Eye On Rental: Equipment and Tool Rental Industry 2025 – Strength and Growth

In my opinion, the American equipment rental industry is strong and is on the brink of phenomenal growth. I believe the combination of relatively low inflation, increased infrastructure and construction spending and a more business-friendly administration all point to considerable potential for rental companies.

Technology and social media continue to have a dramatic effect on how customers communicate with rental companies. Certainly, rental companies that have fine-tuned these communication tools are the beneficiaries of noticeably more business.

There are plenty of acquisitions by larger, multi-location rental companies and I sense the pace of acquisitions is increasing. This is not necessarily something to be feared. Sometimes, multi-location companies have a larger equipment focus so certain customer types may become underserved. (Also, some of my customers want to position their company to be bought for a very sizeable check sometime in the future.) Either way, improving the company with better financial discipline, procedures, marketing, and the like will prove its worth. Also, when working with my rental business owner customers, I often discover cases where a stronger focus or a different focus in product offerings can lead to much more growth and profitability. I also believe that a stronger niche or new niches help to reduce the impact of increased competition.

Improving the company with better financial discipline, procedures, marketing, and the like will prove its worth.

The labor shortage remains severe but is showing a few signs of lessening in some areas. This highlights the importance of even more emphasis on retention strategies as well as efficiency strategies.

In many ways, it is wiser to concentrate more on what is happening in the communities you serve and take a more in-depth and objective look at the state of your own rental company. I also believe that it is very important to adjust your focus and strategies now for the remainder of the year and beyond. To capitalize on more growth and profitability, it would be wise to analyze what is currently being done and what segments of one’s business need to change. As I’ve pointed out on numerous occasions in the past, it is important for the health, growth and profitability of your business to have a more fine-tuned and efficient way of operating the business.

Be certain that your rental rates, as well as related charges and procedures, have been comprehensively reviewed and adjusted. It’s likely that relatively minor adjustments could yield sizable results.

Of course, companies that are clinging to the old ways (such as not having relevant marketing, asset, and personnel management systems) are not as likely to participate in the growth as forward-thinking rental company owners. Investing in these improved processes, procedures, and systems increases the probability of super-success. Huge opportunities can be missed by procrastination or being overly cautious.

In many ways, it is wiser to concentrate more on what is happening in the communities you serve and take a more in-depth and objective look at the state of your own rental company.

On the other hand, there are opportunities that one should approach with caution. Two examples are branching out with an associated business and adding another location. One of the strengths of independent rental companies is that they can pivot quickly. This agility can also prove to be a negative if the new direction is not vetted properly. As I commonly point out, sometimes the allure and excitement of a new opportunity can cloud the judgement of even the most successful rental business operators. So, whether one is considering adding another location or embarking on another endeavor that would require a considerable investment of financial, time, and energy resources, it is wise to be extra cautious. The new opportunity might turn out to be a drag on your company instead of a super-charger you intended.

And finally, have more fun! Reduce stress where you can so you can better enjoy what you do. One doesn’t read about having fun in business very often, but whether you refer to this as “fun” or “satisfaction,” I believe that having more enjoyment at work is important. It is important to your team, and it should become something you strive for personally. Large doses of stress aren’t good for anyone. Analyze your business and plan ways to reduce this stress and increase your and your team’s job satisfaction.