Hire and Rental News - November 2016

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13 HIRE AND RENTAL NEWS • NOVEMBER 2016
According to a new report by specialist
consultancy, Off-Highway Research,
Brexit will steepen the downturn in the
country’s construction equipment market,
and could have a significant inflationary
effect.
The report, The Impact of Brexit on the
UK Construction Equipment Industry,
includes a five-year forecast for sales of
construction equipment in the UK, which
has been developed following a series of
in-depth industry interviews, following
the unexpected referendum result. Sales
of construction equipment in the UK
are expected to be 10% lower this year
than in 2015, compared to the previous
(pre-Brexit) forecast of an 8% decline. The
trend of lower than previously expected
sales is expected to endure for at least
three years, and the impact for different
types of construction equipment is
discussed in detail in the report.
Brexit impact on the UK equipment industry looms large
The UK’s exit from the European Union has triggered a change of leadership in the British
government and caused a period of uncertainty for the UK economy which is likely to have
far-reaching short and long-term implications.
In addition, the UK is expected to see
higher prices for construction equipment
due to the sharp depreciation of the
Pound. According to Off-Highway
Research, some 70% of the construction
equipment sold in the UK is imported,
with other European countries being the
most important suppliers. Indeed, more
of the construction equipment sold in the
UK is manufactured elsewhere in Europe,
than is produced domestically.
These are discussed in depth in the
report, with detailed analysis across 14
individual equipment types; articulated
dump trucks, asphalt finishers, backhoe
loaders, crawler dozers, crawler
excavators, crawler loaders, mini
excavators, motor graders, rigid dump
trucks, masted rough terrain lift trucks,
skid steer loaders, telescopic handlers,
wheeled excavators and wheeled loaders.
At the same time, Off-Highway Research
said the depreciation of the Pound could
give UK-made construction equipment
a price advantage both at home and
overseas.
This particularly applies to articulated
dump trucks (ADTs), backhoe loaders
and telescopic handlers, all of which are
produced in significant numbers in the
UK in terms of the overall world market
for these machines.
The final section of the 50-page report
discusses the different models which may
be adopted for the UK’s departure from
the EU, and looks at their implications
for the country’s construction and
construction equipment industries.
Visit:www.offhighway-store.com/index.
php?route=product/product&product_
id=251&search=Brexit
(by KHL Group's – Construction Europe –
www.khl.com)
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