ic020531.xml

06 May 2008

Who had the idea to create GAM, and when did the company start to trade?

A group of executives had the idea of consolidating a very atomised industry. We thought that was a good business opportunity. The company began to operate as a mix of three companies that were acquired in June 2003 [The three companies were T Cabrera, Alquioviedo and Adaiturriaga.]

Where are your depots and what equipment do you rent?

We have 30 local offices – 29 in Spain and one in Portugal. In Spain we are in every single region including the Canary Island, but excluding La Rioja, Balear Island and Extremadura, where we will open in the next two years. We try to cover all our clients' needs, and we have three main business segments: construction, industrial and events. We offer everything from a compressor up to a 700 tonne crane. [GAM's fleet includes 250 mobile and crawler cranes, and company turnover last year was around €90 million.]

How is the Spanish rental market developing?

The market is constantly changing, maturing, with new national competitors. It is becoming a more professional environment, where size is beginning to be an important asset. It is still too price sensitive, but it has a great growth potential. Nowadays we rely on the construction sector. This is the most active area, and our plans are to focus on other sectors where we think we can help our clients: the industrial sector, services, events and logistics.

What are the current trends in rental rates and utilisation?

While the current rates of utilisation are good, the trend in prices is bad, with a big fall in prices – and it's a trend that has been evident for a long time. There is also a trend not to charge for services (transport, breakdowns, insurance).... That is the biggest problem in the Spanish rental sector.

Do you operate specialist rental divisions for products such as cranes, aerial platforms and power?

We are going to create specialist divisions, but not for specific products. Our divisions will be orientated to our clients by business area (construction, industrial, events).... That means if I have a client who is building a motorway, I will classify this client under our construction division, independent of which type of product he rents.

How much will you invest in new equipment this year, and what will you be buying?

During 2004 we have invested €42 million on new equipment, including compressors, aerial platforms, cranes. Our product mix follows a tendency towards bigger, more expensive and more sophisticated equipment.

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