Russian rental market to reach €1 billion within five years
By Murray Pollok27 May 2008
The Russian equipment rental market could reach €1 billion in revenues within five years, according to a leading Russian rental consultancy, MS Consulting.
Professor Nikolaev Sergey Nikolaevich, owner and director general of Moscow-based MC Consulting, said the Russian rental market has grown two and a half times in the past three years to a current value of around €500 million. He said growth would continue, with key drivers including the continued expansion of the Russian economy; the old age of many existing equipment fleets; the trend towards outsourcing of equipment; and annual rental rate rises of 5-10% a year.
“It can be assumed that the renting market capacity in Russia can reach €1 billion over the next five years”, said Professor Nikolaevich.
Professor Nikolaevich’s comments come in an article on the Russian rental market to be published in the June issue of International Rental News. In the article, he reveals key features of the rental market, including the estimate that Moscow and St Petersburg account for 42% of the total rental market, and the structure of the market, stating that of the estimated 200 rental companies in Moscow, 45% are pure rental companies, 30% are equipment dealers and 10% are contractors.
He also explains that although professional renting is still at a low level, there has existed a culture of renting construction equipment in Russia since the 1960s, when regional ‘equipment management trusts’ held fleets of equipment for rental to contractors. Two of these trusts, in Moscow and Ekaterinburg, still operate as rental companies, each with fleets of 500 machines.
Read the full article in the June issue of IRN.