Plant hire rates up by 5%, says CPA

Plant hire rates have risen by 5% on average, according to the latest figures from the Construction Plant Hire Association (CPA).

The figures are seen as further evidence of an upturn in the plant hire market confirming a market report highlighted by CJ (16 March).

Even cranes - a market, which until fairly recently has been known for its 'suicidal' rates - are at last showing tentative hire rate rises. A response, the CPA claims, to improved business over the last three quarters.

A spokesman for Grayston White and Sparrow said: 'There is an upturn in crane hire and there's an opportunity to increase rates, but not everyone is taking it - there's still a degree of nervousness in the market place.'

Paul Rosevere of Bristol-based manufacturer Kato Cranes, said: 'Not only has our stock of secondhand machines dropped from 20 units to one, but our sales of new all-terrain cranes in 1995 are significantly ahead of last year.'

Activity levels, according to the CPA, remain steady for small non-operator plant, rollers, and earthmoving equipment.

Commenting on activity levels for the next three months, hirers are relatively optimistic - 69% of those questioned forecast a further upturn in business for access platforms.

Less than 10% of the 163 firms questioned expect a drop in overall plant hire activity.

But long term forecasts for plant hire remain unclear. Although Joint Forecasting Committee forecasts for industry output are showing an increase to 1996, DoE figures for new construction orders reflect a downward trend.