Eurozone economies are expected to resume growth in 2014. Growth is expected particularly in the second half of the year. The Ukrainian crisis has brought uncertainty to growth expectations. However, its effects have been limited to Russia and Ukraine. If the crisis expands materially to continental Ukraine or the EU implements severe economic sanctions, the crisis may have a stronger effect on construction and the demand for rental services in some of Cramo’s countries of operation.
For the time being the general expectation of economic revival in Europe in 2014 remains unchanged.
However, market-specific differences in construction and the demand for rental services are considerable. In its November forecast, Euroconstruct estimated that construction would increase in the Nordic countries, Germany, Poland and Lithuania in 2014. In Norway, positive signs regarding residential construction were received in April, indicating that apartment prices had begun to rise again during the winter.
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 and may be strong. 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 in 2014.