American Rental Association Releases Updated Equipment, Event Economic Forecasts for North America

In its latest economic forecast, the American Rental Association (ARA) indicates that the combined U.S. construction and industrial equipment (CIE) and general tool rental industry is projected to increase by 3.6 percent in 2026, totaling $83.5 billion. This is an increase from last quarter’s projection of a 2.8 percent increase in 2026 totaling $82.9 billion.

“Rental revenue continued to grow, particularly in areas where the large and megaproject work is,” said Tom Doyle, ARA vice president, program development. “The trend toward more rental versus ownership also continues. Rental tailwinds include project uncertainty, market volatility, sustainability, financial flexibility for the rental user and the high cost of owning. Rental companies are focused and delivering better solutions.”

Beyond 2026, growth in combined U.S. CIE and general tool rental revenue is projected to grow at a pace of 3.8 percent in 2027 and 4.4 percent in 2028.

Scott Hazelton, managing director at S&P Global, the international forecasting firm that compiles data and analysis for the ARA forecast, said equipment rental’s projected growth over the next couple of years relates to the anticipated shedding of “uncertainty around so many things — geopolitics, energy prices, tariffs and a lot of things that are holding back investment decisions that, as we get more clarity, will get better and better.”

Hazelton said growth in the CIE segment is in stasis because of a construction market that is currently stagnant, while the general tool segment is advancing. 

“This year [general tool] is a little bit weak but overall, in the outer years, it is strong. Part of that is increased adoption, part of that is an increased housing outlook and part of that is the manufacturing sector that gets a little more strength as we get past some of these tariff-inflicted pains of last year.” 

In Canada, the combined CIE and general tool rental industry is forecast to grow 5 percent this year, totaling $6.3 billion. This is an increase from the previous quarter, when this segment was projected to reach $6 billion in 2026.

Beyond 2026, growth in combined Canadian CIE and general tool rental revenue is projected at 5.8 percent in 2027 before dipping slightly to 5.4 percent in 2028. The softer growth projected for overall Canadian equipment rental revenue beyond 2027 is attributed to moderations in rental revenue as construction markets and industrial production cool.

Event rental segment

Also in its updated forecast, ARA shared that the U.S. event rental industry is forecast to grow 8 percent in 2026 to total $6.1 billion — an increase from last quarter’s projection of 5.8 percent growth to total $5.9 billion this year.

Beyond 2026, growth in U.S. event rental revenue is projected to soften to 5.5 percent and 4.6 percent in 2027 and 2028 respectively. The Canadian event rental industry is now expected to grow 6.3 percent in 2026, totaling $280 million. Beyond 2026, growth in Canadian event rental revenue is projected at 7.2 percent and 5.6 percent in 2027 and 2028 respectively.

“The updated forecast points to a solid year ahead for the U.S. event rental industry, with growth around 8 percent in 2026 before moderating to the mid-5 percent range in 2027,” said Bryan Bolt, ARA senior director of tenting solutions. “While overall momentum remains positive, the easing reflects broader economic headwinds, including slower GDP growth, elevated inflation and higher interest rate conditions. Canada shows a slightly steadier trajectory, supported by improving investment activity and a rebound following a softer 2025.” 

For more in-depth economic data, learn more about Rentalytics™ at ararental.org/ARA-Rentalytics.