Equipment rental, leasing prices mixed in May

Equipment rental and leasing prices finished mixed in May as the market continued to feel inflationary pressure despite rental and leasing market growth.

Rental and leasing prices for construction, mining and forestry equipment rose 2% year over year in May, landing at an index value of 125.206, according to Equipment Finance News’ Equipment Pricing Indexes.  

Truck, trailer and RV rental and leasing prices dipped 0.3% YoY, finishing at an index value of 105.615.

Pricing Index for All Equipment Rental and Leasing

(Courtesy/U.S. Bureau of Labor Statistics)
Within the truck, trailer and RV rental and leasing index, values increased YoY despite mixed results sequentially. The truck, trailer and RV rental index was 122.705 in May, up 0.8% YoY, while the truck, trailer and RV leasing index was 123.168, up 2.8% YoY, according to EFN’s Pricing Index for Trucks, Truck Trailers and RV Rentals and Leasing.

Pricing Index for Trucks, Truck Trailers and RV Rentals and Leasing

(Courtesy/U.S. Bureau of Labor Statistics)
EFN developed the two pricing indexes for commercial equipment to serve as indicators for industry pricing trends using data from the Bureau of Labor Statistics. The indexes, which aggregate data back to Dec. 2008, are updated monthly.

Market outlook 

While demand for rental equipment remains bolstered by large investments, risks could still shake credit quality and, by extension pricing, this year, Donald Marleau, managing director and sector lead of corporate credit for metals and capital goods at S&P Global, said in a July 3 research note. 

“Megatrends and megaprojects present big opportunities and some risks, with an uneven credit impact across issuers that manufacture, service, distribute and rent the equipment at the core of the global industrial economy,” he wrote.  

“We are watching five evolving risks that could affect credit quality in the U.S. capital goods industry: labor, supply chain, interest rates, energy transition and technology.” 

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