DLR says rental members positive for Q3

French rental association DLR’s market barometer for the second quarter of the year revealed 7.5% year-on-year revenue growth for its equipment rental members.

That was lower than the growth seen by construction equipment distributors (+11.6%) and distributors and rental mcompoanies for industrial forklift trucks and agricultural handling equipment (+16.1%). Rental companies saw a 4.9% increase in revenues compared to the first quarter of the year.

DLR publishes a quarterly market Barometer covering equipment rental, construction equipment distributors, and the industrial material handling sectors. (Image: DLR)

Business activity levels and recruitment forecasts for the third quarter are trending downward for construction equipment distributors and material handling specialists, said DLR, but things are more positive for equipment rental; “Only rental business leaders are approaching Q3 with optimism.”

DLR said survey respondents remained concerned about rising interest rates ; “Higher interest rates make it more difficult to access finance, and - ultimately - to invest, and are also causing a slowdown in real estate and construction. At the same time, recruitment continues to be a challenge.

“As for the Olympics [Paris hosts the Games in summer 2024], their effect is a double-edged sword: some work is accelerating in the Paris region, but many other projects are postponed, at least temporarily.”

DLR said inflation rates had encouraged customers to switch to rental over buying, or to buy used equipment, but that a return to pre-crisis habits was now happening; “Whether for construction equipment distribution companies or for industrial and agricultural handling equipment distribution-rental companies, it is the sales of new equipment that are now driving growth, as sales of second-hand equipment are declining.”