Faulty framework: Industry revenue collapses as construction demand declines

The Machinery and Scaffolding Rental industry mainly rents machinery and scaffolding to downstream construction and mining companies on the basis of dry hire, which is the hiring of equipment without operators. The industry also rents equipment to homeowners for DIY projects, independent contractors, industrial clients seeking to expand their short-term capacity, and to agricultural customers to meet seasonal demand.The industry's performance peaked with the mining investment boom in 2012-13 and has subsequently contracted sharply over the past five years. Several of the industry's largest firms increased operations to cater for the unprecedented demand conditions in the mining and infrastructure markets...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Industry revenue has been effected by the sharp contraction in the mining and infrastructure markets
  • Demand conditions are currently deteriorating in the residential building markets
  • Growth in building markets will underpin demand for machinery and scaffolding system hire
  • Industry Report - Industry Key Buyers Chapter

    The Machinery and Scaffolding Rental industry has a low market share concentration, with the four largest players accounting for approximately one-third of industry revenue. The three leading firms are expected to account for 29.6% of revenue in the current year. The industry has contracted over the past five years as activity winds back in the mining sector. The relative ease of entry into the lower end of the market, which serves small contractors and households with low-value construction equipment, is a factor in the industry's low concentration. The industry is fragmented, with 97.2% of enterprises expected to employ fewer than 20 people in the current year, including 73.0% of businesses with no employees. Ove...purchase to read more.

    Additional Insights for the Machinery and Scaffolding Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Machinery and Scaffolding Rental Industry 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..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Machinery and Scaffolding Rental Industry?

    Industry firms primarily supply industrial machinery, plant and equipment without operators. Equipment is hired or leased from stock purposefully held for this function. 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 hire 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 road and bridge construction
  • Demand from agriculture

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

  • Industry Outlook
  • Variable construction trends
  • Mining demand to recover
  • Profit remains tight
  • 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 hire 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
  • Chart: Cost Structure Benchmarking – Sector vs Machinery and Scaffolding Rental

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Seven Group Holdings Limited, Emeco Holdings Limited, Kennards Hire Pty Limited,
  • Table: Seven Group Holdings Limited - financial performance
  • Table: Emeco Holdings Limited - financial performance
  • Table: Kennards Hire Pty 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    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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