Melbourne, Australia (PRWEB) August 13, 2012
The mining and construction divisions are central in determining the fortunes of the Plant Hiring or Leasing industry. The major products supplied by the industry are scaffolding, cranes and earthmoving equipment. According to IBISWorld industry analyst Caroline Finch, “IBISWorld estimates that industry demand has risen in conjunction with increased investment in mining over the past five years”. Industry revenue is expected to increase at a compound annual rate of 3.5% during the five years through 2012-13, to total $5.97 billion. Commodity volumes are more important to the industry than commodity prices, and this is significant when assessing the relevance of the global financial crisis to the industry. High commodity prices will aid mining company profit margins and the viability of expansion, but it is the amount of commodities mined that has the most effect on the Plant Hiring or Leasing industry.
The issues that continue to affect the global economy are tipped to limit industry growth in 2012-13. Finch adds, “industry revenue will still be in positive territory, however, growing by an estimated 4.3%”. Commodity prices are creeping back up from low bases, although the Mining division is expected to face flat global demand due to unresolved structural problems in numerous foreign economies and further uncertainty related to taxation. However, the volume of commodities mined in Australia during 2011-12 was high and there is a large amount of new development in the pipeline for the medium term. More modest levels of capital expenditure in the mining and non-residential construction markets are expected to affect demand for plant and equipment hire services, although government stimulus spending on infrastructure will offset some of this weakening. Over the next five years, Plant Hiring or Leasing industry performance is expected to strengthen as the world economy recovers and capital spending increases.
Market share concentration is low in the Plant Hiring or Leasing industry, but has increased over the past five years. However, the industry remains relatively fragmented, with the majority of establishments employing fewer than 20 people. This is because of the relative ease of entry into the lower end of the market, which serves households with low-value equipment. IBISWorld expects mergers and acquisitions to continue in the next five years as players position themselves to benefit from economies of scale. Seven Group Holdings Limited, Waco Kwikform Limited, Boom Logistics Ltd and Emeco Holdings Limited
For more information, visit IBISWorld’s Plant Hiring or Leasing report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry provide industrial machinery, plant and equipment (except transport equipment) for hire or lease, without operators, from stock purposefully held for that purpose. Leasing equipment is not a major part of this industry, as this is usually undertaken by leasing and finance companies.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.