Industry Analysis & Industry Trends
The Renting and Leasing of Cars and Light Motor Vehicles industry suffered from the downturn in the UK economy in the years through 2010-11, with a surge in subsequent years. The industry has been forced to deal with declining domestic and international tourist numbers, and weaker corporate leasing demand in some years. These factors contributed to lower vehicle leasing and rental levels, causing downward pressure on industry revenue and profitability. However, strong demand in 2011-12 from higher business vehicle leasing, and in 2012-13 due to Olympic-related demand, greatly benefitted the industry.
Industry revenue is estimated to increase at an annualised 3.9% in the five years through 2012-13, to total £12 billion... purchase to read more
Industry Report - Industry Investment Chapter
Due to the large number of cars and light vehicles required by firms operating in this industry, high capital requirements are a significant factor for the industry's cost structure. For this reason, several banks own subsidiaries that operate in the industry due to their ability to access cheaper funding sources.
Using total industry wages as a proxy for labour (forecast at 7.7% of total industry revenue in 2012-13), and industry depreciation as a proxy for capital (forecast at 32.9% of total industry revenue in 2012-13), this industry is estimated to have a labour to capital ratio of 1:4.3 in 2012-13. This means that for each £1.00 spent on labour, about £4.30 is required to be invested in capital equipment, namely vehicles... purchase to read more