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; also a wide range of miscellaneous
products. The UK tool hire market is estimated to be worth some
£710 million in 2009 – representing a significant decline of
around 20% over the 2008-09 period. Market decline over the last 2
years has been significant and difficult to estimate,
reflecting the variable performances of different product groups
and the wide range of end use markets – DIY / professional,
private / public sector works etc.
By value,
multiple branch outlets are estimated to have a 70% share of the
UK tool hire market while the builders merchants sector, which
continues to grow strongly, has significantly increased to around
24% share. However, the share of the smaller hire companies is
estimated to have decreased to around 6%. Regional opportunities
for tool hire, reflecting the positive impact of climatic factors,
for example the late 2009 flooding in Cumbria and the subsequent
drying out operation, provide some additional short to medium term
motivation for local tool hire companies – but the overall trend
has been strongly negative.
The leading players in the UK
tool hire market include Speedy Hire, HSS, A-Plant GAP Group, VP
Plc, Wolseley (Brandon Hire), Travis Perkins, and Jewson, with
Hirebase, Lord Hire, Sydenham Hire Centres, and several other
companies. In terms of the number of tool hire outlets,
multiple branch outlets are estimated to have a 53% share, small
hire companies account for around 11% share, and the builders
merchants sector, which is demonstrating strong growth is
estimated to have a 36% share.
The prospects for the UK economy
in 2010 are still relatively pessimistic although sustained
investment in health, education and infrastructure spending should
help underpin construction activity 2010-2011. Current forecasts
indicate that the UK tool hire market is likely to experience
further decline in 2010 with only marginal recovery in 2011-12
before reaching an estimated value of around £745m in
2014.
It is forecast that the tool
hire market will increasingly polarise into two distinct
market sectors comprising tool hire specialists, and
builders merchants tool hire, each addressing distinct, but
overlapping customer and service sectors. For example, it is
likely that specialists will tend to focus on supply
agreements and specialists hire, while builders
merchants may tend to concentrate on developing their prime
customer base for the supply of building products.
