The construction equipment rental industry has experienced remarkable transformation over recent years, with 2019 and 2020 marking significant milestones in how building contractors approach equipment acquisition. According to the American Rental Association (ARA), equipment renting in the construction sector reached an all-time high, with 93 percent of contractors reporting they rented equipment in 2019. This shift represents a fundamental change in construction business strategy. For a deeper look at how rental market visibility strengthens contractor operations, read our article on Equipment Rental Profiles Building a Stronger Rental Business. This article examines the key equipment rental industry trends that defined 2019 and set the stage for 2020, drawing on insights from BigRentz CEO Scott Cannon.
The Shift from Equipment Ownership to Rental
The rental model has been steadily gaining ground in construction since the early 2000s, with the trend accelerating after the 2008 financial crisis. Contractors increasingly prefer renting over buying equipment, and this preference has reshaped how construction projects budget and plan for machinery needs. Scott Cannon, CEO of BigRentz, describes this as a consistent long-term pattern that shows no signs of reversing. To understand how technology platforms are accelerating this shift, see How Bigrentz Is Driving the Equipment Rental Industry.
Why Contractors Prefer Renting
The economics of equipment rental present clear advantages that building contractors have recognized across project sizes and types:
- Lower upfront capital requirements – Renting eliminates large capital expenditures for machinery that may only be needed for specific project phases.
- Reduced maintenance and storage costs – Rental companies handle servicing, repairs, and storage, freeing contractors from these overhead expenses.
- Access to newer equipment – Rental fleets are typically updated regularly, giving contractors access to the latest models with improved safety features and fuel efficiency.
- Flexibility for project fluctuations – Contractors can scale equipment up or down based on project demands without being locked into ownership commitments.
- Lower liability exposure – Rental agreements transfer certain equipment-related risks back to the rental provider.
The ARA study confirmed that 92 percent of contractors who rented equipment in 2019 expected to rent at least as much in 2020, while 52 percent planned to rent even more. These numbers signal that the rental model is not merely a temporary preference but a structural shift in construction equipment strategy.
The Impact of the Sharing Economy on Equipment Access
The rise of digital marketplaces has made equipment rental more accessible than ever. Platforms like BigRentz connect contractors with a vast network of rental providers, allowing them to compare options, check availability, and book equipment in a matter of minutes. This marketplace approach has lowered barriers to entry for smaller contractors who previously could not justify maintaining their own equipment fleets.
Weather-Driven Rental Patterns in 2019
Construction equipment rental typically follows predictable seasonal patterns, with spring and summer months seeing higher activity as better weather enables more building work. However, 2019 deviated from these norms in notable ways due to extreme weather conditions across the United States. For context on how the industry adapted to changing conditions, review the Ara Rental Industry Forecast 2022 What Equipment Rental analysis.
An Unusual Year for Seasonal Demand
BigRentz observed two notable anomalies in 2019 rental patterns:
- August remained flat – This month typically shows significant year-on-year growth for BigRentz, but in 2019 it stayed level with the previous year, defying expectations.
- October surged 30 percent – Business in October rose dramatically compared to the same period in 2018, making it one of the strongest months of the year.
Cannon attributes these shifts to record-setting wet weather. The United States experienced one of its wettest periods in recorded history over the preceding 12 to 18 months. This caused construction delays in months that would normally be productive, pushing equipment demand into later months when weather conditions finally improved.
Lessons for Building Contractors
The 2019 weather patterns taught contractors several important lessons about rental planning:
- Equipment demand can shift unpredictably based on weather, so maintaining flexible rental agreements is valuable.
- Seasonal assumptions should not be taken for granted; climate patterns are creating new timing dynamics.
- Building contingency plans for weather delays should include rental scheduling flexibility.
- Contractors who locked in rental contracts early in the season were better positioned when demand surged in unexpected months.
Most In-Demand Equipment by Volume and Revenue
Understanding which equipment types drove rental activity in 2019 helps contractors make informed decisions about their project planning and budgeting. The data reveals a clear distinction between the most frequently rented equipment and the equipment generating the highest revenue.
Rental Equipment Categories Compared
| Equipment Category | Rental Volume | Revenue Contribution | Typical Rental Duration |
|---|---|---|---|
| Scissor Lifts | Highest | Moderate | Short to medium |
| Large Booms and Cranes | Lower | Highest | Long |
| Generators and Power Equipment | Growing rapidly | Moderate to high | Variable |
| Temporary Air Conditioning | Seasonal spike | Moderate | Short |
| Heavy Earthmoving Equipment | Moderate | High | Medium to long |
Scissor lifts ranked as the most rented equipment item across the industry by unit volume. These versatile machines are essential for a wide range of building tasks, from electrical work to painting and installation. However, despite their high volume, they do not generate the highest revenue for rental companies.
Large booms and cranes, while rented less frequently, accounted for the majority of BigRentz revenue. These high-value items command higher daily rates and tend to stay on rent for longer durations, making them the financial backbone of the rental industry. Cannon notes that even though the company rents fewer of these units, they contribute a disproportionately large share of revenue because of their size and extended rental periods.
Rising Demand for Power and Climate Control Equipment
Two factors drove increased demand for power equipment in 2019:
- Extreme summer heat – Sweltering temperatures across many regions pushed contractors to rent temporary air conditioning units to maintain safe working conditions on jobsites.
- California wildfires – Power outages caused by wildfires created demand for generators as backup power sources for active construction sites in affected areas.
Cannon observes that customers increasingly requested power sector items such as generators, which traditionally were not part of the typical construction equipment rental mix. Temporary air conditioning emerged as a significant growth category, reflecting changing climate patterns and heightened awareness of worker safety in extreme temperatures.
Technology Reshaping the Equipment Rental Landscape
Technology has fundamentally changed how equipment rental works, from the way contractors find and book equipment to how they manage it on the jobsite. These advancements are making rental more efficient, cost-effective, and data-driven. For a broader perspective on where these trends are heading, read our piece on Equipment Rental Industry Outlook Resilience Growth and Strategic.
Telematics: A Game Changer for Fleet Management
Cannon describes telematics as a real game changer for the rental industry. This technology combines GPS tracking with analytics to provide contractors with unprecedented visibility into their rented equipment:
- Location tracking – Helps prevent loss and theft by showing exactly where every piece of equipment is located on the jobsite or during transport.
- Utilization monitoring – Feeds back information on how frequently and intensively equipment is being used, enabling better resource allocation.
- Inactivity alerts – Reminds contractors when a machine has not been used for a period, allowing them to return unneeded equipment and stop rental charges instead of paying for idle machinery.
- Maintenance scheduling – Provides data that helps predict maintenance needs before breakdowns occur, reducing downtime on active projects.
The Digital Shift in Equipment Procurement
One of the most dramatic changes in the rental industry has been the move toward online booking. Cannon reports that approximately 90 percent of BigRentz rental items can now be self-served online by customers. The shift in customer behavior has been rapid and substantial:
- Two to three years ago, only about 10 percent of customers booked equipment online.
- Today, 40 to 50 percent of customers book entirely online without any human interaction.
- The remaining customers use a hybrid approach, researching online and completing bookings through phone or in-person contact.
This digital transition saves time for contractors and reduces overhead for rental providers, creating a more efficient marketplace overall. Equipment is also becoming safer and better manufactured, with improved fuel efficiency that benefits both contractors operating budgets and the environment.
Software Integration as the Next Frontier
Looking ahead, Cannon emphasizes that BigRentz is heavily focused on integration with the software tools contractors already use on their jobsites. Many contractors work across multiple locations and rely on various software platforms for project management, accounting, and operations. Making rental equipment procurement work seamlessly within these existing workflows is a priority for eliminating duplicate efforts and communication gaps.
This integration focus points toward a future where equipment rental becomes an embedded part of the construction technology stack, rather than a separate process requiring manual coordination. Contractors who adopt integrated rental platforms early will likely benefit from smoother operations and better data visibility across their projects.
Summary of Key Takeaways for Building Contractors
The 2019 equipment rental landscape revealed several important lessons that remain relevant for building contractors planning their equipment strategies:
- The long-term trend toward renting rather than buying equipment continues to strengthen, driven by clear economic advantages.
- Weather patterns are creating new seasonal dynamics that require flexible rental planning rather than rigid annual schedules.
- Scissor lifts dominate rental volume, while large booms and cranes drive rental revenue a distinction that affects pricing strategies.
- Power equipment and climate control rentals are growing categories worth watching as climate conditions evolve.
- Telematics technology provides powerful tools for managing equipment utilization and controlling rental costs.
- The shift to online booking is accelerating rapidly, and contractors who embrace digital procurement will gain efficiency advantages.
- Software integration between rental platforms and existing contractor tools represents the next major opportunity for operational improvement.
Cannon expects construction equipment rental growth to continue through 2020, though possibly at a slower pace than the strong growth experienced in 2018 and 2019. The fundamentals driving rental adoption remain solid, and technology continues to open new possibilities for how contractors access and manage the equipment they need to build effectively.