WWW.THE-LIST.CO.UK

REPORTFINDER

Worldwide Business Information and Market Reports

Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk

Join the ReportFinder mailing list and be told of new reports

Email:

GO TO LATEST EDITION

Table of Contents

Executive Summary

Back to Renting Index and Shopping Cart

Back To REPORTFINDER home page and Search Engine

WANT TO BUY THIS? The easiest way is just to ring ReportFinder on +44 (0) 1404 891528 from 0900 to 1930 UK time and ask for Sales.Just one of a HUGE range of titles from publishers such as Aktrin, AMA Research, eMarketer, Key Note, MAPS, MBD, MSI and The Prospect Shop that you can BUY RIGHT NOW online from us. To buy or to browse further, use either of the Back To buttons below to activate our catalogue. If you would like to buy this title, you will find it in alphabetic order in the Index using the first Back To button. If you need further information, please contact us using the details at the top of this page. Please tell your colleagues if you find our site useful!

TABLE OF CONTENTS

1. INTRODUCTION 6

2. SUMMARY 8

3. ECONOMIC ENVIRONMENT 10

3.1 INTRODUCTION 10

3.2 GROWTH AND INTEREST RATES 11

3.3 BUILDING & CONSTRUCTION 11

3.4 CONCLUSION 12

4. THE TOOL HIRE MARKET 13

4.1 DEFINITION 13

4.2 MARKET STRUCTURE - PRODUCT SALES/TOOL HIRE 15

4.3 MARKET SIZE 19

5. TOOL HIRE COMPANIES 26

5.1 MARKET SHARES BY TYPE 26

5.2 MARKET SHARES 29

5.3 HIRE COMPANIES 32

5.4 BUYING AND SPECIFICATION PROCESS 42

5.5 PRICING AND REPLACEMENT CYCLES 46

6. PRODUCTS 49

6.1 PRODUCT MIX 49

6.2 PRODUCT TRENDS 53

7. TOOL HIRE CUSTOMERS 82

7.1 INTRODUCTION 82

7.2 BUILDERS 82

7.3 PLUMBERS 83

7.4 LOCAL AUTHORITIES 84

7.5 OTHER CONTRACTORS 85

7.6 MAINTENANCE OPERATIONS 85

7.7 CONSUMERS 86

8. KEY MARKET INFLUENCES 88

8.1 THE HOUSING MARKET 88

8.1 THE HOUSING MARKET 88

8.2 NON-HOUSING CONSTRUCTION 93

8.3 INDUSTRIAL SECTORS 97

8.4 GENERAL 102

9. FUTURE PROSPECTS 108

TABLES AND CHARTS

CHART 1: UK TOOL HIRE MARKET 1990-1997

CHART 2: TOOL HIRE DISTRIBUTION STRUCTURE

TABLE 3: UK TOOL HIRE MARKET AT HIRE MARKET PRICES 1990-1997

CHART 4: TOOL HIRE MARKET 1997-2002 (£M)

CHART 5: SHARES OF TOTAL HIRE OUTLETS

CHART 6: SHARES OF HIRE MARKET BY VALUE

CHART 7: MARKET SHARES OF LEADING COMPANIES BY VALUE 1997

CHART 8: MERCHANTS MARKET SHARES 1997

TABLE 9: HIRE COMPANY PRODUCT MIX 1997 £M AT HIRE MARKET VALUE

TABLE 10: HIRE MARKET FOR ACCESS EQUIPMENT AT HIRE MARKET VALUE 1997

TABLE 11: HIRE MARKET FOR BREAKING & DRILLING AT HIRE MARKET PRICES 1997 (£M)

CHART 12: UK TOOL HIRE MARKET SHARES FOR PLUMBING/PUMPING (1997 HIRE MARKET PRICES)

TABLE 13: UK TOOL HIRE MARKET FOR LIGHTING, WELDING & POWER AT HIRE MARKET PRICES 1997 (£M)

CHART 14: UK TOOL HIRE MARKET FOR CUTTING/GRINDING £M AT HIRE MARKET PRICES 1997

CHART 15: UK TOOL HIRE MARKET FOR HEATING, DRYING & COOLING 1997 HIRE MARKET PRICES

TABLE 16: HIRE MARKET FOR GARDENING AND LANDSCAPING EQUIPMENT £M AT HIRE MARKET VALUE 1997

CHART 17: UK TOOL HIRE MARKET FOR CARPENTRY & WOODWORKING 1997 HIRE MARKET PRICES

TABLE 18: UK TOOL HIRE MARKET FOR CLEANING AND FLOOR PREPARATION - £M AT HIRE MARKET PRICES 1997

CHART 19: UK TOOL HIRE MARKET CONCRETING/COMPACTING 1997 HIRE MARKET PRICES £M

TABLE 20: UK TOOL HIRE MARKET 1997 FOR MISCELLANEOUS PRODUCTS £M, AT HIRE MARKET PRICES

CHART 21: UK VAT REGISTERED PLUMBERS 1996

CHART 22: DIY CONSUMER/NON-DOMESTIC USERS FOR HIRE TOOLS & EQUIPMENT

TABLE 23: HOUSING COMPLETIONS 1988-1997 GREAT BRITAIN ('000)

TABLE 24: HOUSING STARTS 1992-1997 GREAT BRITAIN ('000)

TABLE 25: VALUE OF NEW UK HOUSING OUTPUT AND RMI OUTPUT (£M)

TABLE 26: NUMBER OF PROPERTY TRANSACTIONS IN ENGLAND AND WALES 1990-1997

TABLE 27: CONTRACTORS OUTPUT - NEW WORK AND RMI NON HOUSING - CURRENT PRICES (£M)

TABLE 28: NEW ORDERS OBTAINED BY CONTRACTORS 1990-1997 CURRENT PRICES

TABLE 29: CONTRACTORS OUTPUT - COMMERCIAL SECTOR NEW WORK - CURRENT PRICES (£M)

TABLE 30: ENGINEERING SALES OUTPUT CHANGES

TABLE 31: ENGINEERING OUTPUT BY SIC CODE £BN

TABLE 32: ENGINEERING OUTPUT BY SIC CODE £BN

CHART 33: INTEREST RATES AND INFLATION (RPI) FROM 1990-2000

CHART 34: PDI & SAVINGS RATIO

CHART 35: AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 1996 ('000)

CHART 36: NUMBER OF EMPLOYEES IN EMPLOYMENT GB - JUNE 1981-96 (MILLIONS)

Back to Top

EXECUTIVE SUMMARY

The Tool Hire Market is estimated at £610 million, based on 1997 hire and product sales prices. Adverse trading conditions were experienced during the early 1990's, followed by some improvement before market conditions stagnated in 1996. In 1997 there was the beginnings of a recovery which became more sustained towards the end of the year and in early 1998, fuelled by accelerating investment in the overall construction sector.

In terms of industry structure, the tool hire market is currently experiencing a period of rationalisation. Several major players have emerged in recent years, with market leaders such as HSS, Speedy, A-Plant, Hewden Stuart and Jewson. These companies have all expanded rapidly over the last 5 years, either through acquisition, organic growth, or a combination of the two.

The tool hire industry remains relatively fragmented with an estimated 2000 outlets in the UK. Multiple branch companies (with 4 or more outlets) account for around 45 percent of the market with Builders Merchants and small hire companies accounting for the rest.

The range of products offered by hire companies is wide, though our report excludes heavy plant, catering, portable sanitation and audio-visual equipment and specialist lifting gear. Within the general tool equipment market, access equipment is typically the largest product sector typically accounting for around 14 percent of turnover. Drilling & breaking, plumbing & pumping, and lighting, welding & power are also major product groups, each typically accounting for around 8-10 percent of hire turnover.

The range of customers for tool hire companies has expanded considerably over the past decade. While builders, plumbers and general maintenance contractors have been the traditional customer base, demand from the DIY market, local government and utilities have grown rapidly in recent years.

Privatisation, pressures on capital expenditure and the introduction of more specialised tools and equipment have increased the attraction of hire as an alternative to outright purchase, and this trend is likely to continue in the future.

Longer term prospects for the industry are generally optimistic with awareness of hire continuing to grow. Equally, the growing construction market and railway infrastructure market provide a strong customer base. New product development specifically targeted at the hire market will also strengthen the industry's position with its core customers.

Competition from heavy plant-hire operators is likely to intensify, particularly in overlapping sectors such as access, compact equipment hire, electricity generating sets and compressors etc.

This comprehensive report represents a detailed assessment of the market, reviewing major trends, key factors influencing developments and future prospects for the sector. Analysis is both quantitative and qualitative, based on our substantial experience of the building and home improvement markets.

Text © 1998 AMA Research

Back to Top

Back To REPORTFINDER HOME PAGE

Ariadne - working together with our customers to enhance productivity and increase knowledge

© 1999 www.the-list.co.uk Ariadne

Last updated by Duncan Nottage 1st February 1999