Lease of life: Large-scale projects provided opportunities for firms to enter the industry

Many firms in the construction sector rent or lease equipment from the industry to minimise costs and support profit margins. The industry’s performance is strongly tied to that of the wider construction sector. A surge in housing starts boosted demand substantially prior to the start of the period in 2013-14. Since then, activity in most downstream markets has trended upwards, supported by increased government capital expenditure. Over the past five years, the housing market has been supported by government initiatives, while improvements in the commercial construction market have also supported industry growth. However, an anticipated fall in commercial construction activity is expected to slow industry revenue growth in 2019-20 to 2.5%...read more.

Industry Statistics & Market Size
Revenue
£7.1bn
Annual Growth 15-20
2.9%
Forecast Growth 20-25
Profit
Employment
47,026
Businesses
4,243

Industry Threats & Opportunities

  • Firms that can adjust stock appropriately are expected to be able to sustain profit
  • Industry operators have adjusted stock levels in order to reduce inventory and depreciation costs
  • Players with long-term contracts will benefit from the stability they provide
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of concentration, with the four largest firms estimated to account for 16.7% of industry revenue in 2019-20. Slowdown in commercial construction activity is expected to affect revenue for some operators, and cause them to lose market share. This is expected to provide opportunities for major players such as Speedy Hire and Ashtead Plant Hire to expand market share through acquisitions. Despite this, market share concentration is expected to remain low in the coming years with over 4,200 firms competing for business.The vast majority of operators only run on a small scale and rent equipment to firms operating locally. Some small firms focus on a small range of equipment serving a local area, which makes the industry highly fragmented. Thi...purchase to read more.

    Additional Insights for the Construction Equipment Rental & Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Construction Equipment Rental & Leasing Industry are

  • Economies of scale
  • Economies of scope
  • Ability to attract local support/patronage
  • IBISWorld analysts also discuss how external factors such as Demand from commercial building construction and Demand from residential building construction in the Construction Equipment Rental & Leasing industry impact industry performance..

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    What's in this report

    What is the Construction Equipment Rental & Leasing Industry?

    Firms in this industry rent and lease out construction equipment such as cranes, crane lorries, scaffolding, work platforms, bulldozers, graders and excavators. The hire of machinery or equipment with an operator is not included in the industry.

    Industry Products
  • Aerial work platforms and scaffolding
  • Earthmoving equipment
  • Pumps and generators
  • Other equipment
  • Cranes
  • Industry Activities
  • Renting and leasing out cranes and crane lorries
  • Renting and leasing out bulldozers, diggers, graders, loaders and excavators
  • Renting and leasing out scaffolding and work platforms
  • Renting and leasing out other construction equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from commercial building construction
  • Demand from residential building construction
  • Business capital expenditure
  • Government capital expenditure
  • Demand from road and motorway construction
  • Demand from water main, sewer system and related project construction

  • Current Performance
  • Construction activity
  • Expansion project
  • Building margins
  • Additional requirements
  • Chart: Revenue Growth

  • Industry Outlook
  • Subdued investment
  • Housing demand
  • Projects and borders
  • Spanner in the works
  • Employment and enterprises
  • Table: Construction Equipment Rental & Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Construction Equipment Rental & Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Building Construction
  • Residential Building Construction
  • Railway & Underground Railway Construction
  • Bridge & Tunnel Construction

  • Key Selling Industries
  • Lifting & Handling Equipment Manufacturing
  • Mining, Quarrying & Construction Machinery Manufacturing

  • Products & Services
  • Earthmoving equipment
  • Other equipment
  • Aerial work platforms and scaffolding
  • Cranes
  • Pumps and generators
  • Chart: Construction Equipment Rental & Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial construction companies
  • Residential construction businesses
  • Private contractors
  • Government
  • Industrial and manufacturing firms
  • Other
  • Chart: Major Market Segmentation for the Construction Equipment Rental & Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesIndustry operators are required to stock large amounts of machinery and equipment for leasing to downstream customers. The purchase costs involved in equipment leasing predominantly relate to the repairs and maintenance of this machinery. Purchase costs include replacement parts, oil and lubricants, fuel, protective gear, office materials and other items. A degree of competition and relatively low construction activity has pushed up the costs of most of these materials in the current year. Falling fuel prices over most of the period have provided some respite to industry operators. Purchase costs are estimated to account for 32% of industry revenue in the current year, making it the largest cost for industry operators. DepreciationDepreciation costs relate to the actual purchasing of the equipment and machinery. Machinery and equipment leased by the industry includes earthmoving equipment, work platforms, cranes, pumps and generators. Depreciation costs have increased as firms preferred to repair existing machinery, rather than purchase replacements at a higher cost. However, rising demand has meant firms have needed to keep their stock of equipment in good condition with regular upgrades to meet customer expectations. Depreciation is estimated to account for 29% of industry revenue in the current year. WagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Construction Equipment Rental & Leasing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Construction Equipment Rental & Leasing Industry

  • Industry Globalization
    Ashtead Plant Hire Company Limited, Speedy Hire plc,
  • Table: Ashtead Plant Hire Company Limited - financial performance
  • Table: Speedy Hire plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Construction Equipment Rental & Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Construction Equipment Rental & Leasing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aerial Work Platform
  • A mechanical device that provides temporary height access to otherwise inaccessible areas.
  • Grader
  • A vehicle with a long blade used to make a surface flat.
  • Pavers
  • Equipment used to lay asphalt on surfaces that require paving such as roads, bridges and tunnels.
  • Scissor Lift
  • A type of aerial work platform that moves vertically on a pantograph, or scissor mechanism, to provide height access for building and maintenance work.
  • Smart Motorway
  • A motorway section that controls traffic flow through the use of variable speed limits and hard shoulder running.
  • Tower Crane
  • A crane fixed to the ground on a concrete slab. It gives the best combination of height and lifting capacity, and is mainly used in the construction of tall buildings.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Construction Equipment Rental & Leasing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Construction Equipment Rental & Leasing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Construction Equipment Rental & Leasing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Construction Equipment Rental & Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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