|
Since 2000,
the UK Tool Hire market has experienced a period of steady growth where
the principal driver was the repairs, maintenance and improvement ("RMI")
market supported by strong consumer demand, together with low interest
rates, lower unemployment and house price inflation. It is believed that
the RMI market will continue to drive growth in the sector along with the
expansion of government spending.
The total
market in 2003 is estimated to be worth around £750 million at hire
prices, which represents a reasonable level of growth over 2002/01.
Market
conditions have improved steadily since 2001, reflecting improvement in
the construction sector despite a deterioration in manufacturing and
difficulties in key export markets such as America, Germany and Japan.
However the September 11th terrorist attacks adversely impacted the
economy in general overall tool hire market in the last quarter of 2001
and throughout 2002, although flooding problems did benefit generator,
pump and dehumidifier hire.
In 2003,
higher government spending sustained construction growth in the face of
weakening infrastructure and private commercial/industrial sector building
output. Home owners were encouraged to improve their properties because of
rising house prices and the tool hire market benefited substantially from
this increase in spending.
Reviewing the situation mid 2004, there appears to be an improvement in
the manufacturing, IT and telecom sectors. It is therefore indicated that,
together with improving construction and sustained spending on home
improvements, growth of 4% is forecast for 2004, followed by further
growth up to around 5% in 2005.
In terms of
industry structure, the market leaders are HSS, Speedy, A-Plant, Hewden
Stuart and Brandon. These companies have expanded their networks rapidly
through acquisition, organic growth, or a combination of both. GAP Group
and Wolseley (Hire Centres), Travis Perkins, VP Plc and Jewsons also have
substantial networks.
Within our
definition, and focusing on purely tool hire, the tool hire industry is
estimated to comprise around 2500 outlets in the UK, though this is open
to substantial discussion based on the definition of specialist and
merchant branches . There has also been a significant number of new
independent branch openings as well as rapid growth of major multiple
outlets such as Speedy. In addition, HSS have expanded their UK agency
programme with independent builders merchants and decorator centres.
Multiple
branch companies (with 4 or more outlets) account for around 74% of the
market, builders merchants 12% and small hire companies 14%.
The range of
products offered by hire companies is wide. Our report excludes heavy
plant, catering, portable sanitation, space accommodation, audio-visual
equipment, event and specialist lifting gear, etc. and associated
specialist outlets. Within the general tool equipment market, access
equipment is on average the largest product sector typically accounting
for around 13% of turnover. Drilling & breaking, plumbing &
pumping, and lighting, welding & power, gardening and landscaping are
also major product groups, each accounting for around 9% of hire turnover.
The range of
customers for tool hire companies has expanded considerably over the past
decade. Whereas builders, plumbers and general maintenance contractors
have been the traditional customer base, demand from the DIY/home
improvement, local government, industry, FM contractors etc. has grown
significantly in recent years. In addition, there is a growing trend
towards 'preferred supplier' agreements often operating on a national
scale.
The growing
trend to outsourcing, or outsourcing non-core company activities to
external 'Facilities Management' companies, continues to benefit the tool
hire market, with prime areas including 'infrastructure contracting'
(especially water and sewage, and railway systems), and a wide and varied
range of asset management activities, e.g. building maintenance.
PPP/PFI
projects, including Health, Education, Home Office, Transport and Defence
are all strong growth areas for the future, with major capital investment
planned for the next 5 years. Also supporting growth prospects in the tool
hire market is the continual media coverage of more adventurous and
creative types of gardening/landscaping and home improvement.
Increasingly
demanding Health and Safety standards, environmental, emissions and
acoustic regulations tend to add value to the tool hire market. These
trends are reflected in the growth of several niche sectors, such as
materials handling, access, lifting, security, lighting, drilling etc.,
which are likely to underpin market growth in the medium term.
List of Companies Mentioned
HSS, Speedy Hire plc, A-Plant, Hewden Stuart, Jewson, VP
plc, Brandon Hire plc, Cox, Andrew Sykes, Travis Perkins, Cox Hire, Gap Group Ltd, Wolseley Hire Centres, Finning
International Inc, Lord Hire Centes, Branson Tool Hire, Coastal Tool Hire,
Parker Plant and Tool Hire, MF Hire, GEM Tol Hire, JP Hire Centres, Beaver
Tool Hire, Ermin Plant Hire, Hartley Hire, Bradford's Building Supplies,
Jacksons, Meyer International, Focus Group, Upright Genie, JLG, Manitou,
Skyjack, Pinguely, Haulotte, Titan, Clow, Youngman, Upright UK, Euro
Towers, Turner Access, Titan, Ally Tower Services, Giraffe Access Towers,
Ability International, Interlink Alloy Systems, Aliscaff, RMD Kwikform,
Mitie Generation, Zarges and Layher, Bosch, Dewalt, Makita, Universal
Drilling, Rotabroach, Alta, Hilti, Atlas Copco, Ingersoll-Rand, Hilti,
Stuart Turner, ITT, Hilta, Ingersoll Dresser, T-T Pumps, Godwin Pumps,
Arctic Products, Rothenberger UK, Freeze Master, REMS, IBP, Dolmar,
Shindaiwa, Norton Construction Products, DeWalt, Elecktra Beckum,
Hitatchi, Ryobi, Fein, Plasplugs, Kwik Split, Matholite, Marcrist, Genset, Generac, HPL, Youngman, SGB Group plc, David Barto International,
KES Power and Light, Firelight Systems, Briggs and Stratton, Lister,
Petter, Caterpillar, Cummins, F.W. Wilson, Brook Thompson, Arc
Gen, Harrington Generators, Power Equipment, Brook Thompson, Mosa,
Stephill Generators, Ebac, Andrews Sykes, Broughton, Air Trembath,
Dantherm, Broughton, De Longhi, Carrier, Heatbusters, Acna, Group
Engineering, Rapid, Aggreko, Flymo, Bosch, Honda, Black & Decker,
Tracmaster, Husqvarna/Partner, Jonsered, Stihl, Allen Power Equipment,
Metabo, Hiretech, Alto, Remington, Hilti, Kranzle, Karcher, Bredon, Checo, Dema International, Kew Cleaning Systems,
Climex, Numatic International, Marcrist, Belle Engineering, Benford,
Wacker (GB) Ltd, Svedela (UK), Ammann Equipment, Errut
International, Bomage, Norton, SPE, LGH, Tirfor, Genie
Rako Products, Mace Industries, CNH, JCB, Caterpillar, Volvo, Takeuchi,
Empteezee, Serco Group, Haden Building Services, Building and Property
Group, Jarvis, Amey, GT Railway Maintenance, Balfour Beatty.
|
