Infrastructure and equipment markets surveyed for the 2025 Annual Report & Forecast fell slightly short of expectations in 2024, mainly because one market lagged the others: equipment rental. The outlook for 2024 was “very good,” but the overall result for business in these markets was “good” in 2024.
Infrastructure funding appears to be driving positive outlooks for water and transportation, with both expecting “very good” business in 2025. Rental’s outlook improves, too, to “average.” Fleet managers are cautious going into 2025 as inflation continues to affect budgets for acquisitions and maintenance.
Contract volume trends in 2024 were mixed. The overall net (the percentage expecting increased volume minus the percent expecting decreased) was 16%, although that did not include 2024 data from the rental firms. By vocation, transportation beat expectations with a net of 23% (44% reporting increases minus 21% reporting decreases), and water fell short with a net of 29% (40% increasing minus 11% decreasing) compared to a forecast net of 52%.
Expectations for 2025 are robust, with an industry net of 35% (47% expecting increased revenue minus 12% expecting a decline). Rental has the highest expectations with a net of 52% (61% expecting an increase minus 9% expecting a decrease), followed by water with a net of 43% (47% minus 4%).
Inflation continues to concern all respondents with 72% expecting material pricing to increase in 2025, similar to expectations for 2024. The net for water infrastructure is the highest of the vocations at 84%, with the 87% expecting increases offset by only 3% who expect material prices to decrease. Only 8% of fleet managers expect material prices to decline in 2025, leaving a net of 63% when subtracted from the 70% who expect increases.
Corresponding increases in bid prices are expected by 67% of respondents. Again, water reports the highest net, at 76%, with only 4% expecting decreases against the 80% expecting to increase bid prices. The rental market has the lowest net, at 30% (42% expecting an increase minus 12% expecting a decrease).
What's Ahead in Other Vocations
Economic outlooks from sibling publications within Endeavor Business Media.
- A more challenging year for equipment rental firms, from Rental Equipment Register.
- 2025 promises renewed optimism in home building, from Pro Builder.
- Remodeling spending to tick up through mid-2025, from Pro Remodeler.
- Economic signals are improving for fluid power, from Power & Motion.
- Outlook for medium-duty and vocational trucking, from Fleet Owner.
- Construction and property development sector set to bounce back strongly in 2025, from Building Design & Construction.
- Surplus anticipated in 2025 global oil market, from Oil & Gas Journal.
- Plastics machinery outlook for 2025, from Plastics Machinery & Manufacturing.
The competitive landscape is “intensely” or “very” competitive for 61.4% of respondents, up from 57% in 2023. Water reports less competitive conditions, with 36% saying market is “intensely” or “very” competitive. Competition is greatest in the Mid-South, where 83% report it as “intensely” or “very” competitive.
Firm health is “very good” or “good” for 72.8% of respondents, down slightly from last year when it was 74.3% and from the pre-pandemic level of 80%. Firms in the water markets were less positive, with 54% reporting “very good” or “good” health.
Annual Report & Forecast Methodology
Construction Equipment partnered with magazines within its parent company, Endeavor Business Media, that cover infrastructure and equipment. Participants in the 2025 Annual Report & Forecast asked their subscriber bases about not only overall construction trends, but also trends specific to the sector in which they work. Each publication sent email invitations to its subscriber base, inviting participation in an online survey. Over 500 responded.
Respondents by market:
- Fleet managers, (Construction Equipment) 378
- Transportation, (Roads & Bridges) 127
- Water infrastructure, (WaterWorld) 146
- Equipment rental firms, (Rental Equipment Register) 67.
About the Author
Rod Sutton
Sutton has served as the editorial lead of Construction Equipment magazine and ConstructionEquipment.com since 2001.
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