In the process of analyzing the impact of Covid-19 on the European equipment rental industry, Mr. Michel Petitjean, Secretary General of the European Leasing Association (ERA) emphasized that there may be a possibility of stagnation in construction industry activities later in 2020.
As fewer new construction projects have been launched in the European market since the crisis broke out, Petitjean said, "The countries that have been working regularly on a regular basis in the past few months have begun to worry about the decline in the coming months, especially in the fall. risk."
Therefore, he said that the most important issue we have to consider at the moment is not the changes in the industry market in recent months, but the time and volume of the construction market recovery in the next 12 to 18 months.
Petitjean said: "The biggest question is whether public authorities will make plans to maintain and strengthen the infrastructure and housing market, because privately funded commercial and industrial markets may be severely affected."
During the equipment leasing activities in April (the period when Europe was most affected by Covid-19), Petitjean pointed out that activities in the south were between 15% and 40% of normal levels, while activities in northern and central Europe were at 40% ~%.
The degree of impact also depends on the type of rental business and inventory mix. Needless to say, so far, those who specialize in activity leasing have been the most affected.
In terms of long-term trends, Petitjean stated that "in terms of employment, there will be more health and safety issues, and if possible, increase domestic work." He added: "About various processes, including business, fleet management and Administrative management, this crisis will greatly accelerate the demand for digitization."
According to Petitjean, we may also see more development of self-driving rental warehouses. Finally, he said: "I think that the rental industry still has bright prospects because it is economically and environmentally meaningful. Moreover, this crisis is likely to help the equipment rental industry increase its diversification and penetration in various markets. ."
