Almost 400 delegates attended ISDER's Rental Summit in Istanbul.

Almost 400 delegates attended ISDER's Rental Summit in Istanbul.

Turkey’s equipment rental business could triple by 2024 according to the country’s material handling and rental association, ISDER.

Speaking at the Rental Summit in Istanbul today (13 October), Özgür Pala, president of ISDER’s rental committee, told the almost 400 delegates that despite political uncertainties and a slowing economy, prospects were very bright, with rental market revenues forecast to increase from US$800 million now to US$2.4 billion by 2024.

ISDER’s estimate is based on conservative growth projections, with annual GDP growth of 2% and an assumption of no increases in rental prices.

Mr Pala told IRN that there was growth in all sectors of the rental market; "but in the past three years construction machine rental has seen hgher growth than the others, related to the construction activity in Turkey."

He added that equipment dealers and distributors were among those leading the push into rental, in some cases prompted by the manufacturers, "but if we want to step up to get economies of scale, then pure rental companies should be the major players."

The conference, organised by ISDER, took place just three days after the terrorist bombing in Ankara, with delegates and speakers paying tribute to the victims throughout the day.

Aerial platform rental is one of the growth areas in Turkey. Erhan Acar, general manager of Rent Rise, one of the largest access rental businesses in Turkey, speaking to IRN at the Summit, said that the elections, together with uncertainty over changes in currency valuations, were creating a kind of pause in the market, with some customers delaying projects and rental companies being cautious on fleet purchases.

However, he said the market was good and that utilisation rates on its 600 unit fleet were higher than last year, adding that “the potential is really huge.” He said two major projects that have just started – a third airport for Istanbul and a new petrochemical plant in Izmir – would be good for the rental business.

Rent Rise, which is a sister company to Haulotte’s Turkish dealer Acarlar Makine, continues to invest, recently opening its fifth depot in the country on the European side of Istanbul. It already has depots on the Asian side and in the cities of Ankara, Izmir and Bursa.

The conference also heard from senior representatives from the US and European rental markets. Per Lundqvist, vice president at Cramo, looked at European market trends, and Fred Bratman, senior vice president of investor relations at United Rentals, reported on the North American market.

Mr Bratman advised Turkish rental players to avoid adding too much fleet too quickly; “Too many rental players buy too much fleet the minute activity is strong…excess fleet can lower prices even when demand exists.”

He said United’s experience with its larger accounts showed that rental price was not the only concern, with customers looking for high levels of service, such as on-time delivery, quick repair times and accuracy in billing. He said rental companies needed to invest in providing service and to monitor actual performance; “It’s critical that you monitor and measure your activities.”

He also highlighted the attractions of providing a niche rental service, rather than a full range of equipment; “Investing in a niche can be risky – there has to be demand and the product can become obsolete, but there is a lot to be said for limiting the diversity of your fleet.”

Newsletter

Delivered directly to your inbox International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more!

Sign up for free

Newsletter

Delivered directly to your inbox International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more!

Go to newsletters