20
WORLD RENTAL REPORT
IRN SEPTEMBER-OCTOBER 2013
UK
Although with a downbeat economy – only recently
out of recession – and a badly impacted construction
sector, there are rental companies in the UK still
investing and reporting improving market conditions.
London-based One Call Hire, for example, has
continued to spend heavily on its ‘high quality
rentals’ strategy. John Fitzpatrick, chairman and
shareholder of the family-owned firm, tells
IRN
that
the £34-36 million investment on fleet this year is so
that it can continue to supply “the best machines on
the market. It’s like when you renting from Hertz or
Sixt, you want a new car.
“The contractor wants to work with high quality
equipment – it looks professional – and they want
their own decals on it. It’s about health and safety
and the perception of the client. The client and the
contractor want a professional job. You can’t have
five year old equipment on site.”
The typical annual investment by the company –
which only rents equipment without operators - has
been around £15-20 million, targeted at maintaining
a young fleet, with the average age of its excavators
above 8t at around 8 months.
Low-emission models are also a key part of the
strategy, with all of the company’s 20 t excavators
now Stage IIIB, and all 13 t units to be so by the end
of the year. Mr Fitzpatrick says the sales argument is
£100/week fuel savings; “Contractors are beginning
to listen to that. It’s getting to the right people at the
top, that’s the only problem.”
The company was impacted by the recession, but
Mr Fitzpatrick says that since the Olympics in London
last year the market in the southern half of the UK,
particularly the south east, where One Call is strong,
has steadily improved. “Last year was a dip for us
– down around 8% - however, post Olympics, from
October 2012 it has steadily increased. It has bounced
back, and we foresee that there will be a gradual
increase over the next 18 months.” Company revenues
could reach around £17.5-18 million this year.
The huge Crossrail project in London is helping the
company, but also the upsurge in the housebuilding
sector; “that will go on before tapering off in 2016,
but 2014 and 2015 are still to come. We’re confident
about the market in the next 16 months, and I suspect
that we will outperform the general market.”
However, the success of One Call Hire, a company
so dependent on the southern half of the country,
also points to another feature of the UK market,
the north-south divide, with the south east of the
country and London faring better than the rest.
This is reflected also in trends in equipment use. For
example, Mr Fitzpatrick says the use of Stage IIIB
machines and the argument about lower emissions is
“totally irrelevant from the Midlands upwards.”
The UK rental market is definitely seeing improving
conditions, but not to the same extent everywhere.
■
In the UK, One call Hire is making a point of buying
Stage IIIB excavators for its hire fleet.
London-based One Call Hire says having a young fleet is central
to its strategy.
Germany’s Zeppelin Rental generated revenues of almost
€
20 million in July, a record for the business, and says the order backload
for construction work in the country would lead to increased demand in the coming months. “Construction order books are well
filled”, said Zeppelin Rental sales director Peter Schrader, “At more than
€
27 billion the construction industry has the highest
backlog since 1999. This is currently leading to a significant increase in demand and will have a positive impact in the coming months
on the rental.” Zeppelin will add 500 construction machines and 400 new aerial platforms to its fleet this year, and has plans to open
five new branches during the year.
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