IRNAPRIL-MAY 2015
21
ERA/
IRN
RENTALTRACKER
Europe: Employment
intentions fornext
quarter
FIGURE4
Asked end of
Q
1 2015
Asked
end of
Q
4 2014
respondents reporting an improvement in business
activityofmore than 10%.
Taking minimum growth of 5% as the benchmark,
Italy had the second best result. Perhaps fittingly
in a year when it will host the European Rental
Association Convention and Awards, more than 60%
of Italian companies who took part in the survey
reported this level of improvement. The UK was
third, though most of its companies’ growth was
between5and 10%, highlightingacautiousapproach
influenced by economic fluctuations in the country
in recent years. Francewas the only countrywith no
respondentsclaiminganynetgrowthat all compared
to theprevious year.
Expectations
In terms of individual countries, Germany showed
the biggest difference between its experience in the
openingquarter and itsexpectations for the full year
of 2015. Whereas less than a third of companies felt
they were currently doing more business than last
year – a smaller percentage than anywhere except
France or Russia - more than half said this would be
the caseat theyear end.
The Nordic countries also showed increased
confidence, from 64% reporting current growth of
at least 5% to 82% expecting it further down the
line. In absolute terms, the UK’s return was exactly
the same for both questions, but the year end total
was three timesashigh in thecategory for growthof
10%or greater.
In possibly the most reliable indicator, more than
70% of multinationals expected increased growth
later in the year, and none of the multinational
respondents thought business would be any worse
than “stable”.
This was repeated in the question on business
levels as a whole in 12months time, withmore than
four out of every five respondents saying itwouldbe
at least 5% higher. All German, Italian and Spanish
respondents believed growth would be at least
stable, though no Spanish companies felt confident
enough topredict growthofmore than 10%.
Taking time utilisation as the yardstick, companies
in most countries expect it to remain as it is now,
give or take 5%, despite their increasing confidence
about business levels.
“Stable” accounted for the biggest single level of
response from all countries except theNordic region
and Spain, and more than half the total responses
from the UK and multinational companies. Perhaps
with this in mind, intentions with regard to fleet
investment appear relatively low key for the rest
of this year before a surge in 2016 when 70% of UK
companies, half of Nordic companies and almost as
manyGermansandmultinationalsexpect to increase
fleet investment by more than 25%, and even the
vast majority of companies in the troubled French
and Spanish markets will be looking to make fleet
investment invaryingdegrees.
For the rest of 2015, however, the trend looks to
be towards a calmer approach. Maybe the rental
industry needs another quarter or two like the one
just gone before it can finally start to believe that
themarket’s recovery is a reality.
IRN
Sponsored by:
EMPLOYMORE
30.7%
EMPLOY LESS
16.8%
NOCHANGE
52.5%
EMPLOYMORE
31.0%
EMPLOY
LESS
9.2%
NOCHANGE
59.8%
