Undermined: Weak mining demand has forced industry firms to focus on construction markets

The Machinery and Scaffolding Rental industry mainly rents machinery and scaffolding to downstream construction and mining companies on a dry hire basis, meaning without operators. The industry also rents equipment to independent contractors, to homeowners for DIY projects, to industrial clients expanding their short-term capacity, and to agricultural customers to meet seasonal demand. The industry's performance peaked at the height of the mining investment boom in 2012-13 and has trended downwards since then due to the slump in mining and infrastructure markets. Several of the industry's largest firms have struggled to adjust their operations to weaker demand conditions, and their performance has suffered as a result...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • The sharp contraction in mining and infrastructure markets has affected industry revenue
  • Demand conditions are currently worsening in residential building markets
  • Growth in building markets will underpin demand for machinery and scaffolding systems hire
  • Industry Report - Industry Investment Chapter

    The industry exhibits high capital intensity. The industry's operations involve the dry hire of a range of expensive construction equipment, including earthmoving vehicles, heavy construction machinery, scaffolding and general tools. The industry's labour input is substantial, absorbing about 17.7% of industry revenue in 2018-19. The industry's workforce is required in areas such as sales, maintenance and delivery of equipment, although many firms outsource equipment maintenance. The industry also has a high capital equipment requirement with depreciation projected to currently account for 13.1% of industry revenue. This indicates that for every dollar spent on capital equipment in 2018-19, the industry is projected to spend $1.35 on labour costs...purchase to read more.

    Additional Insights for the Machinery and Scaffolding Rental Industry

    IBISWorld has determined the most important Key Success Factors for the Machinery and Scaffolding Rental are:

  • Access to the latest available and most efficient technology and techniques
  • Ability to quickly adopt new technology
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Demand from building construction and Demand from heavy industry and other non-building construction in the Machinery and Scaffolding Rental industry impact industry performance..

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    What's in this report

    What is the Machinery and Scaffolding Rental Industry?

    Industry firms primarily supply industrial machinery, plant and equipment without operators to clients. Industry operators provide equipment on an operating lease basis, with financial leasing activities excluded from the industry.

    Industry Products
  • Earthmoving and other heavy construction equipment
  • Cranes and access equipment
  • Other assets
  • Scaffolding
  • Forklifts
  • Portable accommodation
  • Non-hire goods and services
  • Industry Activities
  • Agricultural machinery rental (without operator)
  • Construction machinery rental (without operator)
  • Mining machinery rental (without operator)
  • Access equipment rental
  • Scaffolding rental, not including erection of scaffolding
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from building construction
  • Demand from heavy industry and other non-building construction
  • Actual capital expenditure on mining
  • Demand from mining
  • Demand from road and bridge construction
  • Demand from agriculture

  • Current Performance
  • Profit margins fall
  • Infrastructure construction
  • Moderate building trends
  • Surge and fall in mining demand
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Stronger construction trends
  • Mining demand to recover
  • Other demand drivers
  • Profit margins widen
  • Table: Machinery and Scaffolding Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machinery and Scaffolding Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Mining
  • Construction

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Mining and Construction Machinery Manufacturing
  • Mining and Industrial Machinery Wholesaling

  • Products & Services
  • Cranes and access equipment
  • Earthmoving and other heavy construction equipment
  • Non-hire goods and services
  • Scaffolding
  • Other assets
  • Forklifts
  • Portable accommodation
  • Chart: Machinery and Scaffolding Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Infrastructure construction contractors
  • Mine operators and subcontractors
  • Building construction contractors
  • Households and contractors
  • Industrial and maintenance industries
  • Agricultural and other industries
  • Chart: Major Market Segmentation for the Machinery and Scaffolding Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Depreciation, leasing and rental costs
  • Purchases
  • Repair and maintenance
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Machinery and Scaffolding Rental

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Machinery and Scaffolding Rental Industry

  • Industry Globalization
    Seven Group Holdings Limited,
  • Table: Seven Group Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Machinery and Scaffolding Rental Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Machinery and Scaffolding Rental Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dry Hire
  • The hire of equipment without an operator.
  • Finance Lease
  • A longer term lease that can occur over the asset's entire operational life. The lessee is often responsible for maintenance and insurance.
  • Lease
  • A contract conferring a right for one party to possess property belonging to another party to the exclusion of the owner.
  • Operating Lease
  • A short-term lease that occurs for only a short period compared with the life of the asset.
  • Wet Hire
  • The hire of equipment with an operator.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Machinery and Scaffolding Rental market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Machinery and Scaffolding Rental:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Machinery and Scaffolding Rental market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Machinery and Scaffolding Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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