HIRE
HIRE MARKET —
A DIVERSE PORTFOLIO
By Ntsako Khosa
With experience that spans over 38 years, KZN-based small plant equipment and power tools
sales and hire company Hire it evaluates market conditions and is hopeful for what the future
holds. We sit down with sales director, Richard Fraser.
Plant Equipment & Hire (PEH): Please
could you elaborate on hire market
conditions; what has the market
looked like over the past five years?
Richard Fraser (RF): In the past five
years, we have seen a lot of growth in
our industry, and a lot of new players
in the market, from franchise outlets
to private entities. When my father
started the company, there were two
hire companies in the whole of Durban.
Now, there are probably 15 places
that you can hire a jackhammer from
in Pinetown alone. So, this increase
has certainly made the market more
competitive.
Last year was a tough year in the
construction industry. Our suppliers
and customers complained of business
being quiet. The general downturn in the
economy has been felt in the building
industry. We also saw some of the big
corporate builders going into business
rescue, which is a sign of the times.
PEH: Is there an indication of where
it is heading?
RF: I do feel that the market has
become very heavily traded, and
companies are sitting on lots of stock.
If this downturn continues, I think we
will see companies consolidating branch
networks and rationalising assets, as it
is not sustainable. Although, I do believe
that the market will recover — we have
to be optimistic. I do believe that things
will pick up.
PEH: Industry professionals talk
about how hire is the latest trend.
Why is that? Is it true?
Although the function of hiring equipment has always been around, it is evolving to
suit the needs of the contractor.
30
MARCH 2019
RF: Hire companies have been around
for a long time, and I do feel there
will always be a place for hire in the
industry. Historically, the established
builders have owned a lot of their
own equipment and have used hire
companies for extra capacity. While
these companies have saved money on
owning their machines, there is the sunk
cost of having a workshop, mechanics,
and spares to maintain the machines.
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