Economic development is expected to gradually pick up in Europe. According to European Central Bank’s (ECB) December estimate, short-term indicators suggest that GDP growth will continue to be moderate. ECB expects favourable financing conditions and low mortgage interest rates, combined with the increase in households’ disposable income, to boost demand for housing in the near future. The need for new construction, renovation and temporary facilities also increases due to intensely increasing immigration.
In Cramo countries, the construction market outlook for 2016 is positive. In their reports published in December, the construction market analysts Euroconstruct and Forecon estimated that in 2016, construction would increase in all of Cramo’s operating countries with the exception of Russia and Slovakia. The Confederation of Finnish Construction Industries RT also estimated that construction will take an upward turn in Finland in 2016.
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 volume, the demand for equipment rental services is affected by industrial investments and the increase in the rental penetration rate. Tightening legislation and the requirement to improve the efficiency and quality of construction increase the need for different types of rental-related services.
The demand for modular space is boosted by the increase in the need for and popularity of modifiable and easily implementable space solutions. Demand is also
increased by migration flows within countries, demographical changes as well as by completely new applications, such as asylum seeker reception centres.
According to its November forecast, the European Rental Association (ERA) expects the usage of equipment rental services to increase in all of Cramo’s main markets in 2016. According to Cramo’s estimates, demand for modular space has increased in the Nordic countries By approximately 6% per year during the past few years. Cramo estimates that in the Baltic countries and Germany,
market growth is somewhat stronger.