During the summer and autumn, economic uncertainty in Europe has turned into a steadier development. Demand for equipment rental services developed satisfactorily in many of Cramo’s market areas during the third quarter. The economies in the Eurozone are estimated to take an upward turn in 2014.
There are still considerable differences among European markets related to construction activity and demand for rental services. In its June forecast, the construction market analyst Euroconstruct estimates 2013 construction activity to decline in Finland, Sweden, Poland, Estonia, the Czech Republic and Slovakia. According to Euroconstruct, growth can be expected this year in Norway, Denmark, Germany, Latvia, Lithuania and Russia. Forecasts for 2014 indicate a certain growth in most markets.
In the long run, the equipment rental market normally grows faster than the underlying construction market. Changes in demand usually follow those in construction with a certain delay and may be strong. In addition to construction activity, other factors affecting demand for equipment rental include industrial investments and the increase in penetration rate for rentals. According to a forecast published by European Rental Association (ERA) in October, equipment rental will increase in 2013 in Sweden, Norway and Germany, but will decrease in Finland, Denmark and Poland. In 2014, ERA predicts equipment rental to grow in all of Cramo’s main market areas.