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Market Report: Temporary Power Power to the people The world’s appetite for electricity seems insatiable, and hirers of generators are benefiting. Alan Guthrie spoke to some of them. The construction industry used to hire generators simply to provide power for tools and equipment on site, but today its needs are much more complex, as a far greater amount of electricity-hungry items are being used. “The construction market remains very strong and shows no signs of slowing,” states Mick Jones, Divisional Director of Speedy Generators, part of the hirer’s Power Division. “Demand for generators is being further increased by the presence of on-site facilities like welfare units containing electrical equipment for heating, drying and cooking. Laptop computers and mobile phones also need to be recharged in temporary offices.” Speedy Generators (www.speedyhire.co.uk/generators) reports similar strength across its other markets, including utilities like water and gas companies, electricity suppliers, the offshore industry, manufacturing businesses and events organisers. Last year, Speedy acquired LCH Generators, which has now been fully integrated into the business, and by the end of this year it is estimated that the generator fleet will total 5,000 machines, ranging from 10-1400kVA. This makes it the largest specialist hirer of its type in the UK, and probably in any single European country. Over 500 generators from 12-1250kVA are to be added by the end of October, predominantly from FG Wilson and GenSet. As EHN reported in the SED review in our June issue, Speedy is introducing BioPower generators running on 100% biofuel, derived from oilseed crops. “We have a dedicated fleet in sizes from 20kVA to more than 1000kVA, and they are ideal for environmentally sensitive sites,” contends Mick Jones. “Any spillages biodegrade naturally and safely. We are also exploring the use of fuel cells, and this kind of green technology has to be the way forward.” Wigan-based generator hire specialist Mather & Stuart (www.matherandstuart.co.uk) also reports expanding business, and not just in its immediate locality. “Many of our customers are winning contracts in other regions as well, but still choose us because they appreciate our service,” contends Marketing Director, Mark Stuart. “We frequently supply generators throughout the Midlands, and have taken orders as far south as Gatwick Airport and parts of London. “Our fleet currently totals approximately 850 machines and we expect to reach 1,000 by the end of 2009. We buy more units as demand dictates, and we have recently established links with an overseas supplier that can guarantee us quick delivery. Some manufacturers currently quote lead times of up to 20 weeks but hirers, and their customers, need equipment immediately. Demand shows no signs of slackening. “People are recognising the strains on the National Grid and we are receiving more orders for the hire of generators purely as emergency backup, in case of power interruptions. Everyone expects electricity to be available at the press of a switch,” states Mark Stuart. Aggreko (www.aggreko.co.uk) reports strong demand recently following the severe flooding that affected parts of northern England and the Midlands. It has provided generators to keep businesses functioning, as well as dehumidifiers. The company, which was purchased last December by GE Energy Rentals, says that customers are aware of having to reduce their carbon footprints, and that design and manufacturing processes at its Dumbarton plant are implemented to reduce product emissions, as well as noise. Power Electrics is another hirer in optimistic mood, with a new depot at Bridgend opening this autumn. The company, which has other branches at London, Cambridge, Stoke and Stockton, as well as its Bristol head office, has 1,500 generators in its fleet and is a dealer for FG Wilson. “Demand is increasing throughout all our market segments, and the Government’s commitment to building millions of new homes can only lead to more construction activity,” states Rental Sales Manager, Steve Williams. Immediate response He believes that, despite the recent large acquisitions mentioned above, there will always be a place for specialist independents. “This market is different from mainstream plant and equipment. Customers expect a full range of backup services, such as fuel management, and immediate response in the event of equipment failure. All our machines have remote monitoring capabilities, enabling their operation to be checked from any location. Independents can give the required flexibility more easily.” Power Electrics (www.powerelectrics.com), which also offers GenSet VT-1 lighting towers, has several prestigious large-scale contracts within the events market. Its contract to supply equipment and related services for the Goodwood Festival of Speed and the Goodwood Revival events has recently been renewed until 2011, and the business also provides equipment and fuel management for the Fairford Royal International Air Tattoo in Gloucestershire. While traditional power generator hire markets remain strong and are poised for even further growth, there are other trends that can lead to new business opportunities. Cheshire-based Golden Triangle Generators (the subject of a separate article within this Market Report) cites the growth in ‘teepee weddings’, an increasingly popular option for eco-conscious couples. This involves the erection of a giant tent in a large green space, to host both the wedding and the reception. This cuts down guests’ travelling and reduces fuel emissions, with generators being hired to provide power for catering, lighting and heating. Presumably, the really environmentally conscious will specify generators running on biofuel. • Executive Hire News › Archives › September 2007 › Market Report › Power to the people
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