Carlisle TyrFil: 2025 Construction and Rental Equipment Market Outlook

As we move into the new 2025 economic year ahead, it’s time once again to take a calculated look at the construction and rental equipment market outlook—and assess what opportunities, challenges and other dynamics potentially lie ahead for the tire, vehicle and related technology sectors. Market trends are intimately tied to the advancement of the industrial and commercial tire space—as construction vehicles (both operator-owned and leased) play a fundamental role in operations efficiency and budget management “on the job.”

Construction space outlook

Looking back at 2024, according to Deloitte Research Center for Energy & Industrials, construction and development was “defined by strong fundamentals, marked by a 10% increase in nominal value added and a 12% increase in gross output.” This market expansion was also accompanied, however, by several challenges. The construction industry battled high interest rates, inflation, and a volatile lending market. But a presumed decrease in interest rates in the coming year offers greater incentives and stimulation for the construction and development marketplace, and according to the Deloitte analysts, the domestic construction sector has “reason to be optimistic.”

The end-of-year Deloitte forecast report relayed that “improving economic conditions are likely to influence construction demand across various segments. Declining mortgage rates could boost demand and residential construction activity. Government investments through the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act may continue to drive growth in segments such as manufacturing and energy.” Analysts added that “overall, the U.S. construction industry is likely to record moderate growth in the medium term with slowing inflation and a supportive monetary policy.”

But in light of these anticipated positive changes, there are a host of new factors destined to play a heavy role in the future dynamics affecting the construction space. They include, but are not limited to, the following:

• Labor issues (there is a continued shortage of a properly trained workforce to accommodate sector growth)
• Expansion of eco-friendly building requirements and mandates (this will continue to push construction operators to modify and advance protocols and employ new practices on the job—many related to transportation equipment management)
• Increasing use of AI-adapted and generated technology (that will influence both construction designs and onsite project implementation)
• Financial implications (there is a lack of certainty about the exact impact that materials importation guidelines and fiscal fluctuations may have—across markets)

Construction industry operator strategies must remain fluent and prepared to maximize both optimal technology use and protocols to ensure solvency and to achieve measured and consistent success.

Rental equipment market forecast

Similarly, the Off-the-Road (OTR) rental equipment marketplace faces similar positive prospects for continued expansion and evolution. According to Verified Market Reports, research indicates that “the equipment rental market is poised for continued growth and innovation, driven by evolving customer demands, technological advancements, and sustainable initiatives.” (Source: Verified Market Reports). There are a variety of reasons why contractors and construction operators will tap the OTR rental equipment market and opt for the leasing vs. purchasing of core equipment.  For one the rental market continues to expand. There is an increasingly wide availability of products across multiple markets—certainly for core equipment choices such as earthmovers, bulldozers, excavators, etc. It’s also simply more financially advantageous in many cases for operators to rent rather than buy especially costly equipment—including gear and vehicles that are highly specialized and that may carry an exorbitant price tag.

The same applies for utility equipment and applications that may require infrequent or one-time use. According to the Verified Market Reports industry diagnosis, there continues to be a greater need for special use equipment that may be needed only in specific instances. They note that “businesses are increasingly opting for specialized equipment rental to meet niche requirements and address specific project challenges.” The report adds that “from specialized tools for industrial maintenance to advanced machinery for renewable energy projects, the demand for specialized rental equipment is on the rise.” Because this equipment may be used only intermittently and for limited portions of a construction or renovation project, the rental option offers myriad fiscal advantages.

And as noted above, in relation to how the greater construction space is evolving, the continual expansion of policy requirements designed to ensure greater sustainability makes the mandate for specific equipment stronger than ever before. Many rental companies offer vehicles and other gear that are specifically suited to helping better manage environmental considerations—either using enhanced energy efficiency, improved fuel economy, or other eco-friendly attributes that make sustainable operations more accessible and affordable. (Source: Verified Market Reports)

Role of advanced tire technology on industry transportation

As the industry navigates both the opportunities and challenges of the New Year, trust in technology applications and advanced solutions will be paramount to how smoothly the construction worksite flows. Informed selections regarding premium vehicle technology, the latest gear, tools and formulations, and the most sustainable, practical tire solutions to support the essential role that transportation equipment plays on the construction jobsite will be critical.

Carlisle TyrFil, the market’s leading eco-friendly alternative to solid tires, offers a game changing option for construction project managers looking to maintain strong bottom-line solvency and production efficiency. TyrFil™ renders OTR vehicle tires flatproofed—eliminating punctures incurred from operating over typical worksite debris such as nails, glass, sharp rocks, rebar and more. TyrFil (also known as “foam fill”) technology pumps a curable polyurethane fill into a pneumatic tire replacing all the air—and offers operators a more sustainable formula that lowers carbon emissions. Additionally, the use of tire fill reduces the cross-axle cabin vibration that is typical with solid aperture tire use—making the driving experience far less bumpy and decreasing the “jolting” sensation that can impact driver-related work crews who spend long shifts behind the wheel. The resulting condition from excessive jarring rides, called “Whole Body Vibration” (WBV), may cause drivers to suffer from muscular/skeletal damage and puts operators at risk for worker injury, incapacitation, and liability. TyrFil’s “No More Solid Shock” promise helps ensure that drivers working in the construction space remain safer and healthier on the job. By opting for foam fill technology over traditional solids, construction firms are also able to help limit the amount of rubber tire material going into our national landfills.

For more information about the ways that tire and foam fill technology can help developers working in both the residential and commercial fields augment their construction transportation efficiency in 2025 by keeping OTR vehicles tires immune to costly flats and punctures, visit TyrFil Flatproofing at www.CarlisleTyrFil.com.