Photo Credits: Arlan Flores
Year after year you’re facing the same challenges – productivity, fuel costs, equipment, skilled labour and safety to name a few. Costs keep going up and you’ve got to do more with less – tighter budgets, shorter timelines and fewer workers.
You’re probably wondering…will 2025 hold a similar fate?
The short answer: Yes and no.
The good news is, high infrastructure spending is projected in 2025. The bad news? Equipment costs are unlikely to come down. But if the construction industry has proven one thing it’s that it’s resilient, adaptable and capable of smart decision-making. And equipment rental continues to be a key part of the solution – allowing you to adapt to project-specific needs without committing to long-term ownership.
Here are some predictions and key trends we see shaping the construction and equipment rental industry in 2025.
- Rental as a sustainability strategy
Many large construction companies are already focused on ESG reporting and emissions reductions through electric equipment and alternative fuels. But this isn’t realistic for everyone. Electric equipment costs are still higher than their diesel counterparts and access to charging infrastructure remains a challenge.
When electrical isn’t an option for you, renting equipment provides access to newer, well-maintained equipment models that meet emissions standards right out of the gate. It also means you’re sharing resources – the same machine is then utilized across countless projects. The result is fewer machines manufactured and ultimately disposed of at the end of their lifecycle.
Not only is rental a more accessible way to integrate lower-emission, fuel-efficient equipment into your fleet (without the upfront costs of ownership), you can also use rental equipment to trial alternative fuel sources like biodiesel (of course, check with your rental provider before putting any nonstandard fuel in rental equipment!). We’re also seeing more customers ask for fuel monitoring – a big benefit when bidding on infrastructure and government jobs that may require detailed reporting.
- Not just data but actionable insights
Data is everywhere, but it’s what we do with the data that really matters. We know you don’t have time to sift through spreadsheets – but you do need quick answers to questions about equipment usage, costs, and fuel consumption.
Telematics is bringing real value and insights into daily operations. Knowing where and when equipment is being used (or not being used) can help lower costs and ensure more accurate billing. Data can provide the information needed to keep you accountable and make better decisions – like returning unused equipment you’re paying to park in your yard.
Access to data to help improve safety on the jobsite is another big benefit. No matter how experienced an operator is, there’s always a chance that human error can sneak through. It’s not about policing your people; it’s a way to identify unsafe behaviours that can affect the performance, safety and bottom line of your company.
- The rise of specialty equipment
With high infrastructure spending predicted in 2025, the rental market for specialized machinery is only going to grow. Government-driven projects like LRT lines and other transit, along with hospitals, data centres and energy facilities will likely provide stable demand for the construction industry.
Rental offers the flexibility to access specialized equipment without the significant capital costs of ownership. We expect more contractors to realize the value of rental for project-specific demands, helping them deliver on their objectives without committing to equipment they might only occasionally use.
- Tackling labour shortages will be key to growth
The industry’s growing labour shortage was a big topic in 2024, and it’s unlikely to change anytime soon. No matter the size of your business, prioritizing programs that drive growth, safety, and skill-building will provide big benefits for the future. This approach not only helps fill talent gaps but also creates a workforce prepared for the demands of today’s job sites.
What role does rental have in supporting your labour challenges? Think of it this way – when you don’t have enough people OR the right equipment your project is going to be delayed. We may not be able to supply you with workers, but we can provide the right equipment exactly when and where you need it. And when you have an issue, you have access to a team of experts who can support you every step of the way.
- Outsourcing your fleet should be a top priority in 2025
Let’s face it – your bottom line is only getting tighter. With limited resources, everyone’s looking for ways to lower costs and drive better decision making in 2025. We’re optimistic. We’ll be keeping an eye on how technology, sustainability and labour challenges affect the construction and rental equipment industry. Our advice? Focus on what you can control to keep your business strong – this includes outsourcing your fleet where it makes sense. The choices you make this year will set the tone for your future. Be sure to lean on your rental provider to tackle both today’s demands and tomorrow’s unknowns.
As unrivaled experts in equipment rentals, Cooper has built a strong and trusted team of industry experts who aim to deliver the right equipment for the right job, every time. Contact us now to help support your next project.