At the beginning of 2016, the risk level of the Machinery sector in several countries such as the United States, Canada, or China is assessed as sensitive.
Euler Hermes forecasts revenues to decline by -5% in 2016, with only one segment bucking the trend: services. In fact, renting is showing increasing activity with a quite positive outlook. For example, the U.S. forecast growth rate stands at +5% a year until 2019.
On the backdrop of continuing uncertainty about future yields, businesses prefer to rent or lease the necessary machineries to run operation than purchase. In the current atmosphere, committing funds for 5 to 7 years with no guarantee on return on investment is not the strategy of choice for many companies.