A significant number of contractors and other end users around the world plan to increase their use of rental services in the coming five years reveals International Rental News' first ever ‘Attitudes to Rental' survey.
The proportion of end users in Western Europe and North America expecting to significantly increase their rental spending is modest - 12% and 15% respectively - but this increases to 31% and 41% when you include those who say they will "slightly increase" their rental use.
Between 20 and 25% of rental customers in South Asia (including India), South America and Australia/New Zealand will make a significant increase. Brazilian end users are the most likely worldwide to rent more, with 26% saying that they would significantly increase rental spending.
More than 850 companies worldwide completed the online survey during February, including a remarkable response from Brazilian companies, with more than 300 taking part.
The full survey results will be published over two issues of IRN magazine, with part one in the March-April issue and part two in May-June.
The survey reveals that economic uncertainty is playing a major role in determining rental policy. When asked what factors were leading them to rent more, the most important reason in both North America and Western Europe was that it ‘gives flexibility in uncertain economic times'.
The issue of capital constraints - with banks tightening up on lending - was not considered an important factor leading companies towards rental in either North America or western Europe. In fact in both regions it was rated the least important factor of six, below benefits such as switching capital expenditure away from equipment to the core business and reduced management time on owning equipment.
Asked explicitly if the financial crisis had made it much more likely for them to rent, just 11% of Western European users and a more positive 23% of North Americans said it had. A further 28% Western Europeans and 27% of North American's said they were "a little more likely" to rent as a result.
The wide ranging survey included questions on why rental companies rent, what the most important service factors are, and whether any changes in attitude to rental were permanent or temporary.
IRN would like to thank the following organisations for their help in distributing the surveys: Caterpillar and its dealers in the Americas, Loxam (France), A-Plant (UK), Speedy (UK), Ramirent (Finland), Kennards Hire (Australia), Solaris (Brazil), Mills Rental (Brazil), SKC Rental (Peru), DLR (French rental association) and HIANZ (New Zealand rental association).
We also thank our colleagues at International Construction, Construction Europe and Construction Latin America magazines for publicising the survey.