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Engineering Industry Reports and Surveys
News Release from: Frost and Sullivan
Edited by the Engineeringtalk Editorial
Team on 29 September 2006
Positive outlook for industrial rentals
Survey finds that the EMEA power, distribution and temperature control rentals market earned revenues of $1.1 billion in 2005 and estimates this to reach $1.7 billion in 2012.
Backed by a positive industrial and construction outlook across the region, the Europe, Middle East and Africa (EMEA) power, distribution and temperature control equipment rentals market is poised for strong growth Such trends will be reinforced by improved standards of living across EMEA, which will spur demand for temporary power and temperature control equipment in the coming years
This article was originally published on Engineeringtalk on 9 Aug 2000 at 8.00am (UK)
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Frost and Sullivan finds that the EMEA power, distribution and temperature control rentals market earned revenues of $1.1 billion in 2005 and estimates this to reach $1.7 billion in 2012.
"The positive outlook for the industrial and construction sectors - both key customers of EMEA power, distribution and temperature control rentals - is promoting market growth", notes Frost and Sullivan.
"Backed by the rise in demand from these end-user segments, Frost and Sullivan expects the market to grow at 6.6% during 2005 to 2012".
In addition to leading multinational companies such as Aggreko, Caterpillar, GE Energy Rentals and Cummins, large regional companies like Bredenoord and Longville Group also have a significant competitive presence.
To capture a greater share of this increasingly competitive and high growth market, these companies are following various growth strategies including restructuring their business for better cost and asset management, building big brands, as well as entering into mergers and alliances.
At present, the most serious risks affecting growth prospects are the market uncertainty and geopolitical instability prevailing in the Middle East and Africa.
Companies are wary of expanding their operations in these volatile regions due to concerns over equipment safety and high insurance costs that reduces their profitability.
"Many market participants are choosing to follow a "cherry picking" strategy by undertaking only projects that are safe and provide attractive return on investment rather than aggressively competing for all the projects in the Middle East and Africa", comments Frost and Sullivan.
"Most companies are also insuring the equipment that they rent in this region, while passing these costs onto their clients through premium pricing".
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