SUMMARY OF REPORT CONTENTS

In overall terms, the solid performance of the UK economy has imparted a degree of stability to many plant hire sectors. While the year 2000 received a level of motivation from the programme of Millennium projects, 2001/2 demonstrated a significant slowdown in GDP, with depressed market conditions in the IT and manufacturing sectors.  Although construction output expanded in 2002- 2003, the plant hire market grew marginally, with overcapacity and low hire rates in certain sectors, in particular mobile elevating work platforms.

From 2003-2005, higher government spending sustained construction growth, although the manufacturing and industrial sector remained relatively stable. As a result, the plant hire market experienced more positive conditions in 2005, with underlying demand from niche sector construction growth, waste management operations and legislation, in particular the ‘Work at Height Regulations 2005’.

The largest sector of the plant hire market is earth-moving equipment, estimated to account for 45% of the overall market.  Lifting equipment, including material handlers, cranes and powered access accounts for an estimated 29%, while general construction, road making, compressors and generators, each account for around 5 -7% of the overall hire market value.  Portable accommodation hire is demonstrating strong growth while powered access, excavators and telehandlers are also growing significantly.

Adverse influences impacting on the plant hire market include skills shortages, in particular drivers and fitters, the rising cost of health and safety compliances (which are particularly exacting in the road/ rail sector), and also rising fuel and energy costs.  In addition, tool hire companies are progressively developing traditional plant hire sectors, for example ‘compact’ plant represents an entry route into excavators and telehandlers etc.

Plant hire still remains relatively fragmented, despite continuing industry concentration. Hewden /Finning are the market leaders with an estimated 15% share, followed by Ainscough, A-Plant, and Hydrex, with shares of 3%, and Lavendon,  Aggreko, Andrews Sykes, Longville Group and Speedy Equipment Hire with around 2% share. It should be added that Hydrex, who have achieved high sustained annual growth rates, are regarded as a major player in the UK plant hire market, while Speedy, market leaders in the UK tool hire market, are developing rapidly in ‘equipment hire’, and have also become a major player.

There are estimated to be around 2000 – 2500 plant hire outlets in the UK with a primary focus on the core plant hire product sectors previously indicated.  Product development includes innovative equipment designed to increase productivity– for example, JLG’s ‘Tow-Pro’ trailer mount with integrated services.  The contribution to profitability of higher levels of productivity is also indicated in the further extension of the ‘tool carrier’ concept, also ‘compact’ plant, and hydraulic fork-to-shovel changing systems, etc.

Long term prospects for the plant hire industry are viewed as positive, driven by legislative trends and niche sector construction growth, for example steel frame buildings and prefabrication, with more specialist sectors including the clean-up of nuclear sites.  In overall terms, our forecast is for annual growth rates of 4-6% for the plant hire market from 2006-2009, though there will be significant regional variations reflecting the influences of location of the extractive industries, waste management operations, the petro chemical industries, housebuilding projects,  renewables, seasonal/ climate factors, and the periodic impact of entertainments and events etc..

List of Companies Mentioned

Finning International Inc, Hewden Stuart Plc, Finning International Inc, P.C. Harrington., Maxxiom, A-Plant (Ashtead), Ainscough Group, Andrews Sykes, Baldwins Industrial Services, Loadtite, Phillips Crane and Rigging, Baldwins, Industrial Services Inc, Aggreko Plc, Longville Group, Gap Group Ltd, Hydrex Group, AMPL, Pochin's Plc, Putzmeister's, GE Capital Equipment Services, GE Energy Rentals, Dudley Vale, Selwood Group, Jarvie Plant, Clive Barford, H.E. Services, Alpha Plant, Ascus, LCH Generators, BCL Rail Services, BCL Plant Hire., Philmor Rail, Nationwide Access, Skylift (Nationwide), Loxam, Universal Aerial Work Platforms, SGB, EPL Access, Aerials for Industry, Independent Access Supplies, Lex Harvey, SGB Group, Harsco Corporation, SGB Scafform, Mast climbers, The Turner Group, Turner Access, Upright, Aerial, Elliott Hire, Caledonian Safemaker, Hydrainer, Weldex, BP's System Vanellus, Global Telematics, Sennebogen, New Holland Construction's, Alpha Plant's, Caterpillar, Terex, Case, JCB, Volvo, Bell Equipment, Greyhound Plant Services, JCB, Thwaites, Hydrema, Ace Plant, McCormick, Harsco Track Technologies, Liebherr, Hitachi, Daewoo, Komatsu, Philmor Rail, Basket, Niftylift, Hydrex, Rail Services, Story Rail, Case, Daewoo, Caterpillar, Hitachi, Marubeni-Komatsu, Liebherr, Orenstein, Koppel, Kubota, Hyundai, Hydrema, Schaeff, (Terex), Moxy, Terex, Bobcat, Barford Construction, Benford, Bell Equipment, Thwaites, Takeuchi, Finning, Lex Harvey, Hyster, Linde, Hewden Stuart, UK Forks, Keybemo's, Ainscough, Liebherr, Manitowoc, Grove, Terex, Vanson Cranes, Kobelco, Sparrow Crane Hire, SLD/Longville, Andrews Sykes, Selwood, Hydrainer, Putzmeister, Ultranazz, Schwing, Liebherr, Godwin, Grindex, ITT Flygt, Ingersoll, Dresser, KSB, Powersceen, BL Pegson,Finlay, Hydrascreens, Metso Minerals, Bomag, Metso Minerals, Benford, Barford International, Hamm, Caterpillar, Metso Minerals, Wacker, Errut, Rammax, Ammann, Genie Industries, Generator, Power/SGB Rovacabin's, Atlas Copco, Compare, Ingersoll-Rand, Kaesar, F G Wilson Engineering, Caterpillar, TT Group, Cummins, Lister Petter, Brook Thompson, Genset, SIP, SDMO, Portakabin, Rollalong, Rovacabin, S. Wernick, Terrapin, Britspace, Wraith Accommodation, R.B. Farquhar, Garick, Caledonian Safemaker, De Longhi, Andrews Sykes, Carrier, Heatbusters, Acna, Youngman.