ERA forecasts 5.6% rental growth in 2022
By Murray Pollok24 November 2021
The European Rental Association (ERA) is forecasting a 5.6% increase in rental activity in Europe in 2022 following estimated growth of 6.3% this year.
The organisation, which is publishing its 2021 Market Report, estimates that the industry shrank by 7.2% in 2020 when the pandemic had its greatest impact. ERA said the industry generated revenues of €25.2 billion in 2020.
The association, which works with consultant IHS Market on its estimates and forecasts, said Covid continued to hamper the recovery directly and indirectly.
“The Nordic countries, which did not lock down and with almost no site shutdowns, performed better than southern Europe and the UK, which faced severe lockdowns and disruptions to activity”, said ERA.
“With Brexit having now taken effect, the UK finds itself in a difficult position as the sourcing of materials now incurs increased costs, and the labour shortage, present across Europe, is further exacerbated.”
ERA said the reopening of European economies after the first quarter of 2021 has benefited rental activity; “The performance throughout the rest of the year improved in most markets and now points to a solid growth forecast for 2021, mainly in Southern Europe and the UK, which were the worst-hit regions, while growth in Nordic countries and Eastern Europe remains more constrained.”
The report also confirms the difficulties faced by companies in 2020, with markets like France, Italy, Spain and UK all falling “considerably”, while others such as Switzerland, Sweden and Germany also lost ground but fared better overall.
ERA said it was important to stress the “extreme conditions” of 2020 and 2021, with “large peaks are expected this year, and further significant growth is expected in the short term.”
The study analyses 15 European markets, plus the Baltic states, with detailed market size results for 2018–19 (actual), 2020–21 (estimates) and 2022–23 (forecasts). These countries account for more than 95% of the equipment rental industry in the EU, the European Free Trade Association (EFTA) and the UK.
The market report is being published later than normal because of a delay in receiving 2019 data from Eurostat. When the data is available, and if required, an updated version of the report will be published.
The publication is available digitally for ERA members (€500) and for non-members (€1,200). To order a copy, contact the European Rental Association at email@example.com.