Plant Hire Market Report 2007

The UK market for plant, tool and access hire was worth an estimated £7.63bn in 2006. This figure was split between plant hire (which, in round figures, accounted for 70% of the market), tool hire (approximately 20%) and scaffolding and access-platform hire (10%). More exact figures for the three sectors of the market are shown within this report.

Plant hire covers the rental of capital items of plant and equipment, particularly construction plant, to professional users. Increasingly, the use of a trained and certified operator is included as part of the rental agreement. Tool hire refers to the rental of hand tools and smaller items of plant, with a large proportion of customers being small builders and the general public. There is a degree of crossover between the two markets, especially where items such as mini-excavators and access platforms are involved. Tool-hire companies are also becoming heavily involved in the supply of non-operated equipment. The best-performing sectors of the market in the short term are expected to be crane and access hire.

The construction market has shown good growth since the last edition of this report (published in 2001), but competition in the saturated UK plant-hire market has been fierce. Consolidation and a focus on core sectors are occurring throughout the industry, and growth through acquisition is the order of the day. Health-and-safety legislation has played an important role as a driver of the market for plant, tool and access hire, as has the increasing reliance on external facilities-management providers by UK businesses.

Plant utilisation in the competitive UK market needs to be around 90% — a figure that is difficult to achieve. Most firms are investing heavily in IT systems that will allow the efficient tracking of hire items and tight control of contracts, increasing utilisation and allowing plant items to be rented well beyond the normal sales reach of a depot. Around 80% of UK construction plant is sold to the rental sector — more than in any other country in Europe — and UK firms have been investigating European markets with increasing interest, despite the fact that these are well served by local businesses.

The UK market for plant, tool and access hire is expected to show reasonably strong growth between 2007 and 2011, with the key UK players increasing their revenues from international markets, as well as benefiting from the improved climate for plant hire within the UK. The non-residential construction sector has been upbeat for some years now, although a number of major projects are due to be completed in the short term. In light of the increased revenues from acquisitions, Key Note expects stronger growth than UK markets would suggest, and forecasts that growth in the plant-hire sector will be between 5% and 8% in the short term. The tool-hire market is not expected to perform as strongly, and growth rates are forecast to be more in line with growth in construction, at between 3% and 4% per year. SHOW LESS READ MORE >

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Plant Hire

Tool Hire

Scaffolding and Access-Platform Hire

MARKET TRENDS

The Construction Industry

New Orders

Table 1: New Orders Obtained by Contractors by Sector at Constant 2000 Prices (£m), 2002-2006

Table 2: New Orders Obtained by Contractors by Sector at Current Prices (£m), 2002-2006

Construction Output

Table 3: Construction Output by Sector at Constant 2000 Prices (£m), 2002-2006

Table 4: Construction Output by Sector at Current Prices (£m), 2002-2006

Table 5: Non-Residential Construction Output by Type of Work at Current Prices (£m), 2002-2006

Housebuilding

Other New Work

Repair and Maintenance

ECONOMIC TRENDS

MARKET POSITION

The UK

Table 6: The Main Users of Plant and Tool Hire in the UK by Value (%), 2006

Europe

Construction Output

Table 7: Construction Output of Selected European Countries (Ebn), 2002-2006

Road Maintenance

Table 8: Expenditure on Road Maintenance in Selected European Countries (Em), 2004/2005/2006

2. Market Size

THE TOTAL MARKET

Table 9: The UK Market for Plant, Tool and Access Hire at Current Prices (£m), 2002-2006

BY MARKET SECTOR

Plant Hire

Table 10: The UK Market for Plant Hire at Current Prices (£m), 2002-2006

Figure 1: The UK Market for Plant Hire at Current Prices (£m), 2002-2006

Equipment Categories

Tool Hire

Table 11: The UK Market for Tool Hire at Current Prices (£m), 2002-2006

Figure 2: The UK Market for Tool Hire at Current Prices (£m), 2002-2006

Equipment Categories

Scaffolding and Access-Platform Hire

Table 12: The UK Market for Scaffolding and Access-Platform Hire at Current Prices (£m), 2002-2006

Figure 3: The UK Market for Scaffolding and Access-Platform Hire at Current Prices (£m), 2002-2006

Equipment Categories

OVERSEAS TRADE

3. Industry Background

RECENT HISTORY

Table 13: Private Contractors' Turnover by Main Trade at Current Prices (£m and %), Third Quarter 2001-2005

Table 14: Plant Hirers with Operatives — Value of Work Done by Number of Employees (£m and %), Third Quarter 2004 and 2005

Table 15: Scaffolding Specialists — Value of Work Done by Number of Employees (£m and %), Third Quarter 2004 and 2005

Table 16: Plant Hirers and Scaffolding Specialists — Value of Work Done by Type of Work (£m and %), Third Quarter 2004 and 2005

INDUSTRY SYNOPSIS

Table 17: Industry Synopsis — Renting of Construction and Civil-Engineering Machinery and Equipment, 2007

Table 18: Industry Synopsis — Renting of Construction or Demolition Equipment with Operator, 2007

NUMBER OF COMPANIES

Table 19: Private Contractors by Trade (number and %), Third Quarter 2001-2005

Table 20: Number of UK VAT-Based Enterprises Engaged in Agricultural Machinery Hire, Plant Hire and Construction Equipment Hire by Turnover Sizeband (£000, number and %), 2006

Table 21: Number of UK VAT-Based Enterprises Engaged in Agricultural Machinery Hire, Plant Hire and Construction Equipment Hire by Employment Sizeband (number and %), 2006

EMPLOYMENT

Table 22: Private Contractors — Total Employment by Trade (000 and %), Third Quarter 2001-2005

Table 23: Private Contractors — Number of Operatives Employed by Trade (000 and %), Third Quarter 2001-2005

Table 24: Plant Hirers with Operatives — Number of Firms by Number of Employees (number and %), Third Quarter 2004 and 2005

Table 25: Scaffolding Specialists — Number of Firms by Number of Employees (number and %), Third Quarter 2004 and 2005

REGIONAL VARIATIONS IN THE MARKETPLACE

Table 26: Number of UK VAT-Based Enterprises Engaged in Agricultural Machinery Hire, Plant Hire and Construction Equipment Hire by Region (number and %), 2006

HOW ROBUST IS THE MARKET?

LEGISLATION

Construction Industry Scaffolder's Record Scheme

KEY TRADE ASSOCIATIONS

Industry Associations

Construction Plant-hire Association

European Rental Association

Hire Association Europe

International Powered Access Federation

National Access and Scaffolding Confederation

Prefabricated Access Suppliers' and Manufacturers' Association

Scottish Plant Owners Association

Other Relevant Associations and Organisations

Committee for European Construction Equipment

Construction Equipment Association

Construction Products Association

ConstructionSkills

United Crane Operators Association

4. Competitor Analysis

THE MARKETPLACE

Plant Hire

Tool Hire

Scaffolding and Access-Platform Hire

MARKET LEADERS

Plant Hire

Table 27: Selected Leading UK Plant-Hire Companies by Turnover and Pre-Tax Profit (£m and %), 2005/2006

Tower Cranes

Table 28: Major UK Operators of Tower Cranes by Average Number of Cranes in Fleet, 2006

Tool Hire

Table 29: Selected Leading UK Tool-Hire Companies by Turnover and Pre-Tax Profit (£m and %), 2006/2007

Scaffolding and Access-Platform Hire

Table 30: Selected Leading UK Scaffolding and Access-Platform Hire Companies by Turnover and Pre-Tax Profit (£m and %), 2005/2006

SELECTED MAJOR COMPANIES

Aggreko PLC

Company Structure

Current and Future Developments

Financial Results

Table 31: Aggreko PLC — Financial Performance (£m and number), 2004-2006

Ainscough Group

Company Structure

Current and Future Developments

Financial Results

Table 32: Ainscough Crane Hire Ltd — Financial Performance (£m and number), 2004-2006

Amey Fleet Services Ltd

Company Structure

Current and Future Developments

Financial Results

Table 33: Amey Fleet Services Ltd — Financial Performance (£m and number), 2004-2006

Ashtead Group PLC

Company Structure

Current and Future Developments

Financial Results

Table 34: Ashtead Plant Hire Company Ltd — Financial Performance (£m and number), 2004-2006

Brandon Hire PLC

Company Structure

Current and Future Developments

Financial Results

Table 35: Brandon Hire PLC — Financial Performance (£m and number), 2004-2006

Cape Industrial Services Ltd

Company Structure

Current and Future Developments

Financial Results

Table 36: Cape Industrial Services Ltd — Financial Performance (£m and number), 2004-2006

Deborah Services Ltd

Company Structure

Current and Future Developments

Financial Results

Table 37: Deborah Services Ltd — Financial Performance (£m and number), 2004-2006

GAP Group Ltd

Company Structure

Current and Future Developments

Financial Results

Table 38: GAP Group Ltd — Financial Performance (£m and number), 2004-2006

Hewden Stuart PLC

Company Structure

Current and Future Developments

Financial Results

Table 39: Hewden Stuart PLC — Financial Performance (£m and number), 2004-2006

HSS Hire Service Group Ltd

Company Structure

Current and Future Developments

Financial Results

Table 40: HSS Hire Service Group Ltd — Approximate Breakdown of Turnover by Sector (%), 2006

Table 41: HSS Hire Service Group Ltd — Financial Performance (£m and number), 2004-2006

Lavendon Group PLC

Company Structure

Current and Future Developments

Financial Results

Table 42: Lavendon Group PLC — Financial Performance (£m and number), 2004-2006

Table 43: Zooom Holdings (UK) Ltd — Financial Performance (£m and number), 2003-2005

Select Plant Hire Company Ltd

Company Structure

Current and Future Developments

Financial Results

Table 44: Select Plant Hire Company Ltd — Financial Performance (£m and number), 2004-2006

Selwood Group Ltd

Company Structure

Current and Future Developments

Financial Results

Table 45: Selwood Group Ltd — Financial Performance (£m and number), 2003-2005

SGB Services Ltd

Company Structure

Current and Future Developments

Financial Results

Table 46: Harsco Access Services Division — Sales and Operating Income ($m and %), 2003-2005

Table 47: SGB Services Ltd — Financial Performance (£m and number), 2004-2006

Speedy Hire PLC

Company Structure

Current and Future Developments

Financial Results

Table 48: Speedy Hire PLC — Financial Performance (£m and number), 2005-2007

Vp PLC

Company Structure

Current and Future Developments

Financial Results

Table 49: Vp PLC — Financial Performance (£m and number), 2004-2006

OUTSIDE SUPPLIERS TO THE INDUSTRY

Earthmoving and Construction Plant

Cranes and Materials Handling

Compressors, Generators, Lighting and Pumps

Tools and Small Equipment

MARKETING ACTIVITY

Trade Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

INTRODUCTION

PRIVATE CONTRACTORS

Number of Firms

Table 50: Private Contractors — Number of Firms, Total Employment and Average Number of Employees per Firm by Trade (number and %), Third Quarter 2005

Table 51: Concentration in the Construction Industry — Main Trades (number of firms and %), Third Quarter 2004 and 2005

Table 52: Concentration in the Construction Industry — Specialist Trades (number of firms and %), Third Quarter 2004 and 2005

Value of Work Done

Table 53: Private Contractors — Value of Work Done by Trade and Type of Work (£m), Third Quarter 2005

Table 54: Private Contractors — Value of Work Done by Trade (£m and %), Third Quarter 2004 and 2005

7. Current Issues

LEGAL ACTION TAKEN AGAINST BREACHES OF HEALTH AND SAFETY

CONSOLIDATION IN THE INDUSTRY

TOWER-CRANE PREFERENCES

PLANT THEFT

GLOBAL SHORTAGE OF CRANES

CORPORATE ACTIVITY

8. The Global Market

LEADING PLANT-HIRE COMPANIES

Table 55: The World's Leading Plant-Hire Companies by Turnover, Number of Depots and Number of Staff (Em and number), 2005/2006 (Source: International Rental News Magazine's IRN-100 Listing)

Table 56: Europe's Leading Plant-Hire Companies by Turnover, Number of Depots and Number of Staff (Em and number), 2005/2006 (Source: International Rental News Magazine's IRN-100 Listing)

OTHER IMPORTANT COMPANIES

9. Forecasts

INTRODUCTION

The European Construction Market

Housebuilding

FORECASTS 2007 TO 2011

Table 57: The Forecast UK Market for Plant, Tool and Access Hire at Current Prices (£m), 2007-2011

MARKET GROWTH

Figure 4: The UK Market for Plant, Tool and Access Hire at Current Prices (£m), 2002-2011

10. Company Profiles

Aggreko Plc

Ainscough Crane Hire Ltd

Ashtead Plant Hire Company Ltd

Gap Group Ltd

Hss Hire Service Group Ltd

Select Plant Hire Company Ltd

Sgb Services Ltd

Speedy Hire Plc

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Improves

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Willingness to Borrow Slips Slightly

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007

SPENDING FROM SAVINGS

Slight Increase in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007

11. Further Sources

Associations

Publications

Government Sources

Other Sources

Bisnode Sources

-Aggreko Plc
-Ainscough Crane Hire Ltd
-Ashtead Plant Hire Company Ltd
-Gap Group Ltd
-Hss Hire Service Group Ltd
-Select Plant Hire Company Ltd
-Sgb Services Ltd
-Speedy Hire Plc