20
RENTAL SURVEYS
In each country there were more companies
reporting worsening conditions than were seeing
improvements. The Benelux region also remains
subdued, although at least with a +13% balance of
opinion on business conditions.
Benelux companies are among the most
cautious on fleet investment next year, along
with France and Spain, and were least confident,
after Spain, about business prospects for 2014,
with less than a third of companies anticipating
an improvement. That compares to 49% for all
respondents.
The Nordic region remains one of Europe’s
most buoyant areas. Three quarters of
respondents from the region are expecting
further improvements next year; there was a
+26.1% balance of opinion on current business
conditions; and half were seeing improving fleet
utilisation levels.
However, companies in the Nordic region
remain cautious on investment, with just
29% expecting to increase spending by
more than 10% next year – which is almost
the same as the average for Europe as a
whole.
Confident multinationals
Multinational companies remain among the
most confident, and are more likely to be reporting
Europe:
Year to date
IRN NOVEMBE-DECEMBER 2013
FIGURE 4
150%
100%
50%
0%
-50%
-100%
Worse
Balance of opinion
Same Better
Europe:
Next quarter
employment
intentions
FIGURE 5
Q
3-12
Q
3-13
Q
3-10
Q
3-09
Q
3-11
79.6%
12.2%
8.1%
+42.8%
17.0%
23.2%
59.8%
+7.9%
30.5%
31.1%
38.4%
+5.9%
27.7%
38.6%
33.7%
-71.5%
24.4%
32.9%
42.7%
+18.3%
Rest of the World
It is not surprising that by almost every measure, rental companies outside Europe are reporting better
business conditions than their counterparts in Europe. We had 120 responses from the ‘rest of the world’
area, including 40 from North America, around 20 from South America, 15 from the Middle East and Africa,
and 35 from Asia, which includes India, Japan, Australia and New Zealand.
In terms of current business conditions, only Asia ranked lower than Europe, with the China slowdown
and Australia’s cooling natural resources sector both having an impact. Rental companies in North and
South America were the most happy with current business conditions, beaten only by UK respondents.
In all the rest of the world territories, a healthy proportion were reporting higher year-on-year
revenues for the third quarter - 70% in the case of South America. That compares to the 36% average
for Europe. Some 44% of rest of the world business were expecting to employ more staff in the final
three months of this year - that’s double the Europe figure. Only Russians were more upbeat on their
recruitment plans.
The essential difference between the regions is illustrated by views on revenue expectations for the full
year 2013. While 37% of all Europeans were anticipating increased sales this year, the same statistic for
North America was 55%, in South America it was 63%, and in Middle East and Africa it was 53%. Asian
rental businesses were closer here to their European counterparts, with 37% forecasting higher revenues.
A good proportion of these respondents are from Australia, where business has fallen off from a natural
resources investment boom.
Improving utilisation
Given that rental businesses in the rest of the world have been enjoying a more favourable business
environment than in Europe for some time, it is perhaps surprising that many are still reporting
improvements in utilisation rates. Companies in the Middle East and Africa were most likely to report
rising utilisation rates in the third quarter - 77% did so - while the average for all rest of the world
companies was 51%, compared to 39% for Europe. In this measure, rental companies in the UK, European
multinationals and Nordic firms, equalled their counterparts elsewhere.
Planned investment rates this year and next tell a similar story, with 44% of rest of the world companies
reporting at least a 10% increase in fleet spending this year (it was 28% in Europe). The figures for 2014
are more interesting, and reveal that 43% will increase investment by at least 10%, again, higher than the
European 30%.
Those with the most ambitious spending plans are companies in the Middle East and Africa, followed
by South America. North American rental companies were less likely to be increasing spending – almost
a third will increase investment by at least 10%, just below the European average - but the context is
different, with many North American businesses having already spent at a high level for several years.
Overall the survey paints a picture of a still growing South American rental sector; continued reasonable
conditions in North America and a similarly upbeat environment in the Middle East/Africa. Only in Asia,
with the complications of China and Australia, is there a more subdued environment.
Worldwide: Revenue
expectations – 2013
against 2012
TABLE 1
EUROPE
>10% higher
9
+5% to +10%
28
Stable
40
-5 to -10%
16
>10% lower
7
NORTH AMERICA
>10% higher
12
+5% to +10%
43
Stable
36
-5 to -10%
4
>10% lower
0
SOUTH AMERICA
>10% higher
42
+5% to +10%
21
Stable
26
-5 to -10%
10
>10% lower
0
ASIA
>10% higher
17
+5% to +10%
20
Stable
30
-5 to -10%
20
>10% lower
13
MIDDLE EAST/AFRICA
>10% higher
13
+5% to +10%
40
Stable
27
-5 to -10%
7
>10% lower
13
0 10 20 30 40 50 60 70 80 90 100
0 10 20 30 40 50 60 70 80 90 100
0 10 20 30 40 50 60 70 80 90 100
0 10 20 30 40 50 60 70 80 90 100
0 10 20 30 40 50 60 70 80 90 100
EMPLOY MORE
19.5%
EMPLOY LESS
10.9%
NO CHANGE
69.6%
Q
3-13
Q
4-13
EMPLOY MORE
22.5%
EMPLOY LESS
11.8%
NO CHANGE
65.7%
