Eurozone economies are still expected to resume growth in 2014, but growth will be modest. The prolonged Ukrainian crisis and the spreading of its impacts from Russia to Europe has increased uncertainty about economic development.
Growth in the eurozone is expected to strengthen in 2015–2016 but more slowly than what was estimated before. Growth has been slowed down by the strong euro; however, during the third quarter, the euro’s external value started to weaken. In countries outside the eurozone, such as Sweden, the economy is expected to grow more quickly.
In Europe, market-specific differences in the development of construction and the demand for rental services are considerable. However, in its June forecast Euroconstruct estimated that construction activity will pick up in all of Cramo’s operating countries in the next few years.
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 to increase in all of Cramo’s main markets, except Finland, in 2014.