Construction Equipment Rental Market Report - UK Analysis

Transcription

1 Construction Equipment Rental Market Report - UK Analysis Published: 30/08/2017 / Number of Pages: 84 / Price: Introduction and Overview The 6th edition of the 'Construction Equipment Rental Market Report - UK Analysis' incorporates original input and primary research. This updated report represents a unique, informed and up-to-date analysis of the market, including recent trends and issues that are likely to have an impact on the market going forward over the next 5 years. Key issues covered in the report include: Detailed assessment of the market - analysis of the market structure, key national companies and recent developments in the market. Forecasts of market developments up to market size and factors impacting on the market. Analysis of hire market by product group - earth-moving, lifting, skips and rubbish chutes, access equipment, hand and power tools, portable buildings and environmental, road making, primary construction equipment, etc. - market size, key influencing factors, prospects, product mix and Key suppliers. Key areas of insight include: Key trends and market influencing factors Forecasts of performance of the UK Construction Equipment Rental Market, Major equipment/machinery/suppliers by hire sector product group. Review of hire product sectors by type of hire company - e.g. Plant Hire, Tool Hire, Specialist and 'Other'. Review of major rental companies - plant hire, tool hire, specialists - key players, shares etc. Some of the companies included: AFI Uplift, Aggreko, Ainscough, Andrews Sykes, A-Plant, Brand Energy and Infrastructure Services, Biffa Waste, Brandon Hire, Briggs Equipment, Carrier Rental Systems, CRH, AB2000, Elliott Hire, Finning UK, GAP Group, Hewden Stuart, HSS Hire, Lavendon, Liebherr Rental, Mabey Hire, Portakabin, Quattro Plant, RMD Kwikform, Selwood, Skip Hire UK, Speedy Hire, VP plc, Weldex, Wernick, Hire Market

2 Market definition in terms of type of outlets, range of products and type of hire company. Market trends Factors influencing market development (levels of construction activity, infrastructure developments, legislation, events, weather, impact of hire rates & periods). Forecasts of market size up to Market prospects for hire market - impact of construction and non-construction activity, fleet regeneration & expansion. Key sectors - domestic and non-domestic construction e.g. offices, infrastructure (including transport and utilities), etc. Leading Hire Companies Market shares of major hire companies - major players, market consolidation, increasing shares through acquisitions and organic growth. Review of major hire companies - turnover, branches, areas of specialisation etc. Competitive structure - plant hire, tool hire, and specialist companies. Indicated share of channels per product - earth moving, materials handlers, cranes, skips, powered access, nonmechanical access, tools, pumps, road making, formwork/falsework/propping/shoring, piles & pile driving, tunnelling, tippers, sweepers, bowsers, generators, compressors, portable buildings, washing stations, etc. Products and Suppliers Product mix within major product groups - analysis by major sectors, share by sector, key trends, new product developments etc. Product trends by product group - growth sectors, areas of specialisation, etc. Review of hire product sectors by type of hire company - plant hire, tool hire and specialist. Major equipment/machinery suppliers by hire sector product group. Market Prospects Forecast of market development - short term prospects in 2017 and medium-term prospects up to Positive and negative factors affecting the market - performance of UK economy, housebuilding & non-domestic construction, manufacturing, waste management, warehouse capacity, etc Key construction sectors - infrastructure, entertainment & leisure, housing, etc. Impact of key projects - HS2, Hinkley Point, renewable energy programmes etc. Future developments, implications for hire companies. Report Summary The UK construction equipment rental industry is extremely competitive and relatively fragmented, and ranges 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. Some companies are more reliant on construction whereas other companies have developed more diverse markets, such as manufacturing, recycling and events. The market experienced modest growth for the period , but 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.

3 From 2015 onwards the market once again reverted to modest but steady growth levels similar to pre-2014 levels. The construction equipment rental market is extremely diverse, with equipment ranging from tools to excavators. Demand for each type of equipment varies, reflecting a combination of factors. The primary driver is the performance of the end-use sectors requiring the equipment; e.g. planers, pavers and rollers depend on the level of highway repair activity; forklift hire is influenced by the level of distribution & warehouse activity; other factors such as the weather impact on the level of hire of some types of equipment (e.g. pumping and climate control). In terms of market share by product sector, earth moving equipment represents the largest equipment sector, accounting for almost a quarter of hire value. Other key sectors include lifting, access equipment, skips & rubbish chutes, portable buildings & environmental control and hand & power tools. In terms of end use sectors infrastructure remains key, although certain parts of the infrastructure sector have performed differently in recent years, with for example the rail sector declining in recent years, whilst the utilities sector (particularly electricity) has performed well. Other key end-use sectors include housebuilding, offices, education and industrial, while major non-construction sectors include manufacturing, waste management and events. Of course, the level of hire is also dependent on companies opting to hire rather than buy. Many companies choose to hire plant and tools, generally to avoid risk - in particular capital investment risk, operating risk and legislative/compliance risk. For market trends in the construction equipment rental market, the construction industry is increasingly driven towards using environmentally sustainable products. As a consequence, many hire companies are expanding their ranges of ecofriendly equipment. Additionally, the recovery in hire demand in 2014/15 has seen many hire companies investing in fleet upgrades and expansion. Of course, individual hire companies' experiences tend to vary in terms of product sectors and regional & geographical trends. Companies in the South East, for example, are seeing higher demand from the housebuilding sector than those in the North of England / Scotland. Looking forward, the range of factors influencing the market are extensive and as such the equipment hired will be influenced by the applications required in each end-user sector as well as other more product specific issues. The biggest risk factor in the forecast will be the effect of the 'Brexit' negotiations on the levels of confidence and investment, which in turn impacts on both construction and non-construction activity. Positive influencing factors include the fact that from 2018 onwards several construction sub-sectors are forecast to increase output including infrastructure, entertainment & leisure, industrial and health, as well as housebuilding. Furthermore, additional hire demand will be achieved from non-construction sectors such as manufacturing, events and increasing warehouse capacity (to furnish the growth of Internet shopping and 'click and collect' services), etc. Also, health & safety and environmental legislation is likely to continue to impact positively on a range of hire sectors. Overall, despite concerns over potentially negative factors, such as Brexit, impacting business confidence, growth is forecast to continue at a steady rate over the period. List of Contents Contents Listing 1. INTRODUCTION BACKGROUND SOURCES OF INFORMATION 6 2. SUMMARY AND FUTURE PROSPECTS SUMMARY FUTURE PROSPECTS 9 3. ECONOMIC ENVIRONMENT GDP 11

4 3.2 INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS CONSTRUCTION EQUIPMENT RENTAL MARKET DEFINITION MARKET STRUCTURE MARKET SIZE Recent Performance Market Prospects KEY MARKET INFLUENCES Construction Non-domestic Construction Housebuilding Non-construction Legislation CONSTRUCTION EQUIPMENT RENTAL COMPANIES MARKET STRUCTURE COMPANY SHARES COMPANY PROFILES PLANT HIRE, TOOL HIRE, SPECIALIST & OTHERS BY PRODUCT SECTOR PRODUCTS PRODUCT MIX 48

5 6.2 PRODUCT TRENDS Earth Moving Equipment Lifting Plant Skips & Rubbish Chutes Access Equipment Hand and Power Tools Portable Buildings and Environmental Hire Products Pumping, Crushing and Screening Plant Road-Making Equipment Primary Construction Equipment Transport, Sweepers, Bowsers, Washing Stations Generators and Compressors Gardening and Landscaping Equipment Lighting, Welding and Small Power Cleaning and Floor Preparation Concreting and Compacting Ancillary Hire Products 82 Tables and Charts CHART 1: UK CONSTRUCTION EQUIPMENT RENTAL MARKET, ( M) 8 TABLE 2: GDP DATA KEY CONSTITUENT ELEMENTS 12 CHART 3: INTEREST RATES AND INFLATION (CPI) FROM CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5: EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16 CHART 6: CONSTRUCTION EQUIPMENT RENTAL MARKET DISTRIBUTION STRUCTURE 20 TABLE 7: UK CONSTRUCTION EQUIPMENT RENTAL MARKET AT HIRE MARKET PRICES

6 TABLE 8: NON-DOMESTIC CONSTRUCTION OUTPUT SECTOR ANALYSIS 2017 TO BY VALUE ( BILLION AT CURRENT PRICES) 27 CHART 9: CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI - CURRENT PRICES ( BN) CHART 10: NON-DOMESTIC CONSTRUCTION OUTPUT (GREAT BRITAIN)- CURRENT PRICES ( BN) CHART 11: NON-DOMESTIC CONSTRUCTION OUTPUT NEW WORK ANALYSIS BY SECTOR 2016 AND % BY VALUE GB 30 CHART 12: NON-DOMESTIC CONSTRUCTION RMI OUTPUT MIX 2012 TO BY VALUE ( BILLION AT CURRENT PRICES) 31 CHART 13: INFRASTRUCTURE OUTPUT BY SECTOR (ROADS, RAILWAYS, WATER, ELECTRICITY, ETC) BY VALUE (%) 32 CHART 14: VALUE OF ROAD & RAIL CONSTRUCTION OUTPUT ( BILLION) 33 CHART 15: UTILITIES MARKET GB CONSTRUCTION OUTPUT 2012 TO BY VALUE ( BN AT CURRENT PRICES) 34 CHART 16: HOUSEBUILDING STARTS & COMPLETIONS AND FORECASTS (UK) BY NUMBER OF DWELLINGS ('000 DWELLINGS) 35 CHART 17: HOUSEBUILDING COMPLETIONS IN ENGLAND - % MIX BY TYPE OF DWELLING (FLATS VERSUS HOUSES) TABLE 18: MARKET SHARES OF MAJOR UK CONSTRUCTION EQUIPMENT HIRE OPERATORS TABLE 19: ESTIMATED SHARES BY TYPE OF HIRE COMPANY (PLANT, TOOL, SPECIALISTS) BY HIRE PRODUCT SECTORS (EARTH MOVING, LIFTING, ACCESS ETC) TABLE 20: OVERALL CONSTRUCTION EQUIPMENT RENTAL MARKET PRODUCT MIX AT HIRE MARKET VALUE ( M) TABLE 21: HIRE MARKET FOR EARTH MOVING PRODUCTS (EXCAVATORS, LOADING SHOVELS, DUMP TRUCKS, OTHERS) AT HIRE MARKET VALUE TABLE 22: HIRE MARKET FOR LIFTING PLANT (MATERIALS HANDLING, CRANES) AT HIRE MARKET VALUE TABLE 23: HIRE MARKET FOR SKIPS & RUBBISH CHUTES AT HIRE MARKET VALUE TABLE 24: HIRE MARKET FOR ACCESS EQUIPMENT (POWERED, SCAFFOLDING, TOWERS, LADDERS ETC) AT HIRE MARKET VALUE CHART 25: UK MEWP MARKET 2015 (SCISSORS, BOOMS. TRAILER MOUNTED, VEHICLE MOUNTED ETC) - MIX BY VOLUME 58 TABLE 26: HIRE MARKET FOR HAND AND POWER TOOLS (DRILLING/BREAKING, CUTTING/GRINDING, CARPENTRY, PLUMBING, OTHERS) AT HIRE MARKET VALUE

7 TABLE 27: HIRE MARKET FOR PORTABLE BUILDINGS AND ENVIRONMENTAL AT HIRE MARKET VALUE CHART 28: PRODUCT MIX - UK HIRE MARKET FOR HEATING, DRYING & COOLING(DEHUMIDIFIERS, HEATERS, AIR CONDITIONING) 2016 AT HIRE MARKET PRICES 64 TABLE 29: HIRE MARKET FOR PUMPING, CRUSHING AND SCREENING PLANT AT HIRE MARKET VALUE TABLE 30: HIRE MARKET FOR ROAD MAKING PRODUCTS (ROLLERS, PLANERS/PAVERS, OTHERS) AT HIRE MARKET VALUE TABLE 31: HIRE MARKET FOR PRIMARY CONSTRUCTION EQUIPMENT (FORMWORK, PILES/DRIVING, TUNNELLING) AT HIRE MARKET VALUE TABLE 32: HIRE MARKET FOR TRANSPORT, SWEEPERS, BOWSERS, WASHING STATIONS AT HIRE MARKET VALUE TABLE 33: HIRE MARKET FOR GENERATORS, COMPRESSORS, ETC AT HIRE MARKET VALUE TABLE 34: HIRE MARKET FOR GARDENING AND LANDSCAPING EQUIPMENT M AT HIRE MARKET PRICES TABLE 35: HIRE MARKET FOR SMALL GENERATORS AND ASSOCIATED LIGHTING, WELDING & POWER AT HIRE MARKET VALUE TABLE 36: HIRE MARKET FOR CLEANING AND FLOOR PREPARATION (WASHERS, FLOOR FINISHING, CLEANERS ETC) AT HIRE MARKET PRICES TABLE 37: HIRE MARKET FOR CONCRETING/COMPACTING (PLATE COMPACTORS, SCREEDING, CONCRETE, ROLLERS ETC) AT HIRE MARKET PRICES 2016 ( M) 81 TABLE 38: HIRE MARKET FOR ANCILLARY HIRE PRODUCTS (LIFTING GEAR, TEMPORARY PORTABLE ACCESS, SITE EQUIPMENT ETC) AT HIRE MARKET PRICES The 'Construction Equipment Rental Market Report - UK Analysis' VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets.

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