Plant hire rates rising

Plant hire rates and activity levels are both continuing to rise according to the latest survey from the Construction Plant Hire Association which covers May this year.

But crane performance continues to suffer and some of the non-operated plant results have proved disappointing.

CPA president Dennis Morgan said: 'Hire rates have definitely improved. It's about time. None of us could have continued with the rates as they were.

'I hope they continue to improve. Manufacturers need a return on the kit we're purchasing.

'Everybody needs a profit to survive.'

In general terms, optimism among hirers remains high, but some, according to Morgan, 'will need three years of better hire rates to repair their balance sheets'.

Out of the 159 firms participating in the survey, 59% expect increased activity in the earthmoving sector and 72% expect an upturn in activity in the hauler sector.

Against last year's figures for haulers, this represents an increase of 17 points.

Less impressive were the results for powered work platforms where 56% expect a drop in activity between May and the end of July 1994.