Tool Hire Market Report - UK 2012-2016 AnalysisAMA ResearchMay 10, 2012 82 Pages - SKU: AJLA3914823 |
Additional Information
The UK tool hire market is estimated to be worth some £691m in 2011, reflecting relatively flat bordering on marginally positive market conditions of around 2% growth in 2011 compared to the previous year. Market performance over the last three years has been variable, though difficult to quantify, reflecting variable trends of different hire product groups and the wide range of end use sectors – including, for example, private commercial construction, housebuilding, industrial, infrastructure, and DIY/home improvements. However, in overall terms, the market has declined by around 23% from its peak in 2007.The core product sectors of the UK tool hire market include access equipment; drilling and breaking; lighting, welding and power; gardening and landscaping; plumbing and pumping; cutting and grinding, heating; cooling and drying; carpentry and woodworking; cleaning and floor preparation; concreting and compacting; also a wide range of miscellaneous products. Access equipment, estimated to be the largest product sector, accounts for around 13% of hire turnover, while lighting, welding and power; drilling and breaking; heating, cooling and drying; plumbing and pumping and gardening and landscaping equipment each account for 7-9% of hire turnover. Anecdotal evidence indicates that, while the general construction market remains flat, certain tool hire sectors are performing better than others including mini excavators, access and compact equipment. This has contributed to marginally positive market conditions in 2011.
By value, multiple branch outlets are estimated to have an 80% share of the UK tool hire market while the builders merchants sector has declined in terms of tool hire to around 15% share. However, the share of the smaller hire companies is estimated to have decreased to around 5%. In terms of the number of tool hire outlets, multiple branch outlets are estimated to have a 63% share, small hire companies account for around 9% share, and the builders merchants sector is estimated to have a 28% share.
Key factors underpinning low level, long term market growth include health and safety issues, environmental and energy efficiency legislation, also significant utility and infrastructure projects – for example, Crossrail and Amp 5 – also, in the medium to long term, relatively more positive trends in the housebuilding sector. Regional growth opportunities are likely to continue to motivate certain rental sectors, for example, road construction and repair, coastal defence work, wind turbines, the construction of the new Forth Road Bridge, etc.
Current forecasts indicate that the UK tool hire market is likely to grow very slowly through to 2016, reaching an estimated value of around £755 million.
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