According to latest results of IPAF’s annual survey of the rental market, the aerial work platform (AWP) rental market is growing in the US. For the first time ever, the survey includes an estimate of the size of the worldwide AWP rental fleet, which has been set at approximately 950,000 units.
The US AWP rental market experienced robust growth in 2012 (+6%) to reach a total revenue of approximately $6.6 billion, according to the IPAF US Powered Access Rental Market Report 2013.
In order to increase revenue, AWP rental companies chose to increase rental rates (+3%) at the expense of utilization rates (-2 points). This strategy is expected to continue in 2013.
While rental companies kept fleet sizes steady in 2011, 2012 saw a return to fleet expansion (+6%). Fleet size and investments are expected to increase in 2013. Rental companies report a focus on specialist equipment such as smaller scissors or very-high booms.
The US construction sector grew slightly in 2012 compared to 2011, and should continue to grow at a modest rate in 2013, with beneficial effects for rental companies.
Most US access industry representatives continue to believe that construction companies are investing less in AWP purchases and turning more to rental as it allows for limited maintenance, transportation and storage costs. This trend should continue to drive market growth.
Tier 4 compliance is expected to have a positive effect on the rental market as Tier 4 machines are more expensive to acquire and more costly to manage. Renting these machines instead of purchasing will be the best solution for many companies.
The Canadian AWP rental market experienced 5% growth in 2012 and rental rates remained relatively stable. In 2012, several rental companies in Canada acquired used equipment from the US as AWP manufacturers had very long lead times.
The Brazilian AWP rental fleet is meanwhile estimated to have reached 19,000 to 19,500 units at the end of 2012, a phenomenal growth of 30% over 2011. Industry players expect that this market will continue to grow strongly, with an average of 20 to 25% annual increase in the next four years.
In contrast to the growing US market, the European AWP rental market is stable, although marked by stark differences across different countries.
The European AWP rental market in the 10 countries surveyed remained stable in 2012 (+0%) and is estimated at approximately €2.3 billion ($3 billion), which would then put the total European market at around €2.6 billion ($3.4 billion), according to the IPAF European Powered Access Rental Market Report 2013. The 10 European countries surveyed were: Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden and the UK. The European market is defined as the 27 European Union countries, plus Norway, Switzerland, Slovenia, Croatia and Macedonia.
The generally flat trend in Europe belies some major differences among the countries concerned. The European rental market shows mixed results and is marked by three groups: those who struggled in 2012 (Spain, Italy and the Netherlands), those who slightly increased rental revenues (Denmark, UK, France and Sweden), and those who experienced significant growth (Germany, Finland and Norway).
The AWP rental markets in Germany, Norway and Finland grew between 5 to 10% in 2012. Rental companies in these countries expanded fleet size (up to +7%) and were able to slightly increase rental rates (1 to 6%).
In the UK, France, Denmark and Sweden, AWP rental markets remained relatively stable in 2012 with growth rates between +1% and +4%. In these countries, rental companies slightly expanded fleets (+2 to +5%), but rental rates remained flat. Only in Denmark did rental companies continue to de-fleet.
Italy, Spain and the Netherlands are the most difficult markets, showing negative growth from -6% to -19%. Rental companies reduced fleet size, sometimes heavily as seen in Spain, and continued to lower rental rates.
In 2013, the European market should remain flat, although Spain and the Netherlands will still experience negative growth. Norway, Sweden, Germany and the UK will lead the positive trend.
