Euro rental growth to resume next year says ERA

By Murray Pollok11 October 2013

Europe’s rental market will grow by an estimated 2% next year before increasing to 3% in 2015 according to forecasts from the European Rental Association (ERA).

The association’s just published European Equipment Rental Industry 2013 Report concludes that Europe’s rental market was flat in 2012, grew by just 0.7% this year and will resume moderate growth in 2014.

“The picture shows some countries with strong growth, like Norway, many countries with growth levels comparable to their national economies”, said the ERA, “while other countries, with young rental industries like Poland, as well as more mature rental industries like Spain or Italy, have had a very difficult year due to the economic environment.”

In 2012 the total European market for non-operated rentals (that is, equipment rented without drivers or operators) was €23 billion, which was a decrease of 0.1% on 2011.

On capital investment, the ERA said rental companies invested between 5% and 10% less this year than in 2012. Investment last year was also lower, by 3.3%, although that reduction followed a dramatic rise in 2011. Nevertheless, the figures show that rental companies in Europe remain cautious about the market.

As in the overall growth figures there are marked differences in investment levels between different countries. While spending across the region was down this year, said ERA, it also found that investment in the UK was up 20%. That is supported by the recent ERA/IRN RentalTracker survey, which found that UK rental businesses were among the most positive in Europe.

ERA’s 2013 report contains 75 pages of statistical information with expanded details per country. Each country contains 4 pages of detailed information in local currency in order to better measure the trends, independently from the variation of the currency exchange rate against the Euro.

A special feature of this year’s report is a focus on the UK, where ERA has for the first time broken down rental activity by product categories and by market segments, and including rental with operators.

The report, commissioned by ERA and researched by consultant IHS Global Insight, is available to ERA members for €300 and to prospective and non-members for €900. For copies please contact the European Rental Association by E-mail: era@erarental.org.

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