Why rental will lead the way in construction

If the past couple of years have taught us anything, it's that the construction industry is resilient.

After some turbulent times, last year was approached with a healthy dose of cautious optimism. And it was, as predicted, a bit underwhelming in terms of growth — but it was smooth sailing overall. Interest rates cooled the Canadian economy, and residential construction softened while infrastructure demand continued. Despite a changing landscape, contractors still faced everyday challenges like improving productivity, fuel costs, equipment utilization, accessing skilled labour, and keeping workers safe. Construction equipment rental continued to present an agile solution — allowing contractors to adapt project-specific needs without committing to long-term ownership.

As we make our way into 2025, I see a construction industry that will require adaptability and smart decision-making to meet evolving demands around sustainability, safety, labour, and operational efficiency. Rental equipment provides contractors with the agility to stay competitive while managing risk and protecting their bottom line. With more infrastructure spending projected, having reliable rental partners who can keep up with fleet optimization will be essential to success.

Rental as a sustainability strategy

We will see a shift toward better visibility and awareness around emissions and carbon footprints in 2025. Many larger construction companies are already working on ESG reporting and reducing emissions with electric equipment and alternative fuels. But how we can support smaller contractors in these endeavours is something to consider.

One of the biggest benefits of rental in 2025, in my view, will be its ability to offer newer, cleaner models that meet emissions standards right out of the gate. And with rental, contractors are sharing resources — which means the same machine can be utilized across countless projects. The result is fewer machines manufactured and ultimately disposed of at the end of their life cycle.

As fuel monitoring and emissions tracking become the norm, contractors who use rental will be better equipped to bid on projects with environmental requirements and lower their carbon footprint. As the industry adapts to new regulations and rising expectations around sustainability, rental provides an accessible way to integrate lower-emission, fuel-efficient equipment without the upfront costs of ownership. Small contractors can also use rental equipment to trial alternative fuel sources, exposing them to new technologies they may not have invested in otherwise. Many rental providers are starting to offer fuel usage monitoring and reporting — a benefit when bidding on infrastructure and government jobs that may require detailed reporting.

The industry in general is still wrapping its head around reporting regulations. From everything we hear, we can expect — and should prepare for — North American regulations and emissions standards to move toward tighter European standards and more rigorous enforcement.

Spreadsheets of data are out, insights to improve efficiency are in

Data is everywhere, but actionable insights are what contractors are really asking for. Technology continues to provide new opportunities to improve efficiency, make job sites safer, lower costs, and optimize operations. With the widespread use of telematics, we're starting to see some real progress in understanding how contractors want to access information and, more importantly, the value it can bring to their business.

But it's what we do with these insights that really matters. No one has time to sift through spreadsheets — they need quick answers to questions about equipment usage, costs, and fuel consumption. As rental providers, and as partners in our customers' business, we have a duty to provide that service.

We're also going to see more telematics being used to track and monitor operator behaviour and, as a result, provide more insights on safety. New machines are coming factory-loaded with a lot of enhanced safety features, but at the end of the day it's still up to contractors to ensure they're following the right procedures and best practices around training and equipment usage.

Specialty equipment — meeting project needs without ownership costs

With equipment costs rising, the rental market for specialized machinery is only going to grow stronger in 2025. I see government infrastructure projects, in particular, driving demand for trench safety, heavy earthmoving, and other niche equipment. Rental offers the flexibility to access these specialized machines without the significant capital costs of ownership.

I 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 need only occasionally. Rental brings the freedom to meet each project's unique requirements without the burden of long-term ownership.

With continued infrastructure investment throughout 2025, I don't expect this surge in specialty equipment demand to go anywhere. Government-driven projects, like LRT lines and other transit, along with hospitals, data centres, and energy facilities, provide stable demand for the construction industry. But a lot of the existing infrastructure, like roads and bridges and sewage and water main systems, are aging. There is a balance to strike between building new and resilient infrastructure and repairing and replacing existing systems.

The key to future growth is addressing our labour challenges

Labour shortages continue to impact our industry, and I don't see this changing anytime soon. A future-ready workforce needs investment in training and retention, and rental companies can support these efforts by providing contractors with hands-on access to the latest equipment and technology.

Companies should prioritize programs that encourage growth, safety, and skill-building. This approach not only helps fill talent gaps but also creates a workforce prepared for the demands of modern job sites. Invest in education and training programs and apprenticeships to attract workers. When it comes to retention, work on creating safe feedback loops, better communication, showing a career path, coaching, and giving people a space to grow. Building a future-ready workforce will be essential to supporting our industry.

Make outsourcing your fleet a top priority in 2025

The industry as a whole is operating with limited resources — everyone's looking for ways to manage budgets and drive better decision-making. Whether you're a rental provider or a contractor, let's face it — your bottom line is only getting tighter. The reality is that only lean and efficient operations will succeed in today's competitive environment.

I'm optimistic as we move into 2025. I'll be keeping an eye on how technology, sustainability, and labour challenges affect the construction and rental equipment industry. Focus on what you can control to keep your business strong. The choices we make in 2025 will set the tone for years to come, and rental gives contractors the tools to tackle both today's demands and tomorrow's unknowns.

Doug Dougherty is the CEO of Cooper Equipment Rentals. Since 2010 he has helped the company expand to over 1,000 employees and 68+ branches. Doug has also led the Cooper team through numerous acquisitions and DE&I initiatives making them one of the most progressive and fastest growing independent rental companies in Canada.