DLR survey shows impact of the Olympics on the French rental market

Photo: DLR

A survey by French rental association DLR has found that its members reported a +5.4% increase in growth for the second quarter of the year compared to the same period in 2023.

That is a significant increase on the start of the year for its members, after what it desbribes as an “historically weak start” at +0.9%. 

Meanwhile, companies reported a +8.3% increase from the previous quarter.

It said that although the companies surveyed are mixed regarding the factors that influenced their activity this quarter, members responded positively to the impact of the Olympics, which were held in Paris this year.

However, it said that some companies “fear the backlash” from the Olympics in the following quarters and cite the low number of working days as a factor that constrained their activity in Q2.

According to the responding companies, three factors explain the increase in the sector’s revenue in Q2 2024, year-on-year.

54% said the increase in prices and the increase in the value of the fleet have driven their activity upwards, while 42% highlighted equipment turnover rate.

35% of responding companies believe that the turnover rate has negatively affected their revenue, compared to 27% for price and 23% for the value of the fleet.

Elswehere, it found that the turnover of companies distributing construction equipment decreased by 6.7% this quarter year-on-year, after an increase of +1.1% in the first quarter.

Quarter-on-quarter, the turnover of distribution decreases by 7.9%. 

As for activity expectations for Q2 2024, 59% of respondents anticipate a stagnation of their revenue, 26% foresee an increase, and 15% a decrease.

The association said, “The companies surveyed express particular concern about the political situation and the uncertainty that arises from it.”