Hire market to fall for two years

The UK's construction equipment rental will decline by an estimated 12% by the end of 2010, according to the latest survey from AMA Research.

It estimates the UK's construction equipment rental market in 2008 dropped 6% to £4.4bn due to the negative impact of the global financial crisis and downturn in private residential and some non-residential construction sectors, taking it back to the 2006 level. However, it said that while postponements, cancellations and abandonments of projects have badly effected the market, the hire industry's penetration has grown with the introduction of multi-functional equipment and health and safety legislation.

While emphasising the volatility of the market makes forcasting difficult, AMA predicts the falls in 2009/10 will be followed with a flat 2011, with an upturn starting in 2012.

It found earthmoving equipment accounted for around 24% of hire turnover, lifting 14%, skips and rubbish chutes around 12%, road making 4% andcompressors/generators 4%. The full report Construction Equipment Rental Market - UK 2009-2013 is available at www.amaresearch.co.uk.