Construction and industrial equipment rental and general tool rental in Canada is expected to outpace previous forecasts, according to the latest figures from the American Rental Association (ARA).
In Canada, the combined CIE and general tool rental industry is expected to grow 5 per cent 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 per cent in 2027 before dipping slightly to 5.4 per cent 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.
Canadian rental growth is outpacing the United States. In its latest economic forecast, the ARA indicates American CIE and general tool rental industry is projected to increase by 3.6 per cent this year, totaling $83.5 billion. This is an increase from last quarter’s projection of a 2.8 per cent 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 in the United States, growth in CIE and general tool rental revenue is projected to grow at a pace of 3.8 per cent in 2027 and 4.4 per cent in 2028.
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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 moderate due to 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,” Hazelton said. “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.”
Event rental
The event rental segment is outpacing equipment in both Canada and the United States.
The Canadian event rental industry is now expected to grow 6.3 per cent in 2026, totaling $280 million. Beyond 2026, growth in Canadian event rental revenue is projected at 7.2 per cent and 5.6 per cent in 2027 and 2028 respectively.
In the United States, event rental is forecast to grow 8 per cent in 2026 to total $6.1 billion — an increase from last quarter’s projection of 5.8 per cent growth to total $5.9 billion this year.
Beyond 2026, growth in American event rental revenue is projected to soften to 5.5 per cent and 4.6 per cent in 2027 and 2028 respectively.
“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,” said Bryan Bolt, ARA Senior Director of Tenting Solutions.
