Tool Hire Specialists Market Report - UK 2016-2020 Analysis Published: 22/11/2016 / Number of Pages: 82 / Price: 845.00 Introduction & Overview The 11th edition of the 'Tool Hire Specialists Market Report - UK 2016-2020 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 2020. 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 2016. Forecast of market performance 2016-2020 - 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:
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 2011-2016 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 2020 - 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
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 2016. 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 2020. 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
1.1 BACKGROUND 7 1.2 SOURCES OF INFORMATION 7 2. SUMMARY AND FUTURE PROSPECTS 9 2.1 SUMMARY 9 2.2 FUTURE PROSPECTS 10 3. ECONOMIC ENVIRONMENT 13 3.1 GDP 13 3.2 INFLATION & INTEREST RATES 15 3.3 UNEMPLOYMENT 16 3.4 HOUSEHOLD CONSUMPTION 16 3.5 HOUSING & CONSTRUCTION 17 3.6 STERLING 18 3.7 POPULATION PROFILE 18 3.8 CONCLUSIONS 19 4. THE TOOL HIRE SPECIALISTS MARKET 20 4.1 OVERVIEW 20 4.2 TOOL HIRE MARKET DEFINITION 20 4.3 MARKET STRUCTURE - PRODUCT SALES & TOOL HIRE 21 4.4 MARKET SIZE 23 4.4.1 Background and Recent Performance 23 4.4.2 Future Prospects 27 5. TOOL HIRE COMPANIES 33 5.1 OVERVIEW 33 5.2 MARKET SHARES 34 5.2.1 Tool Hire Company Market Shares 34 5.2.2 Hire Market - by Sector Outlet Number 35
5.2.3 Hire Market - by Sector Value 36 5.3 HIRE COMPANIES 37 5.3.1 National Hire Companies 37 5.3.2 Major Regional Companies 39 5.3.3 Plant Hire Companies 39 5.3.4 Builders and Plumbers Merchants 40 5.3.5 Small Independent Hire Companies 42 5.3.6 Other Hire Outlets 42 5.4 BUYING AND SPECIFICATION PROCESS 43 5.4.1 Buying Groups and Trade Bodies 43 5.4.2 Legislation and Training. 43 6. PRODUCTS 46 6.1 OVERVIEW 46 6.1.1 Product Shares of Tool Hire Sectors within Overall Construction Equipment Rental 46 6.2 PRODUCT MIX OFFERED BY TOOL HIRE COMPANIES 47 6.3 PRODUCT TRENDS 48 6.3.1 Hand and Power Tools 48 6.3.2 Access Equipment 55 6.3.3 Environmental Control 59 6.3.4 Small Generators, Welding & Lighting 61 6.3.5 Plumbing and Pumping 63 6.3.6 Gardening & Landscaping Equipment 66 6.3.7 Cleaning & Floor Preparation 68 6.3.8 Concreting & Compacting 71 6.3.9 Miscellaneous Product Groups 73 7. TOOL HIRE CUSTOMERS 76
7.1 INTRODUCTION 76 7.2 BUILDERS 76 7.3 PLUMBING AND HEATING CONTRACTORS 77 7.4 LOCAL AUTHORITIES AND PUBLIC BODIES 78 7.5 LARGE AND SMALL CONTRACTORS 78 7.6 MECHANICAL AND ELECTRICAL CONTRACTORS 79 7.7 OTHER CONTRACTORS 80 7.8 FACTORY ENGINEERS, BUYERS AND MAINTENANCE MANAGERS 80 7.9 CLEANING CONTRACTORS 80 7.10 CONSUMERS 81 7.11 EVENTS COMPANIES 81 Tables & Charts CHART 1 UK TOOL HIRE MARKET SIZE AND FORECASTS 2011-2020 ( M) 9 TABLE 2 GDP DATA - 2013-2016 - KEY CONSTITUENT ELEMENTS 14 CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 2000-2020 15 CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2020 17 TABLE 5 EXCHANGE RATE FLUCTUATIONS 2012-2018 - 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 2010-2016 AT HIRE MARKET PRICES 24 TABLE 8 UK TOOL HIRE MARKET FORECAST 2015-2020 AT HIRE MARKET PRICES ( M) 28 CHART 9 GROWTH FORECASTS OF CONSTRUCTION SECTORS (HOUSING, EDUCATION, OFFICES, INFRASTRUCTURE, HEALTH ETC) 2015-2020 29 TABLE 10 ESTIMATED MARKET SHARES OF LEADING TOOL HIRE COMPANIES BY VALUE 2015 34 CHART 11 SHARES OF TOTAL HIRE OUTLETS BY SECTOR (MULTIPLE BRANCH COMPANIES, BUILDERS MERCHANTS AND SMALLER HIRE COMPANIES) - 2015 36
CHART 12 SHARES OF HIRE MARKET - BY SECTOR AND VALUE - MULTIPLE BRANCH COMPANIES, BUILDERS MERCHANTS AND SMALLER HIRE COMPANIES - 2015 37 CHART 13 BUILDERS MERCHANTS MARKET SHARES 2014 41 CHART 14 NUMBER AND RATE OF FATAL INJURIES TO WORKERS IN CONSTRUCTION 2005-2015 44 TABLE 15 ESTIMATED SHARES BY TYPE OF HIRE COMPANY (PLANT, TOOL, SPECIALISTS) BY HIRE PRODUCT SECTORS 2015 46 TABLE 16 ESTIMATED HIRE PRODUCT MIX 2015 M AT HIRE MARKET VALUE 47 CHART 17 HIRE MARKET FOR HAND AND POWER TOOLS, 2013-2016 ( M) AT HIRE MARKET VALUE 49 CHART 18 PRODUCT MIX - HIRE MARKET FOR HAND AND POWER TOOLS (DRILLING/DRIVING/BREAKING, CARPENTRY, CUTTING/GRINDING) - 2015 % BY VALUE 50 CHART 19 PRODUCT MIX - HIRE MARKET FOR DRILLING & BREAKING PRODUCTS (BREAKERS,, DRILLS, ETC) - 2015 % BY VALUE 51 CHART 20 PRODUCT MIX - HIRE MARKET FOR CARPENTRY & WOODWORKING PRODUCTS (SANDERS, STAPLERS, SCREWDIVERS, PLANERS ETC), 2015 - % BY VALUE 52 CHART 21 PRODUCT MIX - HIRE MARKET FOR CUTTING & GRINDING PRODUCTS (DISC CUTTERS, ANGLE GRINDERS, TILE/BLOCK SPLITTERS ETC) - 2015 % BY VALUE 54 CHART 22 HIRE MARKET FOR ACCESS EQUIPMENT - 2013-2016 ( M) AT HIRE MARKET VALUE 56 CHART 23 PRODUCT MIX - HIRE MARKET FOR ACCESS EQUIPMENT (ACCESS TOWERS, LIGHT POWERED ACCESS, LADDERS ETC) - 2015 % BY VALUE 57 CHART 24 UK ENVIRONMENTAL CONTROL (HEATING, COOLING & DRYING PRODUCTS) HIRE MARKET, 2013-2016 ( 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, 2013-2016 ( M) AT HIRE MARKET VALUE 61 CHART 27 PRODUCT MIX - HIRE MARKET FOR SMALL GENERATORS, WELDING & LIGHTING PRODUCTS - 2015 % BY VALUE 62 CHART 28 UK PLUMBING & PUMPING EQUIPMENT HIRE MARKET - 2013-2016 ( 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) - 2015 % BY VALUE 64
CHART 30 UK GARDEN & LANDSCAPING EQUIPMENT HIRE MARKET- 2013-2016 ( 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, 2013-2016 ( 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, 2013-2016 ( 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 2015 76 TABLE 38 PLUMBING, HEATING AND AIR CONDITIONING INSTALLERS REGISTERED FOR VAT BY TURNOVER BAND 2015 77 TABLE 39 TOP 20 FM SUPPORT SERVICES COMPANIES IN THE UK 79 The 'Tool Hire Specialists Market Report - UK 2016-2020 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 - 150+ 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
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