This report focuses on the rental of construction equipment, with or without operator, in South Africa, including comprehensive information on the state and size of the sector and the performance and corporate actions of the sector’s notable players. There are profiles of 29 companies including major players such as Barloworld and Raubex. There are profiles of franchise companies such as Talisman, which has launched franchises in Builders stores, and companies such as enX group, whose rental trucking fleet and logistics business was bought in a R3.1bn deal.
Renting of Construction Equipment with or without Operator
The rental of construction equipment, also known as the plant hire industry, includes a handful of relatively large plant hire companies, and many more small players. Plant hire, like the wider equipment sector, is under increasing pressure due to economic headwinds and the ongoing decline in the construction sector. While equipment rental has proven more resilient than direct sales, and is enjoying relatively stable demand from mining contractors, plant hire companies are waiting on an economic recovery and an improvement in state and private sector infrastructure spending. The fragile situation has been exacerbated by the coronavirus pandemic and consequent economic lockdown, which represent a potentially significant longer-term threat to companies, employment, and activity in the construction sector.
The plant hire industry is facing mounting pressure due to South Africa’s economic recession and the ongoing weakness in the construction sector which has caused construction and mining companies to change their machinery purchasing and replacement policies. The decline in sales of new equipment has resulted in a shift towards rental and aftermarket service activity. Players do not expect an improvement in market conditions in the short-term and are looking to streamline their operations, cut costs, and leverage the increased demand for aftermarket and equipment rental services. Players are looking at geographic, client and product expansion.