Italian rental market shrinks by 5% in 2011

The Italian rental market will fall in value by a projected 5% this year according to the latest rental market study prepared by Assodimi, the Italian association for rental and distribution.

The report, prepared by Federico Della Puppa, a professor of business administration at the University of Venice, finds that the Italian rental market shrank by 2.1% to €1.6 billion in 2010 and is forecast to fall by a further 5% to €1.53 billion this year.

The Italian rental market hit a peak in 2008 with total revenues of €1.72 billion, and since then have fallen steadily.

Detailed results by sector for 2010 also reveal the rental markets most impacted by the financial crisis. Overall, Italy's rental market has grown by 5.7% since 2007. However, this masks a wide variation in the performance of individual product groups.

Aerial platform rentals have grown by 38% since 2007 and scaffolding by almost 50% in the period, while power rentals has risen by 27% and modular buildings by 58%. Earthmoving rentals has declined by 7.5% since 2007 while both construction equipment (tools, compressors, etc.) and crane rentals have fallen by almost a quarter.

Earthmoving is the largest rental business in Italy, accounting for revenues of €345 million in 2010, representing a 21.4% share of the total, followed by scaffolding (€324 million), aerial platforms (€294 million), power (€194 million) and construction tools (€140 million).

Franco de Michelis, secretary general of Assodimi, who also helped in the research for the report, told IRN that the findings differed from the ERA's recently published European Equipment Rental Industry 2011 Report.

He said the findings reflected the "particularity of the Italian rental industry" and that the two studies provided a "complementary view of the Italian situation."

According to the report there are 2708 companies renting construction machinery and equipment, of which 1111 have a turnover of more than €150000. Around a half of all companies are specialist renters. Just 80 companies have more than three depots in Italy.

The full market report can be bought from Assodimi, costing €500 for members and €900 for non-members. Assodimi members can also order smaller regional reports covering specific market sectors for €100.