2010 recovery for UK tool rental
By Patrick Hill05 November 2008
Demand for tools and equipment rental in the UK will recover in 2010, according to a report by research company MTW Research. The company said the rental industry is likely to increase spending on tools and equipment in 2010 to meet a rise in demand later in the year and continuing into 2011.
Current rental industry efforts to reduce costs and improve efficiencies should position it for a "faster return to profitability growth than many other sectors in the construction industry," said MTW. It forecast that the rental industry will be "in a strong financial position" by early 2010 to raise capital and increase spending.
MTW's analysis finds that almost 25% of tool hire companies are "at risk". It said that public sector spending is "crucial...for preventing further substantial declines in volume and value." Also, contractors less willing or able to buy will rent more, which will help sustain the market over the next one to two years.
Looking at the short-term, MTW predicted that tool purchases will decline 25% during 2009. One effect of the "more difficult trading period during the next 12 - 18 months" will be to make tool manufacturers more price competitive.
The report reviews the tool rental market, describes current market trends, ranks hire companies and presents sales estimates. It is available for sale prced from £375 at the company's web site.