UK plant market will be 'fifth highest ever' in 2009

In 2009, the UK plant market will still be the fifth largest ever, according to Off-Highway Research (OHR). Its managing director David Phillips predicts the UK plant market will fall 35% this year and another 10% in 2009 to finish below 24,000 units, but points out that it will still be higher than in 2003. 

Of late, the UK has been Europe’s biggest plant market and a correction was expected, but it has been greater than predicted and Phillips expects mini excavator sales to almost halve. He said demand for bigger machines has been less affected because of a cushioning effect of big projects such as the Olympic Games.

OHR senior consultant Colin Timms said: “While manufacturers and distributors are talking about laying 20% of their people off, when you question them you find out that they have 30% more staff than four or five years ago.” He said that during the boom years UK plant buyers overbought using easy credit and many dealers now have six months’ stock at current demand levels.

He predicts specialist manufacturers that produce one or two types of machine will survive, but feels that some full liners may struggle. He also feels that crane companies may suffer: “Many have two years of forward orders with names against machines – but they are not firm orders and many will fall through.”

However, he believes many companies will continue to buy all types of machine and sell older units to ease cash flow. His big concern is that banks “turn off the tap”, in which case the downturn will be more severe and prolonged.