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More good news. 'If we could find another three machines we could hire them today,' is a fairly common statement from hire desks at the moment. Utilisation is running at an all time high and looks firm enough to continue for some time. Because of the high degree of infrastructure and road refurbishment work, wheeled machines are, for the first time creeping above the traditional 10% market share. But a caution, remember 1989, when finance houses, manufacturers and customers all wanted to do business with you. Six months into 1990, the yard was full of idle plant, the banks are baying at the door with the bailiffs and customers don't ring anymore.



360 DEG HYDRAULIC EXCAVATORS

HOW MANY

Better news and still more to come. Hire rates have peaked and troughed over the years, but taken nationally, while many insist the average is still far too low, the financial returns are at least making some sense, especially while second hand values remain high. Accountants despair at the concept of having to wait until the machine is sold after three to five years to discover whether the company has made a profit or not on the initial investment. Hire companies claim manufacturers are currently raising prices and while hire rates have definitely hardened, they are being financially squeezed. The truth, more likely, is that the current shortage is allowing dealers to be more selective. Those customers demanding above average discounts are going onto the tail of the waiting list.

UTILISATION

There could be 18,000 active all-hydraulic excavators still working in the UK and that means the hire market is still oversupplied with old machines. Including wheeled units, which still only account for 10% of the total, sales probably hit 2,000 for last year and are expected to remain at the same level for 1994. In spite of the numbers, there is currently a significant shortage of new machines and both contractors and hire companies are having to queue for machines.



ECONOMICS

TRACK RECORD

Sophistication is working to the benefit of all for once. The much maligned computer chip has proved its worth and stability on construction sites and is paying handsome dividends to users and owners. Even the most cack-handed operator has difficulty in abusing the latest generation of excavators since the computer simply overrides damaging inputs. Our CJ Field Tests prove conclusively that computers save fuel, increase productivity and, more importantly, can flash up warnings of potential trouble before it becomes a major problem. 'I can not remember the last time we had a proper old fashioned breakdown on any of our excavators,' says a plant director.