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particulart he difficultieso f HSS. Just a month beforeS peedy'ss tock marketd ebut,H SS acquiredU S hirerR entX;t wo monthsl ateri t was facedw ith the downturnr esultingf rom 9111. Perhapsb ecauseo f the problemso n the others ide of the Atlantic,H SS did not fufly recognise and respond to the changes in the UK tool hire market. Some of those changes were fuelled by Speedy's strategy of widening that market to embrace contractingc ompanieso f all sizes,w hile HSS continuedd own its D|Y/smallt radesmen path. HSS was constrainedb y its propertyp ortfoliow, hich was largelyb ased on a high streetp resence,w here increasinglyc ongesteda ccess,l imited/nonexistenpta rking availabilitya nd not infrequentlyh igh rents,a ll addedt o the problems.S ince the Management Buy-ln at HSS at the end of 2003, these problems have been gradually addressedw ith the companym akingr adicalc hangesa nd reorganisingit s property portfolioi nto a 'hub and spoke's tructure.2 006 saw the reversalo f the losseso f recent years and the numbert wo playeri n the tool hire marketn ow lookst o have establisheda more robust platform from which it can mount a recovery. The future for Hewden as the third largest player in UK tool hire remains uncertain; the protracted period during which the company'st ool hire operationsh ave been 'for sale'will not have improvedt he confidence of customers or staff; it seems likely that its share of the market will have declinedb ut untilw e knoww ho, if anyone,w ill buy it, it is difficult o commento n its prospects or the effect its sale might have, although any sale will almost certainly mark a furthers ignificantr ationalisatiomn ove in the sector.M eanwhile,a s we pointedo ut in our Page 66 openingp aragraphH ewdenh as now losti ts overalll eadershipo f the UK hrrel narkett o Speedy;F inningsf'i rstq uarterr eportf or 2007a lso indicatesth at Hewdens aw a slightf all in rentalr evenuesin the period. The saleo f Hewden'sto olh ireo perationsi,f it occurs,w ouldc omeo nlya year aftert he BrandonAlVolseleHyi reC entersm erger.S o far there is fittlee videnceo f what impactt hat has had on the overallm arket.T wo otheri mportanpt layers- Vp/HireS tationa nd A-Plant have recoveredw ell from difficultieso f recenty ears.O veralli t is fairt o assesst he health of most of Speedy'sm ajorc ompetitorsa s improvinga gainsta favourablee conomic backgroundS. o, perhapst,i mesc ouldb e a littlem orec hallengingfo r Speedyo n the tool hiref ront.O n the otherh anda ll the majorp layersc an expectb enefitf romt he continuing buoyancy of their customer base. Economic Outlook Forecastersa re expectingc onstructiono utputt o rises ome 2.7% and the growthr ate to acceleratef urtheri n 2008 and 2009.T he quarterp ercentagein creasei n interestr atesi n May,w hich putsr atesa t theirh ighestl evelf or six years,h as not givenr iset o concern,i n |