Hire Industry Overview
The general equipment hire market in which Coates Hire competes is estimated to generate approximately $3.5 billion in revenue per annum. The types of equipment for hire in this market include compaction equipment, access equipment, portable accommodation units, portable toilets, storage containers, generators, lighting towers, air compressors, welders, pumps, skid steer loaders, forklifts, cranes, bulldozers, excavators and graders. This market does not include the hire of cars and trucks.
The hirers of general equipment in Australia can be classified into two primary customer groups. The first group consists mainly of large private enterprises and government bodies that hire an extensive range of equipment on a regular basis. The second group consists of smaller customers that use a relatively limited range of equipment on a less regular basis.
The market segments serviced by hire companies include building and engineering construction, government departments, industrial, mining & resources, manufacturing, maintenance, special events, and home handyman markets.
Factors influencing the general equipment hire market in Australia include:
- The level of economic activity, including non dwelling building, infrastructure and resources development;
- The continuing trend among corporations and government bodies to outsource non-core business functions; and customers moving to a combination of rental and purchase to meet variable equipment needs, with a push to outsourcing capital equipment rather than purchasing.
- The development of specialised markets and products is contributing to the growth of the hire industry in Australia.
- The penetration and diversity of hire's involvement in Australian industry tends to have an insulating effect against seasonal and cyclical market movements.