Danaher & Walsh to exit plant hire market
Following a strategic review of its business, Danaher & Walsh has announced it is to exit the construction plant hire market.
As a result, the Plant Hire division will be closing as of Friday 28th June. No other parts of the Danaher & Walsh business are affected by this.
The group is to focus its attention on its busy Civil Engineering division, as well as its rapidly-growing Advanced Pipeline Solutions (APS) business, both of which have enjoyed record trading years.
Speaking about the change in strategy, Danaher & Walsh Group’s Managing Director Dan Danaher said: “This difficult strategic decision has been made with a heavy heart and after extremely careful consideration.
“The changing dynamics of the plant hire market mean that it has become increasingly difficult for medium-sized business like our own to compete against larger, national hirers. Our analysis suggests no indication that this situation is likely to improve in the near future.
“Ever increasing costs have far outpaced growth in charge-out rates, meaning profit margins have been squeezed. Furthermore, a saturated market has made it very difficult for us to achieve utilisation rates anywhere near what is required to be sustainable.
“I am extremely grateful to everyone in the Plant Hire team for their hard work and dedication during their employment with us. The Plant Hire business is a very important part of Danaher & Walsh’s history, and it is with deep regret that we exit this market.
“However, whilst we are very proud of our past, we must look to the future and adapt our business accordingly.”