Growth in the UK equipment rental sector expected to slow post-Brexit, says the European Rental Association
While growth in the UK equipment rental sector is expected to continue in 2017, growth forecasts have been downgraded following the Brexit vote. This is according to a new report from industry body, the European Rental Association (ERA).
It estimates that turnover in the UK equipment rental sector increased 2.8% in 2016 to £5,739 million and is expected to grow 1.9% in 2017.
Political uncertainty has put industry growth on hold, with the unknown effects of the Brexit vote creating a downward revision compared to the 2015 forecast.
The ERA Market Report 2016 provides the most comprehensive data available on the European equipment rental industry and is produced in cooperation with IHS, an independent research company.
Amongst other findings, the report highlights the importance of the digitalisation of construction equipment rental activity in the UK, both in winning new business and in retaining customers. It notes that rental companies are therefore investing and allocating resources to innovative projects.
The report also notes a split in rental demand between construction and non-construction, with the latter accounting for 40% of demand in the UK.
Michel Petitjean, ERA Secretary General, said:
“It is encouraging to see how the market is becoming increasingly diverse and sophisticated. Logistics and technology continue to pave the way forward, as rental companies seek to expand their customer sectors and provide added-value services.”
“At ERA, we see a growing recognition for the advantages that renting brings to businesses. These include 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 well-maintained equipment on demand can bring real benefits to companies across the continent”.
Among the elements in the report is a summary of the UK economic outlook. It states: “The UK equipment rental market has been amongst the first to recover from the crisis and saw strong growth through to 2012. While the picture has been more mixed over the past few years, it’s encouraging to see how the market is evolving.”
The ERA Market Report 2016 contains a country-by-country analysis of 15 European countries. It includes detailed market size information for the years 2013-2018 and key ratios including fleet size and investment. It also includes penetration rates against countries’ GDPs, construction outputs and populations.
The Nordic Countries chapter completes a first round of focuses that for the first time allowed a breakdown of the rental revenues by main product categories and by end-market categories for a "typical" rental generalist.
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 100 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 non-members for €900. For copies please contact the European Rental Association at Avenue Jules Bordet 142, 1140 Brussels, Belgium or by email to firstname.lastname@example.org.
Notes to editors
The ERA Market Report 2016 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 2016 Report may not be reprinted or photocopied in part or in full without the advance written permission of the European Rental Association.
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, Technical and Theft, and General Rental Conditions.
Extensive information on ERA's activities, reports and publications is available in the ERA website at http://www.erarental.org.
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide.
The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 80% of the Fortune Global 500 and the world’s leading financial institutions.
Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Katy Bloomfield at Founded: email@example.com or +44 7903 408979