London, United Kingdom (PRWEB) June 27, 2012
Demand for rental and leased products from the Office Equipment Leasingindustry is driven by computer hardware demand, business equipment investment, government equipment needs and home office requirements. A wide range of companies rent or lease office equipment to preserve cash flow and gain taxation benefits. However, according to IBISWorld industry analyst Alen Allday, “in the long term renting and leasing equipment can significantly increase the outlay beyond the initial value of the goods, particularly for rapidly depreciating products such as computers”. Declining final prices for computers, laptops and computer peripheral equipment have resulted in some businesses opting to purchase these products instead of renting or leasing them. However, the development of new computer and related technologies can contribute to industry growth and demand. The industry's customers may want to use the latest technologies and the industry can supply these at a lower cost than outright purchasing. Industry competition is mainly from external factors, such as low-priced computers and laptops; used or second-hand stores that stock similar equipment; and online companies and auction websites that offer competitively priced office equipment.
In the past five years, industry revenue growth has been highly volatile due to the surging economy prior to 2007-08 and the UK recession, which resulted in significant revenue declines in the following years. As the economy improved, demand for rental and leased products from the industry increased in 2010-11 and 2011-12. Industry revenue is forecast to grow by 3.5% in 2012-13, to total £863.4 million. However, this will not offset the large declines of previous years, with revenue estimated to decrease at an annualised 6.3% in the five years through 2012-13. Allday adds, “in the five years through to 2017-18, industry revenue is forecast to increase as the UK economy recovers and business investment in computer hardware and networks increases steadily”.
The Office Equipment Leasingindustry has a very low market share concentration level due to the large number of small companies operating in the industry. IBISWorld estimates that the four largest firms will account for 8.7% of industry revenue in 2012-13, with the largest eight firms estimated to contribute 12% of industry revenue for the year. Major companies include Hamilton Rentals, Berkshire Hathaway, Acteon Group, City Furniture Hire and Hire Intelligence.
For more information on the Office Equipment Leasingindustry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Firms in the industry are mainly engaged in the renting and operational leasing of office machinery and equipment; computers and computer peripheral equipment; and office furniture.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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