GROWTH IN THE RENTAL SECTOR SLOWS DOWN IN 2012; GREAT MARKET SPECIFIC DIFFERENCES
In Europe, there is still a great deal of uncertainty in the economy. In both industrial and new construction activities, investment decisions are being postponed to a later date. This is also slowing down the demand for equipment rental in most of Cramo’s markets.
Despite uncertainty, the demand for equipment rental is growing in Norway, Estonia and Russia.
The growth predictions for construction activities and equipment rental have mainly been adjusted downwards during 2012. However, the demand situation in Cramo’s main market areas can still be described as satisfactory.
Euroconstruct, the construction market analysts, in their June market forecast, predict about a three per cent decline for construction activity in Finland and Sweden for 2012. For construction in Norway, Denmark and Germany, Euroconstruct forecasts a growth ranging between two and four per cent. The growth prediction for the Baltic countries is over ten per cent and for Russia approximately five per cent.
The equipment rental market normally grows faster than the underlying construction market. Even in periods of uncertainty, fleet renting is an interesting alternative for construction companies when allocating investment funds.