THE VOICE OF THE EQUIPMENT RENTAL INDUSTRY
Press release search engine
Back

Growth in the UK equipment rental sector expected to continue, says the European Rental Association

Growth in the UK equipment rental sector is expected to continue in 2016,
according to new research from the European Rental Association (ERA), the
industry body.
It estimates that turnover in the UK equipment rental sector will have grown
1.5% in 2015 to £5,679 million, and that growth will accelerate to 3.7% in 2016.
The figures come from the ERA Market Report 2015, which provides the most
comprehensive data available on the European equipment rental industry. It is
produced in cooperation with IHS, the source of information and insight. .
Among other findings, the report highlights the way that improved logistics and
planning have led to increases in time utilisation, a measure of efficiency that in
rental is the proportion of days for equipment in rent versus the total workable
days. In the UK, time utilisation is now at high levels overall.
The report also estimates that non-construction demand in the UK makes up 40%
of sales, with the remaining 60% coming from the construction sector. This
makes the UK’s non-construction share one of the highest in Europe.
Dick Buttigieg, VP, International Consulting, Economics and Country Risk at IHS,
and leader of the IHS team which jointly produced the report with the ERA said:
“This report is encouraging for the industry. It presents a positive outlook, and it
reflects the way the equipment hire sector continuously improves its operations
and service to customers. Improved logistics and planning are driving the
industry forward.
“The relatively high demand from non-construction sectors in the UK is
particularly encouraging. It shows that a wide range of UK businesses
increasingly see the benefits of equipment rental in helping them operate more
efficiently, which is good for the wider economy.”
Michel Petitjean, Secretary General of ERA, said: “The report shows how the
rental sector is evolving. Equipment rental brings real benefits to business, and
this is increasingly recognised across Europe.
“It allows more efficient use of capital, access to a wider range of equipment,
expert maintenance and servicing, compliance with regulations, and improved
sustainability performance. Intensively used, carefully chosen and wellmaintained
equipment on demand brings real benefits to the European economy
and environment.”
Among the elements in the report is a summary of the UK economic outlook. It
states: “Despite slower expansion in the first quarter of 2015, the economic
fundaments look broadly positive for the United Kingdom, particularly for the
consumer; we believe growth will be healthy during 2015 and 2016. Persistent
low oil prices should keep UK inflation very low, thereby boosting consumer
purchasing power along with strengthening earnings growth and rising
employment. Due to this and other indicators, we expect the economy to expand
2.6% year on year (y/y) in 2015 and 2.6% y/y in 2016.”
The ERA Market Report 2015 contains a country-by-country analysis of 14
European countries. It includes detailed market size information for the years
2012-2015 and key ratios including fleet size and investment. It also includes
penetration rates against countries’ GDPs, construction outputs and populations.
A special focus in the 2015 edition is on Germany. A dedicated chapter combines
quantitative and qualitative information. In the context of this specific effort to
examine the equipment rental market in greater detail, estimates have been
established for the breakdown of rental revenues by product, by end market, and
by channel to market.
The figures in the report are based on official statistics for NACE rev. 2 code
77.32: “Renting of construction and civil engineering machinery and equipment
without operator”. This is the industry standard classification system used in the
European Union.
The report contains 96 pages, with statistical information and expanded details
per country. Each country section contains four pages of detailed information in
local currency in order to better measure trends independently from the variation
of the currency exchange rate against the Euro.
The report, commissioned by ERA, is available to ERA members for €300 and to
prospective and non-members for €900. For copies please contact the European
Rental Association at Avenue Jules Bordet 142, 1140 Brussels, Belgium or by
email to era@erarental.org.
Notes to editors
The ERA Market Report 2015 is copyright-protected and proprietary to the
European Rental Association; however the information in this release may be
reproduced without further permission. Other figures, charts or findings from the
ERA Market Report 2015 Report may not be reprinted or photocopied in part or in
full without the advance written permission of the European Rental Association.
About ERA
The European Rental Association was created in 2006 to represent national rental
associations and equipment rental companies in Europe. Today the membership
includes over 5,000 rental companies, either directly or through 14 national rental
associations. ERA is active through its working groups in the fields of Promotion,
Safety and Sustainability, Statistics, Equipment Technology and Theft, and
General Rental Conditions. The next ERA convention is scheduled to take place in
Stockholm on 8 and 9 June 2016.
Extensive information on ERA's activities, reports and publications is available in
the ERA website at http://www.erarental.org
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical
areas that shape today’s business landscape. Businesses and governments in
more than 150 countries around the globe rely on the comprehensive content,
expert independent analysis and flexible delivery methods of IHS to make highimpact
decisions and develop strategies with speed and confidence. IHS has been
in business since 1959 and became a publicly traded company on the New York
Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is
committed to sustainable, profitable growth and employs about 8,800 people in
32 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names
may be trademarks of their respective owners. © 2015 IHS Inc. All rights
reserved.
Media Contacts
Katy Bloomfield at Founded: katy.bloomfield@founded.com or +44 7903 408979