UK tool hire market relying heavily on the fortunes of the construction industry

The UK tool hire market has been forecast to experience very modest growth up to 2016, with total sector revenues predicted to increase at a compound annual growth rate (CAGR) of 1.5% over the next four years, increasing from a valuation of £700 million in 2011, to hit a market value of £755 million by 2016.

The downturn of the construction industry in 2009 meant that many tool hire companies were forced to reduce headcount levels and fleet sizes to match lower revenues. However, some companies have successfully managed to increase revenues from opportunities offered by infrastructure projects, sectors other than construction and overseas markets.

Actual growth in the sector depends heavily on how the house building and RMI (repair maintenance and improvement) markets perform, as well as the underlying economy.

The UK's tool hire sector is very mature and dominated by national players including as Speedy Hire, Hire Station, TP Hire and Brandon Hire, who AMA estimates account for 80% of the total market.

The core product sectors of the UK tool hire market include access equipment; drilling and breaking; lighting, welding and power; gardening and landscaping; plumbing and pumping; cutting and grinding, heating; cooling and drying; carpentry and woodworking; cleaning and floor preparation; concreting and compacting; along with a wide range of miscellaneous products.

The access equipment sector represented the largest product segment of the UK tool hire market, accounting for approximately 13% of tool hire revenues, followed by lighting, welding and power; drilling and breaking; heating, cooling and drying; plumbing and pumping; and gardening and landscaping equipment, each accounting for 7-9% of hire turnover.

Despite growth being projected for the private construction sector, output is anticipated to remain below levels seen prior to the downturn.

For more information on the UK tool hire market, see the latest research: UK Tool Hire Market

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