Executive Hire News › Archives › October 2008 › Market Report - Temporary Power: Powerfully positive

Market Report - Temporary Power: Powerfully positive

Demand for temporary power continues to increase, giving many profitable opportunities for hirers.

A recent trading statement from Aggreko put the strength of demand for temporary and standby power in a worldwide perspective. It described how “The structural imbalance between global demand for, and the supply of, power continues to drive our business,” and it anticipated a strong performance in the second half of the year. The company has certainly won some substantial contracts, having supplied 140MW of power for the Beijing Olympic Games venues, and it has secured an Official Supplier agreement to provide the Vancouver 2010 Olympic and Paralympic Winter Games with temporary power and temperature control equipment.

Closer to home, although the private house building market is struggling, there are other, more positive opportunities. “We have not noticed any significant change and we are still very busy,” says Graham Cornes, Managing Director of Cheshire-based Golden Triangle Generators. “While we obviously supply equipment to construction companies, we do not depend on their business. Our other important markets range from industrial organisations and utilities, to events and entertainment organisers. We continue to expand our fleet, now having approximately 275 generators from 6.5-1250kW.”

Mather and Stuart of Wigan is successfully meeting demand for environmentally friendly power generation. “We have developed a range of bio-fuel generators over the past two years, and have spent approximately £1.5m in research and development,” says Marketing Director, Mark Stuart. “We have surmounted several obstacles, and have found only one major engine manufacturer that will give a full warranty on their products running on bio-fuel.

“We now have 150 such generators in our fleet, made in the same style as our established Voltsafe units but finished in lime green. They also have control panels with low-energy lamps. They have aroused the interest of the public sector and we have secured a 25-year deal, worth £3m annually, to provide power equipment to numerous government departments and organisations that want to lower their carbon emissions.
“We are increasing the number of larger generators within our conventional fleet, with a further six 1000kVA models currently ordered. In addition, we are selling and hiring generators overseas, particularly to the Middle East and Far East. We have worked abroad before, through UK customers wanting to use our equipment on overseas contracts, and we are expanding this. I have been learning Urdu and Arabic to help break down cultural barriers.”

Leisure and events market

Typical of independent tool and equipment hirers that are successfully supplying generators is Flying Hire of North Scarle, Lincolnshire, which has 12 MacGen machines up to 100kVA. “In the past we have supplied them as far afield as Northampton, London and Essex,” says Director Joe Nearn. “We solely target the leisure and events markets, such as concerts, shows and wedding receptions. We supply a full service, from delivery and set-up through to collection, and it is like any other aspect of hire: if you do it well, you will build a reputation for reliability, and business will grow by word of mouth.”

The importance of service and added value is emphasised by the Bristol-based specialist, Power Electrics. It recently increased its transport fleet with two 26-tonne lorries with a tri-axle drawbar trailer and a rear-mounted loader crane, which can lift and position a 7.5-tonne generator. Transport Manager Alex Harris says that outsourcing transportation would lower service levels, and that this investment “enables us to offer customers the best possible response times and a reliable operation.”

Hirers must stay alert to all potential opportunities. Several generator suppliers have pointed to the growth of leisure breaks and camping holidays in the UK (Tesco Direct recently reported a 38% increase in camping equipment sales). People staying under canvas may need power for equipment such as lights, grills and - particularly in our climate - heaters. •