UK
construction equipment rental market saw a significant increase of around 9% in 2014 compared to the previous year. Hire
rates had fallen at the start of the downturn, but an improvement in market
conditions have allowed rates to rise in recent years, although some sectors,
such as cranes, have only really seen a noticeable improvement in 2014. The
market value remains lower than at its
peak in 2007, but is currently estimated at around £4bn, based on AMA’s
market definition.
Despite some consolidation in recent years, the
UK construction equipment rental industry remains extremely competitive with
players ranging from national equipment rental companies to local independents
operating in the market. Companies range widely in terms of geographical
coverage, financial resources, brand recognition and equipment offered, with
some companies more reliant on construction, whereas other companies have
developed more diverse markets, such as manufacturing, recycling and events.
In
terms of product sectors, earth moving equipment represents the largest sector,
accounting for over 20% of hire value. Other key sectors include lifting, skips
& rubbish chutes, access equipment, portable buildings & environmental
control and hand & power tools. This is a relatively fragmented market,
reflecting the high number of specialist operators with different competitors
in different hire product sectors. As indicated above, the market continues to
consolidate, with the top 4 companies accounting for around 30% of the market,
supported by a range of specialists in key sectors as reviewed in AMA’s report.
The overall market was relatively flat and
only experienced modest growth for the period 2010-2013, but market value
increased significantly in 2014 due to improvements in both housing and
non-domestic building markets as well as manufacturing and other non-construction
end-use sectors.
Infrastructure has
provided significant hire demand including rail projects such as Crossrail,
road repairs & maintenance, and utilities work, and other key end-use
sectors include housebuilding, offices, industrial and non-construction sectors,
such as manufacturing, waste management and events. While the manufacturing sector has
been volatile in recent years, other sectors, such as transport, have recorded
a more robust performance – while waste management and events offer good
opportunities for equipment hirers.
Current prospects for the construction
equipment rental market into the medium-term remain cautiously optimistic with
the market forecast to grow to around £5bn by 2019. Future growth rates are
heavily dependent upon the underlying performance in key application areas –
mainly construction and infrastructure - while high levels of competition
impact negatively on hire rates in some sectors. The hire versus buy
issue will continue to impact on the equipment rental sector and it is possible
that some contractors will switch back to buying equipment, rather than hiring,
in the future.
“Trends
within the construction industry will impact on different sectors of the hire
market. For example, the underlying long term growth in off-site manufacturing,
will tend to erode on-site hire requirements” said Andrew Hartley, Director of
AMA Research. “However, the sector has
experienced a good recovery in the last 2 years, and prospects remain
optimistic as the economy continues to recover”.
The ‘Construction Equipment Rental Market Report – UK 2015-2019 Analysis’
report is published by AMA Research, a leading provider of market research and
consultancy services within the construction and home improvement markets. The
report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242
235724.
No comments:
Post a Comment