MODERATE GROWTH EXPECTED IN THE RENTAL SECTOR IN 2012, BUT MARKET-SPECIFIC DIFFERENCES HAVE INCREASED
In Europe there is a high level of uncertainty in the economy. The uncertainty increased during the second quarter and investment decisions are held back. Nevertheless, in Norway, the Baltic countries and Russia, the demand for equipment rental is still growing.
On a general level, the growth predictions for construction activities and equipment rental have come in at a lower level during the spring. 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 now over ten per cent and in Russia the growth forecast stays at five per cent. The rental market is normally growing faster than the underlying construction market.
Cramo believes that in spite of the economic uncertainty, rental services will continue to be a growth industry. In periods of uncertainty, fleet renting is an interesting alternative for construction companies when allocating investment funds.