Industry Analysis & Industry Trends
Many firms in the construction sector rent or lease equipment from the Construction Equipment Rental and Leasing industry to minimise costs and support profit margins. The faltering nature of the economic recovery weighed on construction activity and industry demand at the start of the period. A surge in housing starts boosted demand substantially in 2013-14, and revenue rose 11.8% after falling in the previous year. Since then activity in most construction sectors has increased due to improved business confidence, growing government capital expenditure and a buoyant housing market, supported by government initiatives such as the Help to Buy scheme, benefiting industry growth. Contractors have sought to minimise costs by renting and leasing equipment, rather than buying it... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Construction Equipment Rental and Leasing industry is estimated to have a low level of concentration, with the four largest firms expected to account for 16.8% of industry revenue in 2016-17. The operators with the largest presence in the industry, Speedy Hire and Ashtead Plant Hire, are only expected to generate 4.9% of total revenue each. The industry also has a very high number of enterprises, with over 4,000 firms competing. The vast majority of operators only run on a small scale and rent equipment to firms operating locally. This is illustrated by the fact that an estimated 71.5% of industry operators employ fewer than five people and just 6.8% of operators employ 20 or more people. This demonstrates the high level of fragmentation present in the industry.
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