MARKET REPORT POWER GENERATION
Generating opportunities
EHN talks to several power generation equipment suppliers to discuss products that can enable hirers to win more business in this market.
Equipment for supplying electricity on a temporary basis remains an essential requirement for professionals in many industries, but the unpredictable nature of the economic recovery makes it difficult to predict the level of demand, according to several suppliers that EHN spoke to while preparing this Market Report.
“In principle, there is an almost insatiable demand for power generation products, as people are using more and more electrical equipment,” said Josh Llewellyn, Chairman of GenSet UK and MHM Plant. “Hirers were investing steadily and heavily in new machines until the economic downturn, following which companies started selling off products to streamline their fleets and to generate cash. Now, however, as the market picks up, many have found themselves with a relative shortage of equipment and have been buying again. This is a trend that we believe will continue well into 2012.
“The key challenge for suppliers is to be flexible. Some equipment in hire fleets is effectively worn out, but companies may not be able to replace all such units in one go. Therefore, we are offering part exchange and buy-back initiatives to help meet their requirements. Similarly, MHM Plant can supply equipment on a re-hire basis, to complement hirers’ owned machines as business grows back.”
Strong event hire market
Josh Llewellyn points out the on-going strength of the event hire market, which has “grown at an annual rate of approximately 10% in recent years, and there are now 800-900 major outdoor concerts, festivals and similar events in the calendar. Obviously, this is a specialised market, but for those hirers who can supply appropriate equipment and meet the demands of efficient build-up and breakdown, it represents solid business.”
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Clive Dix, General Manager of SDMO Energy, also reports a varied pattern of demand. “In recent years, demand has been largely price-driven, but we are now seeing a greater focus on overall costs of ownership. Larger hire companies are also reacting to customers’ needs to recognise environmental issues, and this is being reflected in the demand for our ‘Rental Compact’ specification range of generators, which we officially launched at the Executive Hire Show. These machines are designed to comply with Stage 3 of the European Engine Emissions Directives, which came into effect on 1 January 2011, concerning emissions and noise.”
Recent purchasers of products from SDMO’s Rental Compact range include Charles Wilson Engineers, which has bought ten machines comprising 30, 40 and 100kVA sets, fitted onto road tow trailers.
SDMO recently supplied Rental specification sets to Charles Wilson Engineers.
The units incorporate a controller that monitors oil pressure, coolant temperature, failure to start, alternator faults and low fuel level. “The fact that these generators are Stage 3 compliant was a major factor in our decision to make this purchase,” commented Allan
Skorka, Manager of Charles Wilson’s Instant Power Division. “This substantial investment further endorses our policy of making available the most environmentally efficient equipment for our customers.”
Clive Dix adds that “demand from independent hirers is still considerably below pre-recession levels, but it is picking up, and sales of 3 and 4.5kVA generators from our Perform line-up are reasonably steady.”
Another manufacturer that is benefiting from demand from national hirers refreshing their fleets is Pramac UK. “We are supplying literally hundreds of small portable generators of up to 6kVA to hirers such as Speedy and HSS,” said MD Wayne Steele. “Demand from smaller
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