State of the construction equipment economy report at CONEXPO

For decades, the gold standard for construction success was simple: build a massive fleet, own your iron, and control your own destiny. But according to the latest findings from EquipmentWatch and Equipment World, that could be changing.  

Jordanne Waldschmidt, Chief Editor of Equipment World, and Grant Nolen from Fusable, presented their 2025 report, State of the Construction Equipment Economy, at CONEXPO.

Among their findings on the current construction economy was that isn’t about how much you own—it’s about how fast you can move. Here is a breakdown of their report.

From reactive to strategic  

Rental used to be the “Plan B”—a move when a machine broke down or a project hit a snag. Today, it’s a core strategic pillar.

• The Data: 72% of contractors rented equipment in the last 12 months.
• The Shift: Rental is no longer just for emergencies; it’s for operational continuity. With 25% of contractors reporting unexpected demand (the highest in three years), rental provides the speed and access needed to keep tight schedules on track without the long-term debt of a purchase.
• 68% of respondents cited immediate need as their primary driver. In a world of unpredictable project starts, contractors are choosing “just-in-time” equipment over “just-in-case” ownership.

Buying with precision

While ownership still makes up about 63% of the average fleet, that number is ticking downward. Contractors are becoming “capital efficient,” focusing on capability rather than sheer volume.

• There has been a 5% increase in used equipment purchases. Contractors want the machine’s power without the “new machine” price tag.
• The “Decision” Model: One-third of contractors now “flip-flop” between renting and buying based on the specific project. Ownership is no longer the default; it is a calculated decision.
• Optimization: Many are shrinking their owned fleets to reduce risk, preferring to have fewer machines with higher utilization rates.

Data-driven right-sizing

Contractors are holding onto universal assets longer to preserve options but are aggressively shedding underutilized or aging machines that no longer justify their footprint.

Whether through auctions for liquidity or trades for dealer friction reduction, selling has become an active management tool rather than an act of last resort.

The 2026 outlook: a mixed bag

The construction backlog sits at a healthy 8.2 months, but the “steady but cautious” label applies here more than anywhere.

The Headwinds: Contractors are currently battling a “perfect storm” of 60% project delays, labor shortages, rising wages, and tariff-driven material costs. This is exactly why they are hesitant to overextend their capital on new iron.

A “just enough, just in time” strategy

As we move through 2026, the most successful firms are those treating equipment as a strategic lever rather than a fixed asset.

• Leverage Tax Incentives: Use the 100% bonus depreciation and Section 179 expansion to accelerate investments where it makes sense (mostly for medium-sized firms).
• Buy the Staples, Rent the Variables: Own the machines you use every day; rent the specialized “one-offs” or the machines needed for volatile timelines.
• Data Over Instinct: Use tools like rental rate benchmarks and operating cost data to ensure you aren’t gambling with your margins.

2026 is defined by realism, not retreat. The goal is to be prepared without being overbuilt. By blending owned assets with strategic rentals and leases, contractors can protect their margins and remain agile enough to pivot when the next mega-project calls.

2025 REPORT HIGHLIGHTS FROM EQUIPMENT WATCH:

Rental Activity Remains Strong and Steady 

• 72% of contractors rented equipment in the past 12 months—on par with 2024. 
• Rental continues to serve as a strategic lever for meeting demand, managing risk, and controlling costs. 

Used Equipment Purchases Are On the Rise 

• 27% plan to purchase more used equipment this year, up 5 points from 2024. 
• Cost savings and immediate availability are driving this trend amid high interest rates. 

Ownership No Longer Means Exclusivity

• 71% of equipment owners also rented this year. 
• Contractors are blending strategies to stay agile without bloating their balance sheets. 

Rental Intentions Show Stable Demand 

• 54% say they will rent as much or more over the next 12 months. 
• Key drivers include short-term needs, availability, and cost predictability. 

“Just Enough, Just in Time” Fleet Mentality 

• 52% said their fleet strategy has changed in the last year—mostly toward more flexible ownership models.
• Seasonal rentals and telematics-driven right-sizing are replacing the “own everything” mindset. 

Are you interested in getting more equipment market insight or exploring buying and selling equipment? Get in touch today.

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