SUMMARY OF REPORT CONTENTS

Worth some £268 million at manufacturers sales prices in 2005, the UK Access Equipment Market is experiencing positive growth with the market demonstrating positive growth between 1996 - 99, followed by a relatively flat period up to 2003 with  a resumption of more positive demand 2004-2006, which should be sustained into 2007-09. This reflects, in particular, the impact of the dominant mobile platform sector, initially stimulated by expanding rental demand.

During 1999-2003, the access equipment market was adversely affected by a downturn in demand in mobile platforms, due to excessive fleet building by new entrants to the rental sector during 1997 and 1998. This culminated in a period of restructuring in the rental sector in 2003-2004, followed by an minor improvement in demand 2004-2005, driven largely by fleet refreshment programmes and Health and Safety Legislation.

Through 2005 to mid 2006, the mobile platform sector continues to experience positive growth reflecting substantial levels of  niche sector activity in the construction market in addition to on-going motivation from increasingly stringent health and safety regulations, for example, ‘Work at Height Regulations 2005’ and revised Building Regulations L2, also the Asbestos Regulations, etc.

Factors contributing to the long term development of the overall Access Equipment market include productivity innovations and niche sector growth opportunities – for example steel frame buildings and prefabrication, lighting, CCTV, cladding, and security protection and detection. 

Mobile Elevating Work Platforms (MEWPs) are estimated to have the largest share of the market at 47%, with sales in 2005 of around £125m.  Emphasis on safety when working at height and marketing of a wider range of powered access products for increased productivity in specific applications has tended to stimulate demand in this sector which according to authoritative sources is ‘on the upswing’.  However, it is unlikely that the excessive fleet building of 1998-1999 will be repeated, bearing in mind the subsequent restructuring and rationalisation which occurred, and appraisal of finance packages, etc.

Historically, ladders and scaffolding represent the ‘traditional’  sectors of the access market accounting for shares of 19% and 17% respectively.  Ladder sales have been relatively stable with marginal growth forecast for the long term, reflecting the impact of ‘Working at Height’ Regulations, also a marginally higher replacement rate, and the selective substitution of low level access products. However, the legislation will also prohibit informal, makeshift and hazardous temporary access arrangements and is likely to prompt consideration of ladders, for certain access situations, dependant on the outcome of the mandatory risk assessments, etc.

The Scaffolding sector is forecast to demonstrate marginal long term growth with system scaffolding continuing to gain share.  System scaffolding increases productivity during assembling and dismantling, with improved safety, and continues to gain share with several innovative products on the market.

The balance of the access equipment market comprises access towers, suspended access systems and mast climbers, with combined annual sales of almost £50m in 2005.  The podium steps and low level platform sector of the access tower market is forecast to grow strongly in the short to medium term. Primarily driven by the ‘Work at Height Regulations 2005’.  However, mast climbers and suspended access are envisaged to experience relatively marginal growth in the short term, with potential for development in the long term dependent upon trends in commercial construction etc.

The principal suppliers include SGB Group Plc, the access equipment division of Harsco, also Youngman Group, having acquired SGB Youngman.  In addition, Generation UK, Turner Access, Layher, and Zarges are significant players in non-mechanical access.  The leading suppliers in the MEWPs sector are JLG, Genie, and Haulotte, with Tanfield group becoming an increasingly significant player in the market following the acquisition of Aerial Access and Upright International’s powered access operation in 2006. Most of the major suppliers in the powered access sector have manufacturing plants in America, Europe, or both regions, with, for example Tanfield Group and Niftylift having UK manufacturing operations.

Distribution of Access Equipment is dominated by direct sales to end users and hire companies, with companies utilising both channels, (including the internet).  Hire operators comprise plant hire, tool hire and specialist MEWP companies such as Loxam, AFI, Nationwide Access and Universal.  Certain large plant and tool hire companies have established large fleet holdings - for example Hewden, A-Plant and HSS.  Plant and tool hire companies also offer ladders, towers, and scaffolding for hire or sale whilst builders merchants, DIY multiples and independents have varying levels of involvement with non-mechanical access products.

The principal driving factors for sustained growth in the access equipment market include Health and Safety Legislation – in particular the ‘Work at Height Regulations 2005’ – and the achievement of higher levels of productivity.  The ‘Work at Height Regulations 2005’ have in general terms resulted in some transference of share from ladders to low level access or mobile platforms while ladders will in turn benefit from stricter inspection and ladder replacement regimes, also some ‘value added’ arising from material price increases.

The significance of productivity improvements is particularly pronounced in the construction industry where there are skills shortages and where it is difficult to recruit, train and retain key personnel. In addition, the whole proposition for major turnkey projects such as retail centres, supermarkets and hotels is geared to minimising the delay to the revenue stream.

In the public sector, healthcare, education and infrastructure will all offer good opportunities for access equipment manufacturers and hire operations.  In addition, the 2012 Olympics construction programme will be a particular bonus to suppliers as the required facilities are developed from 2007 onwards.

Given the sound state of the UK economy and improving levels of activity in industrial maintenance, construction, and infrastructure, future prospects for Access Equipment tend to depend upon the identification of additional end use sectors where productivity and safety can be significantly improved, with motivation all round from the ‘Work at Height Regulations 2005’ also increasing legislative activity, resulting in forecast market rates of growth of around 4-7% in 2006-2009.

List of Companies Mentioned

Merlo, JLG, Manitou, Saint Gobain, Travis Perkins, Wolseley, SGB Youngman, Abru, Beldray, Titan, Ladder and Fencing Industries, Lyte, Clow, Zarges, RMD, Kwikform, Layher, R Haydock, Interlink Alloy Systems, Mitie Generation, Initia, Deborah Services, Palmers, Thssen Hunnebeck, Harsco Corporation, Boulton, Scafform, The Turner Group, Turner Plus Eight, SGB Youngman, Upright UK, Eurotowers, Top Tower, SGB Scafform, Mast, Climbers, Alto Tower Systems Ltd, Giraffe Access Towers, Interlink Alloy Systems, Aliscaff, Hewden Stuart, Genie United Kingdom, JLG, Industries (Europe), Grove, Manitowoc, Company, Liftlux, W R Carpenter, Textron Omniquip, Manitou BF, King Trailers Ltd, Ateco Access Platforms, Denka Lift A/S, Pinguely Haulotte, Niftylift, Thwaites, Priestman Equipment, Syltone UK, Bronto Skylift, Versalift Distributors UK, Standard Lift, Track Technologies, CTE UK, Cradle Runways International, Façade Hoists Group, Cradlecraft Engineering, Suspended Access Systems, Craig Engineering Suspended Access Systems, Atrium Gantrys, Cento Engineering, Alimak AB, Stavdal Group, Mast Climbers, Hadan Building Services, GT Railway Maintenance, Balfour Beatty, Network Rail, The Platform Company, EPL Access, Hewden Instant Access, A-Plant Powered Access, Finning International Inc, Andrews Sykes, Balwins Industrial Services, Ainscough Group, Aggreko plc, Longville Group, Selwood Group, GE Capital Equipment Services, Vibroplant, HSS Hire Service Group plc, Brandon Hire plc, Meyer International, MEC, Zwiehoff, Keeklamp, Martin Access, Worscaff, Bow Scaffolding, Jumbo Stillards, Wumag, Oil and Steel UK, Facelift, Uniq Extrusions, UK Platforms, Independent Access Supplies, GAP, Grafton, BSS, Leekes, Trago Mills, Bradfords, Wolfe Design, Band Q, Focus, Wickes, Cox Hire, Universal, Tractel, Intervect, Haki, Maber, Fraco, Interserve, Nationwide Access, Snorkel, Skyjack.