European rental recovery sustained in final quarter 2010

The ERA/IRN RentalTracker survey for the fourth quarter of 2010 shows that the positive trends identified in the previous quarters are continuing and to some degree strengthening.

Almost 54% of all respondents report improving business conditions, up from 42.5% in the previous quarter, and an even greater number, 60%, reported higher business activity in the fourth quarter compared to the same period in 2009 (up from 55% for the third quarter).

Approximately 160 companies responded to the survey in the final two weeks of 2010 and the first week of 2011. The tracker is organised jointly by the European rental Association (ERA) and International rental News (IRN).

Time utilisation continued to improve for the fourth quarter in a row - 53% said utilisation was going up and only 14% reported worsening usage of their machines.

The proportion reporting increases in utilisation has actually reduced slightly since the second and third quarters of 2010, possibly reflecting the fact that de-fleeting made its biggest impact during the second half of 2010.

Regional trends in Europe are quite pronounced, with Nordic, German and French companies the most positive. Renters in the UK/Ireland, Benelux, Italy and Spain are significantly less so.

Almost 80% of French companies reported improving utilisation in the fourth quarter and nine out of every ten said fourth quarter revenues had grown compared to a year ago.

Multinationals, meanwhile, are reporting better conditions than their smaller competitors. They are the most likely to increase investment in 2011 and also the most likely to recruit more staff.

The full results of the Q4 tracker will be published in the January-February issue of IRN.

Our thanks once again to all the companies who took the time to complete the survey. For more on the survey, see www.khl.com/rentaltracker