Executive Hire News › Archives › October 2009 › Market Report: Heating & Lighting : Targeting the hot spots
Market Report: Heating & Lighting : Targeting the hot spots
EHN assesses some of the latest trends in the hire of heating and lighting equipment, and considers initiatives to help hirers win more business.
Despite the unpredictable nature of our climate, the fact that autumn ushers in colder conditions inevitably creates demand for heating equipment. Dave Matthews, Commercial Director of Climate Hire & Sales, the division of Hire Station offering cooling and heating products, believes that markets like the events industry will continue to offer good hire opportunities. “Despite a disappointing summer, local shows and events have still gone ahead. Some may have been on a reduced scale, but they have still needed climate control equipment like air conditioning machines in marquees to keep guests comfortable. The same will apply regarding heating equipment.
“Organisers know that if the temperature is likely to fall below, say, 15° C, marquees will need to have heating. Guests attending functions like wedding receptions want to remember the event for the enjoyable food or the disco, not how cold they felt.” He also points out that there continues to be increasing demand for indirect fired heaters, since such machines produce no naked flames, and products of combustion are exhausted via a flue.
Heating equipment opportunities
To help other hirers take advantage of opportunities in the heating equipment hire market, Climate Hire & Sales earlier this year introduced its Wholesale Climate Hire activity, enabling hirers throughout the country to offer their own customers a comprehensive range of products (as reported in the March issue of EHN). A variety of promotional and marketing support services are also offered, enabling hirers to target this segment without committing significant capital resources to seasonal products. “We expect hirers will recognise the benefits they can gain through being able to offer heating products, perhaps as part of a package with their mainstream tools and equipment,” says Dave Matthews.
Similarly, West Midlands-based Cool Services launched a climate control equipment crosshire operation at the Executive Hire Show in February. “By being able to make contact with so many hirers, the exhibition gave us a really firm foothold,” says Director Kevin Scott. “Already, several hirers who crosshired air conditioning equipment from us this summer have been enquiring about heating products to fulfil demand from customers who now realise they can offer this kind of product.
“While some specialist hire companies target larger organisations like national contractors, it is important not to overlook smaller customers such as one or two-man building firms. Together, such clients represent a massive market for heating and drying equipment. Increasingly, such customers are hiring for shorter periods, off-hiring items as soon as they are no longer needed, and if hirers can be flexible in operational aspects such as delivery and collection times, they will win the business and develop an additional revenue stream.”
Dennis Gwynne, Director of Technical Services for the heating and cooling specialist Andrews Sykes Hire, highlights how Health & Safety considerations continue to influence many equipment procurement decisions. “Demand for indirect fired heating products grows because more insurance companies and safety officers prefer equipment that produces no naked flames. Requests for our temporary mobile boilers and air handlers also continues to grow, for both short and long term contracts, in premises such as event marquees, warehouses, hotels and schools. They are often specified to meet heating and hot water requirements during planned maintenance or in emergencies.
“Of course, many customers come to us simply seeking a solution to a problem, rather than requesting a specific product. As is so often the case, hirers like us play a key role in providing advice and information to meet their needs, as well as the equipment.” Health & Safety considerations are also playing an important role in the selection of site lighting, according to Paul Hay, International Sales Manager for the manufacturer, Tower Light. “Site managers now realise they need to provide a certain level of light throughout an area for safe and efficient working conditions. This is a message hirers can promote to win business.
Additional hire opportunities
“Our VT1 lighting tower, with a 9m vertical lift mast, is designed for quick and safe erection in many markets, such as construction, events, rail and military applications. Since the machine’s launch six years ago, we have sold more than 10,000 and we continue to receive orders from hire organisations of all sizes. As EHN reported in August, CBL’s Bristol depot has added the product to its fleet, and the company has ordered more. Charles Wilson Engineers Ltd has also recently bought additional VT1s for its fleet.
“In addition, hirers can profitably supply equipment like our LinkTower alongside generators they may already have in their fleet. Several can be linked together and driven from one power source, giving additional hire opportunities.” Brightlights, a specialist outdoor lighting equipment hire company, has reported brisk business this summer. “The event industry now represents 75% of our turnover. This is despite the challenging economic conditions. We have seen about a 15% increase this year,” says MD, Nigel Gilbey. “We have been kept very busy as a result, and we are adding new equipment to our fleet as necessary. We currently own over 200 towable units, as well as individual lighting units, tripods and cabling. Most of our towable units are Amida lighting towers, and we also offer the environmentally friendly Ecolite and the compact Ecolite P model. Traditionally, demand from construction industry customers starts in late October, so we are now preparing for another busy period ahead.” • |
