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Researchp ublishedb y Key Notef orecastst hat growthi n the planth ire sectorw ill be between 5 and 8%in the short term. Growth rates forthe tool hire market are not expected to be as strong, with Key Note forecasting a growth rate of between 3 and 4o/o in line with the growth in construction. Diagram 4: Construction Spending % Change Source: Speedy Hire E 4 3 ? I CI -1 :? -3 -4 2ff05 toos; 2oo7F 2008F 2009F 'itiuP.rr,lrb licS ectgri ncl. PFI I nrivate Sector Source: CPA. Wi*tsy 2006tr0? E"Estitnate F-Forecast Page 12 SWOT Analysis of the Plant and Tool Hire Sector STRENGTHS . Customersp refert o rente xpensivep lanti temsr athert han buy them,a s a meanso f reduongc aprtal expenditure . Many plant and tool hire items are speciflc to certain applications Without the plant and tool hrre rndustry. customersw ould havet o buy a wide rangeo f infrequentlyu sed plant . Hiringp lantr athert han buyingi t allowsc ustomerst o use the lateste quipment . The constructione quipmentr entalm arketi s continuallye volving,w rtha n underlyrngtr endt o hrgherl everls of concentration . The marketh as experienceds teadyu nderlyingg rowthd uringt he lastf ew years,r eflectingh rghl evelso f governmente xpenditure(e .9.h ealtha nd safetya nd energye fficiencyle gislatrona)n d a continuatrono f the trendt o outsourcinga nd facilitiesm anagement . Customersw ho purchaset heiro wn toolsh avet o carryo ut regularm aintenanceto ensuret he toolsa fe In good condition;in addition,t hey have to storet hem when they mightn ot have the space,a rrds toret herrr securely . Hiringt ools allowsc ustomerst o use the very lateste quipment . Many smallerc ustomerss, uch as localh ouseb uildersa nd DIY enthusiastsc, annota ffordt o buy modern tools,e speciallyif thesea re usedo n an infrequenbt asis WEAKNESSES . The very high levelo f marketp enetrationw ithint he UK limitso verallg roMh of the planth ire sector, expansionh appensm ainlyt hrougha cquisitiono f otherp lanth irec ompanres . Recessioni n the constructionin dustrym akesd isposalo f planth ire itemsd ifficult . The planth ire sectori s very dependento n the constructionin dustry,w hich is very cyclical . Reductioni n governmentf undedp rojectsc an lead to contractionin the constructronin dustry . Economic slowdown can reduce the quantity of tools hired by customers who have to cut back on therr hiring budgets or DIY projects . There is strongc ompetitionin the UK tool hirem arket,a nd customersw ho use the rnternect an compare prices easily for the best deals . General lyg roMh in individual toohli rec ompaniesrs o nlyp ossrbleb y openingn ew branchesu sual lyr r r areas where there is existing competition . The DIY-based hire market is forecast to suffer a downturn |
