Early indicators are positive for construction manufacturers which rely on the rental industry, said Malcolm Early, vice president of marketing with
Rental growth of about 3% is expected in Europe, but there is pent-up demand for specific products such as lift booms, he explained.
“Many of these purchases are anticipated because booms were getting older and purchases limited during the recession,” Early added. That means specific products will be likely to see growth beyond that 3%.
The past two years in the US have been strong, and Early expects another good year. In the US the American Rental Association is predicting strong growth of 6.6%.
Many larger US rental companies have delayed purchases for a quarter because Wall Street is watching their finances. But that delay should not harm overall annual numbers, Early said.
“They still plan to make their purchase,” Early said. “They’re just delayed a little bit. But they’re still ordering and buying.”
Asia, as always, is a “sleeping giant,” Early continued. “Economic growth has not been as strong, but the rental business is not mature, so there remains growth there.” That growth should benefit manufacturers such as Skyjack.
Brazil remains “quiet,” in part because of construction controversies. Australia is “a little bit quiet” with most growth coming from infrastructure and government spending.
The overall global outlook is good but Early also cautioned that the forecasting data is not comprehensive. “It’s only two months of data,” he concluded.
