of significant rental rate hikes looking increasingly unlikely, executives are placing more emphasis on efficient fleet management. Looking ahead, most expect to grow CapEx in 2026, driven by machine cost inflation and a push to refresh aging fleets rather than expand total size. While some market challenges remain, sentiment appears to be improving.