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Tool Hire
Market Forecast 2007-2012 (£m)
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First published in
1996, this is the seventh edition of this report reviewing
the Tool Hire Market, a market which is continuing to experience
underlying growth.
The tool hire
market is estimated to be worth some £893 million in 2007.
Current forecasts indicate that the market is likely to continue to
grow to 2012, reaching an estimated value of around £1.1 billion.
The market
represents a key sector of the overall Construction Equipment Rental
Market consisting of plant hire, tool hire and specialist hire, with
considerable overlap in core product sectors |
The
construction equipment rental market is continually evolving, with an
underlying trend to higher levels of concentration. In addition, more
specialists are developing core product sectors, gaining market share and,
in some instances, divesting non-core operations which fall outside their
primary focus.
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; together with a wide range of miscellaneous products
The UK tool hire market
has continued to experience steady underlying growth during the
last two years reflecting high levels of government expenditure – for
example health and education – also the impact of health and
safety, energy efficiency legislation, and a continuation of the trend to
outsourcing and facilities management.
By
value, multiple branch outlets are estimated to have a 69% share
of the UK tool hire market while the builders merchants sector,
which is growing strongly, has significantly increased to around 22%
share. However, the share of the smaller hire companies is estimated
to have decreased to around 9%.
Periodic regional growth
opportunities
for tool hire, reflecting the impact of climatic factors, such as
severe flooding in 2007 provides strong motivation for many tool hire
products – for example, road repairs require mini-excavators, dumpers,
compressors, rollers, etc.
Growth prospects in the
medium term remain reasonably buoyant, though short term prospects are
uncertain and will depend on the impact on the economy of the current
global financial problems. Public sector construction and infrastructure
projects will provide good opportunities, though DIY-based hire is
forecast to suffer a downturn in he short term.
While the tool hire
market is becoming increasingly concentrated, for example Speedy’s
acquisition of Hewden’s tool hire business and Wolseley’s
acquisition of Brandon Hire, considerable scope exists in the
builders merchants sector for expansion, while core specialists continue
to expand via acquisition or product specialisation.
AMA Research’s “Tool
Hire Specialist Market UK 2008-2012” report is available in hard copy
or electronic format for £625 and can be ordered online at
www.amaresearch.co.uk
or by calling 0871 3103450.
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