March 2021 Rental Industry Report: Equipment Rental Market Trends and the Path to Recovery

The March 2021 issue of Rental magazine delivered a defining moment for the equipment industry with its annual State of the Industry report, providing a comprehensive look at how the rental sector was navigating the post-pandemic landscape. For building contractors and rental professionals alike, the issue offered data-driven insights into recovery trajectories, shifting customer expectations, and the operational strategies that would define success in the months ahead. Understanding these trends is essential for contractors who rely on rental equipment to complete projects efficiently. As the industry adapts to new economic realities, staying informed about market conditions can make the difference between seizing opportunities and falling behind. For a deeper look at how industry visibility shapes rental business growth, read Equipment Rental Profiles Building a Stronger Rental Business.

The 2021 State of the Rental Industry: Recovery and Resilience

The centerpiece of the March 2021 issue was the annual State of the Rental Industry report, aptly subtitled “Rental Strikes Back.” After a year that tested every facet of the construction and rental ecosystem, the report delivered a message of cautious optimism backed by concrete data. The American Rental Association (ARA), which released its updated forecast in February 2021, projected that the equipment rental industry would exceed USD 50.2 billion in revenue, representing growth of more than 1.5 percent over the previous year. This marked a significant upward revision from the ARA’s November 2020 forecast, which had predicted more modest growth of just 0.3 percent to USD 48.9 billion.

Key Economic Indicators Driving the Forecast

Several data points underpinned the improved outlook. Construction and industrial rental revenue had taken a significant hit in 2020, but the ARA forecast predicted only a 1 percent drop in this segment for 2021, indicating that the worst was behind the industry. The general tool segment proved especially resilient, weathering the pandemic better than most and expected to surpass its 2019 revenue peak by 2022. According to the ARA, general tool rental revenue was projected to grow by 4 percent in 2021.

Equipment investment, which had declined considerably in 2020, was forecast to rebound by 17.4 percent in 2021, signaling renewed confidence among rental companies in the long-term health of their fleets. Scott Hazelton, managing director of IHS Markit, the international forecasting firm that compiles data for the ARA Rentalytics service, noted that the new forecast was more positive because economic data from the end of 2020 had come in stronger than expected.

Rental Penetration Trends and Market Volatility

One of the most significant trends identified in the report was the continued increase in rental penetration. Josh Nickell, vice president of the equipment segment for the ARA, explained that market volatility pushes more contractors to trust rental companies with a greater percentage of their fleet needs. The long-term trend of steadily increasing rental penetration was expected to accelerate as a result of the economic uncertainty created by the pandemic. For building contractors, this means that access to well-maintained, modern equipment through rental channels will only become more important in the years ahead. To understand how rental industry forecasts specifically affect building contractors, explore Ara Rental Industry Forecast 2022 What Equipment Rental Growth Means for Building Contractors.

Technology Acceleration and Digital Transformation in Rental

The March 2021 issue highlighted a silver lining of the pandemic: the rapid acceleration of technology adoption across the rental industry. What might have been a 10-year digital roadmap became a 2020 priority for many rental businesses, and those that embraced the change were positioned to reap long-term dividends. According to Nickell, the pandemic drove an increase in demand for contactless rentals and a surge in digital adoption that will pay ongoing benefits for the companies that implemented these systems.

Innovations Reshaping Rental Operations

Several technology innovations gained traction during this period:

• Contactless rental transactions allowing customers to reserve, pick up, and return equipment with minimal physical interaction
• Virtual tradeshows and product demonstrations replacing in-person events as a primary means of equipment evaluation
• Video product walkarounds enabling remote inspection of equipment condition and features
• Digital fleet management platforms providing real-time visibility into equipment availability, maintenance status, and location
• Online booking and payment systems streamlining the rental process from quote to invoice

These digital tools did not simply serve as temporary fixes during lockdowns. They fundamentally changed how rental companies interact with customers and manage their fleets, with many of these practices continuing well after restrictions were lifted. The adoption of rental software has become a cornerstone of modern equipment operations, and insights from industry events continue to shape how rental technology evolves. Learn more about the latest developments at Point of Rental Conference 2022 Rental Software Insights from the Return of In-Person Industry Events.

Safety Innovations and Equipment Enhancements

Technology adoption also extended to safety innovations. The March issue covered new PPE developments, enhanced equipment safety features, and improved training protocols that were being implemented across the rental industry. These innovations were driven by the need to protect workers and customers alike, and they reflected a broader industry commitment to safety excellence that would continue to shape equipment design and rental practices.

Women in Rental: Building a More Inclusive Industry

A notable feature of the March 2021 issue was the debut of a new “Women in Rental” focus, recognizing the essential contributions of women to the equipment rental industry and addressing the need for greater diversity and inclusion. This feature highlighted the work of female professionals across rental operations, management, and leadership, and explored the challenges and opportunities they face in a traditionally male-dominated field.

Addressing the Gender Gap in Construction and Rental

The data on gender representation in the construction and rental industries has long been sobering. The number of female CEOs in science and technology industries, including construction, falls far below that of their male counterparts. Pay levels continue to reflect ongoing disparity between genders. The “Women in Rental” feature in the March 2021 issue aimed to spotlight these issues while celebrating the achievements of women who are breaking barriers and driving positive change.

Key Takeaways for Rental Businesses

For rental companies and contractors looking to build more inclusive workplaces, the March issue offered several actionable insights:

• Mentorship programs that connect experienced female professionals with newcomers to the industry
• Recruitment strategies targeting a broader and more diverse candidate pool
• Workplace policies that support work-life balance and equal opportunity advancement
• Visibility initiatives that showcase the contributions of women in rental at industry events and in industry publications

Diversity is not just a matter of fairness; it is a business imperative that brings fresh perspectives, improves decision-making, and strengthens the industry as a whole. Rental businesses that embrace inclusion are better positioned to attract top talent and serve a diverse customer base.

Equipment Selection and Rental Marketing Strategies

The March 2021 issue also delivered practical guidance for rental professionals in two critical areas: equipment selection, particularly telehandlers, and digital marketing through search engine optimization. These topics reflected the industry’s dual focus on operational excellence and customer acquisition in a competitive marketplace.

Choosing the Right Telehandler for Jobsite Needs

Telehandlers remain one of the most versatile pieces of equipment on any construction site, and the March issue dedicated substantial coverage to helping rental customers select the right machine for their specific applications. Key considerations included:

• Lift capacity and height requirements matching machine specifications to typical job demands
• Attachment compatibility ensuring the telehandler can accommodate forks, buckets, winches, and other accessories
• Terrain and site conditions determining whether a standard, all-wheel steer, or rotating telehandler is appropriate
• Operator training and safety features including load management systems, stability controls, and visibility enhancements

Proper telehandler selection directly impacts jobsite productivity and safety. Rental companies that invest time in understanding their customers’ needs and recommending the right equipment build stronger, more trusting relationships. The issue’s telehandler coverage also included tips for safe material handling, emphasizing that machine design, capacity planning, operator training, and regular maintenance all contribute to safe telehandler operation by rental customers.

Rental Marketing and Google Ranking Strategies

The final installment of the magazine’s guide to rental marketing and ranking on Google provided rental businesses with practical SEO strategies for increasing online visibility. In an increasingly digital marketplace, the ability to appear prominently in search results can make a significant difference in customer acquisition. The guide covered:

• Local SEO best practices for rental companies serving specific geographic areas
• Content marketing strategies that position rental businesses as industry authorities
• Website optimization techniques improving load times, mobile responsiveness, and user experience
• Customer review management and its impact on search rankings and reputation

For rental companies of all sizes, a strong digital presence is no longer optional. The March 2021 issue’s marketing guide provided a roadmap for rental businesses seeking to compete effectively in the online space, emphasizing that the fundamentals of good SEO apply whether a company rents construction equipment, general tools, or specialty machinery.

Industry Outlook and the Baird/RER Survey Results

Beyond the ARA forecast, the March 2021 issue also reported on the Baird/RER equipment rental survey, which provided additional perspective on the industry’s trajectory. According to the survey, average rental revenue declined 1.5 percent year-over-year in the fourth quarter of 2020, a modest improvement compared to the third quarter. Survey respondents matched the ARA’s optimism for 2021, forecasting an overall 4.9 percent increase compared to 2020.

Survey Respondent Sentiment

Comments from survey participants reflected a mix of cautious optimism and wait-and-see attitudes. Many suggested that the recovery would be slow, with projections of meaningful improvement starting around the summer of 2021. Some respondents expressed concern about the pace of jobsite activity amid varying lockdown restrictions across states. However, a notable 52 percent of respondents reported that fourth quarter activity had exceeded their initial expectations, a positive sign for the industry’s resilience.

Rental Rates and Revenue Projections

The survey also offered encouraging news on rental rates. After experiencing an average 2 percent drop over the previous three quarters, respondents expected a 1.4 percent rate increase in 2021. While modest, this reversal was a meaningful indicator that pricing power was returning to the rental market. United Rentals CEO Matthew Flannery noted on a January investor call that strength in the used equipment market was a positive indicator for future equipment demand.

“We look at the strength of the used equipment market as a key indicator for the rental industry. And when the retail market is favorable, it tells us the contractors are projecting needs for that fleet,” Flannery said. He also pointed to encouraging signs across various industries and verticals, including the overall rental industry showing great discipline on the supply side in 2020.

ARA Economic Analysis and Government Support

John McClelland, Ph.D., ARA vice president for government affairs and chief economist, tied the improved outlook to government stimulus programs and the rollout of vaccines. “With the government stimulus programs and the rollout of the vaccines, people are beginning to have more confidence. The equipment and event rental industry often recovers from adversity more quickly than the industries it serves, and it looks like this is happening again,” McClelland said.

For construction professionals who want to stay informed about the latest industry data and contribute to future research, participating in industry surveys and reports is a valuable way to ensure that the rental sector continues to reflect the real experiences of contractors and equipment users. Find out how you can get involved at How Construction Professionals Can Participate in the Equipment Rental State of the Industry Report.

Conclusion: A Quiet Fortitude for the Road Ahead

The March 2021 issue of Rental magazine captured a moment of transition for the equipment rental industry. The data told a story of cautious recovery, with the ARA forecasting growth, the general tool segment proving its resilience, and equipment investment poised for a strong rebound. But beyond the numbers, the issue conveyed something equally important: the quiet fortitude of an industry that had weathered an unprecedented storm and emerged with new capabilities, new strategies, and a renewed sense of purpose.

From the accelerated adoption of digital technologies to the recognition that diversity strengthens the industry, the themes explored in the March 2021 issue continue to resonate. The rental industry may not have roared back with vengeance in 2021, but it struck back with determination, innovation, and a clear-eyed view of the road ahead. For contractors, rental professionals, and everyone who depends on equipment availability to keep projects moving, that resilience remains the industry’s greatest asset.