UK tool hire market to see modest growth
By Murray Pollok21 June 2012
The UK tool hire market will see only very modest growth up to 2016, according to the latest report by AMA Research, with total sector revenues growing from £700 million in 2011 to around £755 million by 2016, equivalent to compound annual growth of around 1.5%.
AMA said the actual growth in the sector depended heavily on how the housebuilding and RMI (repair maintenance and improvement) markets performed, as well as the underlying economy.
The UK's tool hire sector is very mature and dominated by national players including as Speedy Hire, Hire Station, TP Hire and Brandon Hire, who AMA estimates account for 80% of the total market.
AMA said the market value in 2011 of £700 million reflected growth of between 1 and 2%, with the market down 23% since the peak in 2007.
"Market performance over the last three years has been volatile, reflecting variable trends of different hire product groups and the wide range of end use sectors," said AMA.
AMA said access equipment was the largest product sector, accounting for around 13% of tool hire revenues, followed by lighting, welding and power; drilling and breaking; heating, cooling and drying; plumbing and pumping; and gardening and landscaping equipment, each accounting for 7-9% of hire turnover.
AMA said anecdotal evidence indicated that the best performing hire sectors in 2011 were mini excavators, access and compact, all of which contributed to the growth in 2011.
The report, Tool Hire Specialists Market Report - UK 2012-2016 Analysis, is available in hard copy or electronic format for £675.