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OPPORTUNITIES . With more companiess eekingt o outsourcee quipment,p lanth rrec ompaniesc an gain stabilrtyb y introducing long term contracts . Large planta nd tool hirec ompaniesw ith nationalc overagec an affordn ationala dvertisingc ampaigns,t hris attracting more customers . lmprovementsin lT systemsa nd communicationsb etweenp lanth ire operatorsa nd a centrafisedp lanth ire location would greatly improve customer service . As large consumers of plant equipment, plant hire companies are in a better position generally to negotiate good prices for buying plant . PublicS ectorF inancea nd government-fundeidn itiativesp rovideo pportunitiesfo r big constructionp rojects such as buildingh ospitalso r governmentb uildings . Public sector constructiona nd infrastructurep rojectsp rovide opportunitiesf or expansion . Tool hire companies can seek to introduce stability by entering into long{erm contracts with larger companies . There is a move towards preferred single supplier agreements . Continued improvements in inventory control can gain a tool hire company a competitive advantage, through centralised hire centres and offering the customer flexibility as to where tools can be hired from or returnedto . Periodicre gionagl rowtho pportunitieasr ise,r eflectintgh e impacto f climaticfa ctors( e.9.f looding) . Whilstt he marketi s becomingm orec oncentratetdh rougha cquisitionasn dm ergerse tc,o pportunitiefso r expansions tillp revaiiln the buildersm' erchantse ctor THREATS . Environmentaplr essuresa gainsct ertainla rgec onstructiopnr ojectsin the UK,s ucha s airportso r roads, can meana downturnin the hiringo f largep lanti tems . Secondhanpdl anti s becominmg orer eadilya vailablteh roughth ei nternevti aw ebsitesu cha s eBay . Plantm anufacturerasr ep ersuadincgu stomertso rentd irectlyfr omt he manufacturerra, thert hanb uy . Therei s a possiblen egativeim pacto n consumecr onfldencea ndt he marketf ollowingc urrengt lobal financiapl roblems . Barriersto entryi n the toolh irem arketa re low . Companietsh atw orki n similasr ectorss,u cha s buildersm' erchantasn dD IYs toresh, avet hen ecessary premises, equipment, finance and customers to move into the tool hire market . There is a possible negative impact resulting from decline in housing market Page 13 The Competitive Landscape The highlyc ompetitiveU K marketm eanst hat planta nd equipmenut tilisatione edst o be around9 0o/ow, hich is very difficultf or many organisationsto achieve.l ncreasingly, organisationsa re investingin an InformationT echnology( lT) infrastructurwe hich will enablet hem to be moree fficientin the loano f equipment.l T also improvesu tilisation rates thereby enabling rentals to take place at a further distance from the depot than was previouslyp ossibleI.n additions, omeU K firmsh ave beenp ursuinga growtha gendab y |
