Market Report: Portable Power

Power surge

The hire market for temporary power generation equipment remains strong.
Starting our Market Report, Alan Guthrie talks to several hirer and suppliers.

The most significant recent event in the temporary power market was Speedy’s acquisition in May of LCH Generators. The latter’s fleet totalled approximately 2,400 generators from 10-1000kVA, and this gives the combined Speedy LCH Generators fleet a total of more than 4,000 machines. Andy Carter, Managing Director of Speedy Power (www.speedyhire.co.uk/power) contends that the two businesses dovetail very well. “Duplication of outlets is minimal and they are being organised in a way that will result in us having nine power generation depots and nine air power locations.”

LCH has grown by approximately 20% per annum for the past five years and Andy Carter anticipates that the market will remain strong. “The construction industry is booming and there are signs that manufacturing is coming back from recession. We also plan to expand our focus on the industrial sector, serving utilities and regional generating companies with even larger equipment. The events market remains important to us and we also plan to increase the specialist lighting products that we offer.

Continuing investment

Overall, demand for temporary power can only increase, as the amount of electricity required rises. This country could go the same way as the US, with more ‘brownouts’ occurring, where the supplier has to reduce the electrical voltage owing to extra demand.” The majority of LCH’s fleet comprises FG Wilson generators, while Speedy Power has a substantial proportion of GenSet equipment. Andy Carter states that the strong links with both manufacturers will be maintained, and that investment in the fleet will continue. The continuing success of GenSet (www.genset.co.uk) is evidence of the strength of national hirers. “We made a conscious decision approximately five years ago to target the needs of larger companies like Speedy, A-Plant and others,” states Chief Executive Officer
Jeff Davies. “They seek manufacturers that can develop the niche products required by their customers, such as generators that can run unattended for very long periods. This enables a hirer to differentiate itself from its competitors, and we can develop products with realistic whole-life costs that offer a strong value proposition.”

Requirement for high-quality power

John Parker, GenSet’s Power Generation Sales Manager, states that the hire of temporary power products continues to grow. “Increased electrical demand is placing greater strain on the National Grid. Computer controlled equipment requires high-quality power, and Health & Safety regulations have led to a huge growth in on-site accommodation and welfare cabins, incorporating electrically driven equipment. Manufacturers also have to meet the requirements of legislation governing noise and emissions. Noise is something we have addressed for several years, adopting improvements like canopies with better sound insulation, and we have worked with engine manufacturers to reduce emissions.”

Specialist power product hirer Aggreko (www.aggreko.com), which also has a manufacturing plant in Dumbarton, similarly reports a buoyant market. “It is very healthy and very competitive,” states Marketing Manager Northern Europe, David Camm. “Customers are increasingly aware of the availability – or non-availability – of power from the National Grid, and tight capital expenditure control is driving the choice of hiring as opposed to buying.

“We have to ensure that equipment is as close to our customers’ locations as possible to provide a rapid service. To satisfy this demand we will shortly open a multi-million pound service centre in Doncaster.” Aggreko, which has invested €25m (£16.75m) in new equipment during the past year, has a new customer contact number (08458 247 365) which routes directly through to its National Rental Centre in Cannock.

Bristol-based hirer Power Electrics (www.power-electrics.com), which is particularly strong in the events market, is just nearing the end of its busy May-September period. “It’s been another excellent year,” states Director Andy Pullin. “Some hirers are targeting national agreements, but we believe that can compromise service. Providing local support is essential. Power is vital: if generating equipment fails, a site comes to a stop, with no electricity for necessary welfare facilities, let alone power tools. Prompt service backup is needed.

“We have other branches in Stoke, Cambridge, Bridgend, and Glasgow serving regional clients. Demand is strong for synchronous generating equipment, which ensures consistent performance even if a main unit fails, as well as for our ancillary services such as fuel delivery and management, which relieves customers of other burdens. Secure anti-vandal units for housing generators are also very popular, particularly in remote or unattended locations. Demand for lighting equipment is strong. We now have 70 GenSet VT1 SuperLight towers, and this figure could reach 100 by the end of the year. Equipment like this enables us to offer a complete package for customers.”

While nationally and regionally focused hirers tend to attract attention, the local independent hire market is still healthy, according to Andy Munford, Director of the manufacturer Arc-Gen (www.arcgen.freeserve.co.uk). “Generator sales have been excellent this year, to both national and independent hirers. We have also experienced particularly strong demand for our welding equipment. Tradesmen will always have a requirement for on-site power and lighting and they need products that supply it in energy-efficient and environmentally friendly ways.” •

Executive Hire News › Archives › September 2006 › Market Report › Power surge

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