Tool Hire Specialists Market Report - UK Analysis

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Tool Hire Specialists Market Report - UK 2016-2020 Analysis Published: 22/11/2016 / Number of Pages: 82 / Price: 845.

1 Tool Hire Specialists Market Report - UK Analysis Published: 22/11/2016 / Number of Pages: 82 / Price: Introduction & Overview The 11th edition of the 'Tool Hire Specialists Market Report - UK Analysis'represents a comprehensive and upto-date review of the structure of the tool hire industry. Tool hire is a competitive market and comprises the three tool hire sectors of large multi-branch tool hire specialists, builders merchants and smaller independent tool hire operators. The report has a particular emphasis on the following. Key content covered: Tool hire market - size, structure, trends and forecasts up to Leading hire companies - national, regional, local, specialists and builders merchants. Analysis by product group - sector sizes, key trends etc. Products covered: Hand and power tools Access equipment Environmental control Power, welding & lighting Plumbing & pumping Gardening & landscaping Cleaning & floor preparation Concreting & compacting Miscellaneous products - including handling, decorating, compact equipment etc. Key areas of insight include: Analysis of market performance to Forecast of market performance growth prospects. Review of key market influences including non-domestic construction, housebuilding, RMI, events sector, weather, regulatory legislation, impact of Brexit referendum etc. Hire product group analysis - market sizes, influences and trends Market shares and review of major players - specialists, merchants. Detailed market data and insight on the tool hire specialists market by AMA Research, a leading UK provider of construction market intelligence. Some of the companies included:

2 A-Plant, Atterbury, Balloo Hire Centre, Banson Tool Hire, Bradford Building Supplies, Brandon Hire, Champion Hire, CW Plant, Gap Group, Grafton Group, Hewden Stuart, HSS Hire Service Group, Jewson, Lord Hire Centres, Ridgeons, Select Plant Hire, Smiths Equipment Hire, Speedy Hire, Supply UK Hire Shops, Sydenhams Hire, Travis Perkins, VP Plc. Key areas covered in the report include: The Hire Market Tool hire market - definition in terms of type of outlets and range of products. Market size - analysis by value from Market trends and major factors influencing market development (housebuilding, non-domestic construction, nonconstruction activity, events, DIY market, legislation). Market forecasts - market size, prospects and influencing factors on market for 2016 and up to forecasts of construction output, propensity to hire, impact of Brexit Referendum vote on economy and construction sector. Tool Hire Companies Overview of supply structure - competitive, mature market including hire outlets and builders merchants. Review of leading tool hire companies - nationals and large, regional operators, builders merchants - market shares, turnovers, company structure Identification of key tool hire customers - builders, plumbing & heating contractors, public sector, facilities management companies etc Total volume of outlets - multiple branch companies, builders merchants, small hire companies - mix between sectors. Share of hire market by value - multiple branch companies, builders merchants, small hire companies. Products and Suppliers Market size by major hire product group in 2015/16. Product mixes - estimated shares of main product groups within overall market and sub-sector product mixes. Product groups reviewed - definition, market size and product mix within each sector: Hand & power tools (drilling & breaking, cutting & grinding, carpentry & woodworking); access equipment; environmental control (heating, cooling & drying); power, welding & lighting; gardening & landscaping; plumbing & pumping; cleaning & floor preparation; concreting & compacting; and miscellaneous products. Key trends by product group - recent trends and factors affecting sector, growth sectors, relative importance of hire market. Identification of leading suppliers by product group Shares of tool hire companies, plant hire companies and specialists in key product sectors - relative importance of different sectors. Future Prospects

3 Forecast of market development to 2020 Positive and negative factors affecting the market - construction levels, weather, non-construction activity (manufacturing, events sector), market competition, 'hire vs buy' issue, hire rates, hire period, legislation, etc Impact on sector of Brexit Referendum vote - economy, construction, consumer confidence. Industry restructuring - overlap with other sectors/specialists, role of merchants' hire operations, rationalisation of the sector. Report Summary The UK tool hire market is a mature market estimated to have grown by 4% in 2015, with a further 3% growth expected in Tool hire is a competitive market and comprises the 3 major hire sectors - large multi-branch tool hire specialists, builders merchants, and smaller independent tool hire operators. Demand for each type of equipment varies significantly, reflecting the performance of the end-use sector requiring the equipment as well as other factors such as the propensity to hire or buy within a given sector. Tool hire is a competitive market, something which impacts on hire rates. The upturn in construction levels in 2013 and 2014 saw some hirers start to increase hire rates, though the climate has been more difficult in 2015/16. Also, some trade sources have indicated that some larger corporates have increased their tender activity recently which puts increasing pressure on pricing. In addition, to address the issue of off-hiring as soon as possible, some hirers are offering lower prices to encourage end-users to keep equipment from one job to another. In addition, other factors such as regional investment programmes, geographic, climatic and other seasonal factors all impact on demand. The UK climate has benefited the market in recent years with more extreme weather stimulating demand for products such as pumps, generators & dehumidifiers (in flooded areas) and post hole borers (high winds bringing down fences). Non construction activities stimulating demand for tool hire include manufacturing, events, gardening activities, facilities management and legislation. Key product sectors for the tool hire market are hand & power tools accounting for around a 20% share of the tool hire market, access equipment (14%), environmental control (8%), power welding & lighting (8%), plumbing & pumping (8%) and gardening & landscaping (8%). The tool hire market is dominated by large, multi-branch organisations. Leading players in the market are HSS Hire, Speedy Hire and A-Plant, with some of the leading builders merchants gaining share in recent years. A range of outlets offer tool hire including builders merchants, DIY multiples and plant hire companies. By value, multiple branch outlets are estimated to have around 75-80% share of the UK tool hire market, while they hold a lower share by number of outlets, where builders merchants have a larger share. Companies have different policies on opening and closing branches, leading to some volatility in branch networks at an individual company level. The future prospects of the tool hire market are difficult to project at this time given the state of the UK economy following the EU referendum results, and its vulnerability to events occurring in the Eurozone and global economy. Within AMA's definition, the UK tool hire specialists market is expected to experience low level growth to From 2017 onwards, all construction sub-sectors except retail are forecast to increase output which will provide opportunities in all product sectors of the tool hire market - particularly sectors such as housebuilding, offices, industrial and infrastructure. The hire versus buy issue will obviously continue to impact on the tool hire market. As the construction industry grows, these issues will continue to be assessed and it is possible that more contractors may switch back to buying their tools, rather than hiring them, in the future. Contents Listing List of Contents 1. INTRODUCTION 7

4 1.1 BACKGROUND SOURCES OF INFORMATION 7 2. SUMMARY AND FUTURE PROSPECTS SUMMARY FUTURE PROSPECTS ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS THE TOOL HIRE SPECIALISTS MARKET OVERVIEW TOOL HIRE MARKET DEFINITION MARKET STRUCTURE - PRODUCT SALES & TOOL HIRE MARKET SIZE Background and Recent Performance Future Prospects TOOL HIRE COMPANIES OVERVIEW MARKET SHARES Tool Hire Company Market Shares Hire Market - by Sector Outlet Number 35

5 5.2.3 Hire Market - by Sector Value HIRE COMPANIES National Hire Companies Major Regional Companies Plant Hire Companies Builders and Plumbers Merchants Small Independent Hire Companies Other Hire Outlets BUYING AND SPECIFICATION PROCESS Buying Groups and Trade Bodies Legislation and Training PRODUCTS OVERVIEW Product Shares of Tool Hire Sectors within Overall Construction Equipment Rental PRODUCT MIX OFFERED BY TOOL HIRE COMPANIES PRODUCT TRENDS Hand and Power Tools Access Equipment Environmental Control Small Generators, Welding & Lighting Plumbing and Pumping Gardening & Landscaping Equipment Cleaning & Floor Preparation Concreting & Compacting Miscellaneous Product Groups TOOL HIRE CUSTOMERS 76

6 7.1 INTRODUCTION BUILDERS PLUMBING AND HEATING CONTRACTORS LOCAL AUTHORITIES AND PUBLIC BODIES LARGE AND SMALL CONTRACTORS MECHANICAL AND ELECTRICAL CONTRACTORS OTHER CONTRACTORS FACTORY ENGINEERS, BUYERS AND MAINTENANCE MANAGERS CLEANING CONTRACTORS CONSUMERS EVENTS COMPANIES 81 Tables & Charts CHART 1 UK TOOL HIRE MARKET SIZE AND FORECASTS ( M) 9 TABLE 2 GDP DATA KEY CONSTITUENT ELEMENTS 14 CHART 3 INTEREST RATES AND INFLATION (CPI) FROM CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5 EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 18 CHART 6 TOOL HIRE DISTRIBUTION STRUCTURE - KEY CHANNELS 22 TABLE 7 UK TOOL HIRE MARKET AT HIRE MARKET PRICES 24 TABLE 8 UK TOOL HIRE MARKET FORECAST AT HIRE MARKET PRICES ( M) 28 CHART 9 GROWTH FORECASTS OF CONSTRUCTION SECTORS (HOUSING, EDUCATION, OFFICES, INFRASTRUCTURE, HEALTH ETC) TABLE 10 ESTIMATED MARKET SHARES OF LEADING TOOL HIRE COMPANIES BY VALUE CHART 11 SHARES OF TOTAL HIRE OUTLETS BY SECTOR (MULTIPLE BRANCH COMPANIES, BUILDERS MERCHANTS AND SMALLER HIRE COMPANIES)

7 CHART 12 SHARES OF HIRE MARKET - BY SECTOR AND VALUE - MULTIPLE BRANCH COMPANIES, BUILDERS MERCHANTS AND SMALLER HIRE COMPANIES CHART 13 BUILDERS MERCHANTS MARKET SHARES CHART 14 NUMBER AND RATE OF FATAL INJURIES TO WORKERS IN CONSTRUCTION TABLE 15 ESTIMATED SHARES BY TYPE OF HIRE COMPANY (PLANT, TOOL, SPECIALISTS) BY HIRE PRODUCT SECTORS TABLE 16 ESTIMATED HIRE PRODUCT MIX 2015 M AT HIRE MARKET VALUE 47 CHART 17 HIRE MARKET FOR HAND AND POWER TOOLS, ( M) AT HIRE MARKET VALUE 49 CHART 18 PRODUCT MIX - HIRE MARKET FOR HAND AND POWER TOOLS (DRILLING/DRIVING/BREAKING, CARPENTRY, CUTTING/GRINDING) % BY VALUE 50 CHART 19 PRODUCT MIX - HIRE MARKET FOR DRILLING & BREAKING PRODUCTS (BREAKERS,, DRILLS, ETC) % BY VALUE 51 CHART 20 PRODUCT MIX - HIRE MARKET FOR CARPENTRY & WOODWORKING PRODUCTS (SANDERS, STAPLERS, SCREWDIVERS, PLANERS ETC), % BY VALUE 52 CHART 21 PRODUCT MIX - HIRE MARKET FOR CUTTING & GRINDING PRODUCTS (DISC CUTTERS, ANGLE GRINDERS, TILE/BLOCK SPLITTERS ETC) % BY VALUE 54 CHART 22 HIRE MARKET FOR ACCESS EQUIPMENT ( M) AT HIRE MARKET VALUE 56 CHART 23 PRODUCT MIX - HIRE MARKET FOR ACCESS EQUIPMENT (ACCESS TOWERS, LIGHT POWERED ACCESS, LADDERS ETC) % BY VALUE 57 CHART 24 UK ENVIRONMENTAL CONTROL (HEATING, COOLING & DRYING PRODUCTS) HIRE MARKET, ( M) AT HIRE MARKET VALUE 59 CHART 25 PRODUCT MIX - UK HIRE MARKET FOR HEATING, DRYING & COOLING(DEHUMIDIFIERS, HEATERS, AIR CONDITIONING) 2015 AT HIRE MARKET PRICES 60 CHART 26 SMALL GENERATORS, WELDING AND LIGHTING HIRE MARKET, ( M) AT HIRE MARKET VALUE 61 CHART 27 PRODUCT MIX - HIRE MARKET FOR SMALL GENERATORS, WELDING & LIGHTING PRODUCTS % BY VALUE 62 CHART 28 UK PLUMBING & PUMPING EQUIPMENT HIRE MARKET ( M) AT HIRE MARKET VALUE 64 CHART 29 PRODUCT MIX - HIRE MARKET FOR PLUMBING & PUMPING EQUIPMENT (PUMPS, PIPE THREADERS, PIPE BENDERS, PIPE SAWS/CUTTERS, FREEZERS ETC) % BY VALUE 64

8 CHART 30 UK GARDEN & LANDSCAPING EQUIPMENT HIRE MARKET ( M) AT HIRE MARKET VALUE 66 CHART 31 PRODUCT MIX - HIRE MARKET FOR GARDEN & LANDSCAPING EQUIPMENT (CHIPPERS/SHREDDERS, HEDGE TRIMMERS, CULTIVATORS/ROTOVATORS, MOWERS, (ETC) 2015 % BY VALUE 67 CHART 32 UK CLEANING & FLOOR PREPARATION EQUIPMENT HIRE MARKET, ( M) AT HIRE MARKET VALUE 68 CHART 33 PRODUCT MIX - HIRE MARKET FOR CLEANING & FLOOR PREPARATION EQUIPMENT (WASHERS, FLOOR FINISHING, VACUUM CLEANERS, CARPET CLEANERS ETC) 2015 % BY VALUE 69 CHART 34 UK CONCRETING & COMPACTING EQUIPMENT HIRE MARKET, ( M) AT HIRE MARKET VALUE 71 CHART 35 PRODUCT MIX - HIRE MARKET FOR CONCRETING & COMPACTING EQUIPMENT (PLATE COMPACTORS & RAMMERS, SCREEDING, ROLLERS, MIXERS, FLOOR GRINDING ETC) 2015 % BY VALUE 72 TABLE 36 HIRE MARKET FOR NON-MECHANICAL PLANT - MIX BY ENVIRONMENTAL, PORTABLE ACCOMMODATION, LIFTING, SURVEYING/INSTRUMENTATION, TRAFFIC MGT ETC 2015 AT HIRE MARKET VALUE 73 TABLE 37 ENTERPRISES INVOLVED IN THE CONSTRUCTION OF BUILDINGS REGISTERED FOR VAT BY TURNOVER BAND SIZE TABLE 38 PLUMBING, HEATING AND AIR CONDITIONING INSTALLERS REGISTERED FOR VAT BY TURNOVER BAND TABLE 39 TOP 20 FM SUPPORT SERVICES COMPANIES IN THE UK 79 The 'Tool Hire Specialists Market Report - UK Analysis'costs 845+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research

9 services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on

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