UNCERTAIN ECONOMIC TIMES often favour hiring rather than buying so it is unsurprising that the reduction in UK construction equipment rental market activity in 2020 was much less than activity across construction as a whole for that year.
In addition, in 2021 there was a healthy growth across the UK construction equipment rental market. This continued throughout 2022 as built-up demand boosted the construction market.
Statistics show a 6.8% increase in market value from 2020. The recovery of the market in 2021 was aided by government stimulus to accelerate infrastructure and housing projects.
Plant hire companies dominate the market with an estimated share of 37.7% driven primarily by earth moving equipment, road construction equipment and crushing and screening equipment. The hybrid category is getting larger and almost on par with the plant hire category, accounting for 37.1. Specialists are a key category in the market, particularly for welfare equipment, ancillary equipment and cranes. This represents 22.2% of the market. The remaining 3.1% is made up of tool hire companies.
Uncertain Economic Times
Uncertain economic times are likely to weigh in favour of hiring rather than buying decisions, so it is anticipated that the construction equipment rental will be in high demand. Due to this, it is forecast that the market will grow by 5.7% in 2023.
Director of AMA Research, Laura Pardoe said, “It’s in uncertain times that the hire sector comes into its own. We can see how true this was during 2020 when the hire sector serviced emergency requirements for temporary facilities and new approaches to enable social distancing through offering welfare, accommodation, marquee, and traffic management solutions. We will see it, too, in the months to come, when economic uncertainty is likely to favour ‘hire’ over ‘buy’ decisions as contractors need to fulfil requirements in ever-changing conditions with ever-increasing costs.”
The Construction Equipment Rental Market Report – UK 2022-2026 is available from AMA Research.
The post Uncertain Economic Times Set to Favour Construction Equipment Rental Market appeared first on Roofing Today.