US rental stocks rise on Trump win

Stock prices at the five largest publicly traded equipment rental businesses in the US rose significantly following Donald Trump’s election victory on 5 November. 

Big rises immediately after the election were seen at the following businesses, with London-listed Ashtead Group included because its largest business Sunbelt Rentals is in the US:

• United Rentals: +10%
• H&E Equipment: +11%
• Ashtead (Sunbelt): +8.5%
• Herc Rentals: +13%
• WillScot: +10%

US-based manufacturer stocks linked to the equipment rental sector also rose:

• Terex Corp (Terex AWP): +10%
• Oshkosh Corp (JLG Industries): +9.5%
• Caterpillar: +8.5%

It is far from clear what the actual impact of the Trump administration will have on construction and the wider economy when it takes power.

Our colleagues at Construction Briefing have written an analysis on this which can be found here. It covers areas such as tariffs and labour and reports on the reaction of industry bodies such as the AED (for equipment disrtributors), ABC (one of the two major contractors’ associations in the US) and NUCA (the utility contractors’ body).

The American Rental Association (ARA) has not publicly commented on the election result. The organisation, which represents more than 12,000 rental companies, the vast majority of which are in the US, created a dedicated website providing its members with advice on issues to consider before voting. The website can be found here.