According to estimates, the national economies in Europe took, on average, a slight upward turn in 2014. In 2015, growth will still be modest in many countries, but there are significant country-specific differences in the estimated economic development. At the moment, the greatest uncertainties about economic development are related to the geopolitical situation and the risks related to the European financial markets and currency rate fluctuations. For Cramo, significant uncertainties relate to the Ukrainian crisis and the overall economic situation in Russia. The decline in oil price is expected to have a positive impact on economic development with the exception of Norway and Russia.
In Europe, market-specific differences are considerable also in the development of construction and the demand for rental services. In its November forecast, the construction market analyst Euroconstruct estimated that in 2015, construction would increase in all of Cramo’s operating countries with the exception of Estonia, Latvia and Russia.
In the long term, the equipment rental market is expected to grow faster than construction. Changes in demand usually follow those in construction with a delay. In addition to construction, the demand for equipment rental services is affected by industrial investments and the rental penetration rate.
The European Rental Association (ERA) is expecting equipment rental services to increase in all of Cramo’s main markets in 2015. The growth is expected to somewhat strengthen compared to 2014.