IRN100 rental survey highlights shifting currents

A picture has emerged of a relatively stable year, with the momentum behind the recovery in North America contrasting with a still-slow Europe and a faltering Australia.

And this came amid modest growth from emerging countries, where fledgling rental markets are still gaining ground.

There was one important factor to note that had a significant impact on the table – the issue of currency fluctuations.

The Japanese Yen (JPY) has been hit particularly hard, depreciating 27% between 12 December, 2012, and 12 December, 2013. The same applies, to lesser degree, to the Australian and Canadian Dollars.

Weakening the Yen is part of the Japanese government’s efforts to help stimulate its economy, and while it may be good news for the country’s exporters, it does skew the figures in the IRN100 ranking for Japanese companies.

Indeed, of the 10 Japanese companies listed on the IRN100, all but one either remained in the same position as the 2012 or lost ground on the ranking year-on-year, despite in many cases growing their local currency revenues.

Healthy growth

Adjusting for currency changes between 2012 and 2013 shows that, overall, IRN100 company revenues grew by 7.5%, which is a healthy growth rate given the wider economic backdrop.

Much of this growth relates to North American businesses, where year-on-year corrected growth was 10.7%. Japanese companies also saw very respectable increases, with an average of 7.9%.

European IRN100 firms saw a much more modest average growth of 2%, while companies in the rest of the world were almost flat at +0.4%.

That flat result reflects the slow Australian economy, which has offset growth among the South American and Middle East companies in the list.

The big three global players maintained their 2012 positions, with United Rentals remaining the largest rental company in the world, followed by Aggreko and Ashtead Group.

However, there was change at places four and five, and further down the ranking.

To view the complete IRN100 ranking, together with the ERN50 ranking of the top 50 European companies by rental revenues, see the June issue. The analysis also includes all last year’s new entrants and drop-outs, as well as details of capital expenditure trends.