The UK plant hire market is estimated to be worth some £2,220m in 2011, reflecting relatively flat bordering on marginally positive market conditions of around 1-2% 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, and infrastructure. However, in overall terms, the market has declined by around 25% from its peak in 2007.

Anecdotal evidence indicates that while the general construction market remains flat, certain plant hire sectors are performing better than others including excavators, powered access and telehandlers reflecting a wider range of hire opportunities in the housebuilding and events sector. This has contributed to flat or marginally positive market conditions at best in 2011. The market continues to remain relatively fragmented due to the high number of specialist operators with different competitors in different hire product sectors.

Earth moving equipment, estimated to be the largest product sector, accounts for around 37% of hire turnover, while lifting accounts for around 36%, pumping, crushing and screening plant 7%, road making 6%, compressor/generating sets 5%, and others/non-mechanical 9%.

Positive niche sector construction influences include life extension projects for the ageing power generation asset base while nuclear power station decommissioning projects provide hire opportunities in the short, medium and long term. Uncertainty in the plant hire industry caused by the cancellation or deferment of construction projects continues to impact negatively on plant hire companies in the UK.  Anecdotal evidence suggests that the regular supply of plant components and equipment has been adversely impacted by the effects of the Japanese earthquake and tsunami. Rising fuel and energy costs are likely to impact on hire companies margins, to some extent. In addition, anecdotal evidence indicates that rising equipment prices are prompting increases in hire rates which will also tend to add some value to the market.

Regional growth opportunities are likely to continue to motivate certain rental sectors, for example, new road construction, coastal defence work, wind turbines, the construction of the new Forth Road Bridge, etc. Levels of future growth in the plant hire sector are likely to be underpinned by major construction projects, including Crossrail, with the associated over-site developments, also the Thames Gateway Project, etc.

Current forecasts indicate that the UK construction equipment rental market is likely to grow very slowly through to 2016, reaching an estimated value of around £2.4 billion. 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 relatively more positive trends in the housebuilding sector. If confirmed, investment of over £100bn in electricity generation by 2025 (National Policy Statement on Energy) will provide significant long term motivation for the UK plant hire industry. Long term infrastructure investment, reported in the 2011 Autumn Budget Statement, includes around 500 projects worth over £250m over the period 2011-2015. Key areas for investment are indicated to be transport, and energy, which is likely to provide significant medium to long term opportunities for plant hire.