NAICS Code 532 - Rental and Leasing Services

NAICS 532 - Rental and Leasing Services

NAICS 53 - Real Estate and Rental and Leasing
NAICS 11 - Sector 11--Agriculture, Forestry, Fishing and Hunting NAICS 21 - Sector 21--Mining NAICS 22 - Sector 22--Utilities NAICS 23 - Sector 23--Construction NAICS 31 - Sector 31-33--Manufacturing NAICS 42 - Sector 42--Wholesale Trade NAICS 44 - Sector 44-45--Retail Trade NAICS 48 - Sector 48-49--Transportation and Warehousing NAICS 51 - Sector 51--Information NAICS 52 - Sector 52--Finance and Insurance NAICS 53 - Sector 53--Real Estate and Rental and Leasing NAICS 54 - Sector 54--Professional, Scientific, and Technical Services NAICS 55 - Sector 55--Management of Companies and Enterprises NAICS 56 - Sector 56--Administrative and Support and Waste Management and Remediation Services NAICS 61 - Sector 61--Educational Services NAICS 62 - Sector 62--Health Care and Social Assistance NAICS 71 - Sector 71--Arts, Entertainment, and Recreation NAICS 72 - Sector 72--Accommodation and Food Services NAICS 81 - Sector 81--Other Services (except Public Administration) NAICS 92 - Sector 92--Public Administration
- NAICS 532 - Rental and Leasing Services
  NAICS 531 - Real Estate NAICS 532 - Rental and Leasing Services NAICS 533 - Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

Industries in the Rental and Leasing Services subsector include establishments that provide a wide array of tangible goods, such as automobiles, computers, consumer goods, and industrial machinery and equipment, to customers in return for a periodic rental or lease payment.

The subsector includes two main types of establishments: (1) those that are engaged in renting consumer goods and equipment and (2) those that are engaged in leasing machinery and equipment often used for business operations. The first type typically operates from a retail-like or store-front facility and maintains inventories of goods that are rented for short periods of time. The latter type typically does not operate from retail-like locations or maintain inventories, and offers longer term leases. These establishments work directly with clients to enable them to acquire the use of equipment on a lease basis, or they work with equipment vendors or dealers to support the marketing of equipment to their customers under lease arrangements. Equipment lessors generally structure lease contracts to meet the specialized needs of their clients and use their remarketing expertise to find other users for previously leased equipment. Establishments that provide operating and capital (i.e., finance) leases are included in this subsector.

Establishments primarily engaged in leasing in combination with providing loans are classified in Sector 52, Finance and Insurance. Establishments primarily engaged in leasing real property are classified in Subsector 531, Real Estate. Those establishments primarily engaged in renting or leasing equipment with operators are classified in various subsectors of NAICS depending on the nature of the services provided (e.g., Transportation, Construction, Agriculture). These activities are excluded from this subsector since the client is paying for the expertise and knowledge of the equipment operator, in addition to the rental of the equipment. In many cases, such as the rental of heavy construction equipment, the operator is essential to operate the equipment. Likewise, since the provision of crop harvesting services includes both the equipment and operator, it is included in the agriculture subsector. The rental or leasing of copyrighted works is classified in Sector 51, Information, and the rental or leasing of assets, such as patents, trademarks, and/or licensing agreements is classified in Subsector 533, Lessors of Nonfinancial Intangible Assets (except Copyrighted Works).

Industry trends:

The Rental and Leasing Services industry, classified under NAICS 532, is experiencing significant transformations influenced by technological advancements and evolving consumer preferences. One prominent trend is the increasing integration of digital platforms and mobile applications, facilitating easier access to rental services. Customers are now seeking seamless, on-demand experiences, which has driven the adoption of AI and machine learning to predict user needs and optimize inventory management.

Another qualitative trend is the growing emphasis on sustainability. Companies in this sector are investing in eco-friendly equipment and vehicles, as well as promoting circular economy practices where items are reused, refurbished, and recycled. This is not only responding to consumer demand for environmentally responsible choices but also complying with regulatory pressures.

Additionally, there is a shift towards shared economy models. Consumers and businesses are increasingly opting to rent rather than own assets to reduce costs and increase flexibility. This trend is particularly noticeable in urban areas with high-density populations and evolving lifestyle preferences.

In the near future, forecasts predict continued growth in the industry driven by technological innovation and a stronger focus on customer experience. The rise of autonomous vehicles and IoT will likely further streamline processes and enhance service delivery. Furthermore, economic uncertainties may promote the rental model over outright purchases, underpinning steady demand in the sector.