Bucking the trend against difficult economic and political circumstances, the UK’s construction equipment rental market is set to beat prerecession levels, with figures forecasted at £4.7Bn in 2019.
The ‘Construction Equipment Rental Market Report – UK 2017-2021 Analysis’ report, published by AMA Research, shows that growth in this market has been continuous since 2011, at a level of 3-4% per year.
Certain end-use sectors are driving the growth, such as hire of planers, pavers and rollers depending on the level of highway repair activity, and forklift hire on the level of distribution & warehouse activity. Other areas naturally fluctuate, with influences like the having an impact on the level of hire of pumping and climate control equipment, for example.
Housebuilding is a strong user, with demand growing as housebuilding increases. Infrastructure also remains the key end-use sector, with offices, education and industrial also bolstering the figures.
Major non-construction sectors include manufacturing, waste management and events.
Other equipment categories, earth moving equipment represents the largest sector, accounting for around 22% of equipment hire value, with lifting, access equipment, skips & rubbish chutes, portable buildings & environmental control and hand & power tools also strong.
Many companies choose to hire plant and tools, helping to avoid capital investment risks, operating risks and legislative/compliance risks, although there are numerous other benefits, such as use of the latest machinery and technology.
Construction industry trends are also leading to changing market impacts, with the drive for environmentally friendly products increasing, leading to changes in product ranges.
“From 2018 onwards, construction sub-sectors forecast to increase output include infrastructure, entertainment & leisure, industrial and health, as well as housebuilding, while sectors such as education, offices and retail are not forecast to experience growth in the short term” said Keith Taylor, Director of AMA Research. “The biggest risk factor in the forecast will be the effect of the ‘Brexit’ negotiations on the levels of business confidence and investment, which in turn will impact on the construction industry.”
The report is available now and can be ordered online at http://ift.tt/1MbtgrL
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