Ashtead Group Results Presentation Deck
DEMAND AND SUPPLY DYNAMICS CREATE A UNIQUE ENVIRONMENT
RENTAL IS WELL POSITIONED TO BENEFIT
Dynamic
Supply chain
constraints
Inflation
Skilled trade
scarcity
16
Explanation
Component shortages, logistics bottlenecks, and
general supply chain challenges remain a reality
for equipment and vehicle suppliers, limiting
availability for end user equipment owners and
smaller rental providers
An environment driving higher costs across most
expense lines over the last year in most
businesses. Ranging from wages to whole goods,
to parts and services. Some businesses are able
to cope, some are not
Nine month results ¦ 31 January 2022
Labour availability in general
and skilled trade in particular is scarce
Duration
12 18 months
Moderation in
quarters to come
For the foreseeable
future / no known
catalyst to reverse this
Our advantage
Partnerships and reputation with our OEMs, in
conjunction with planning Sunbelt 3.0 fleet needs
through 2024, is enabling us to fulfill fleet
requirements to execute on our growth plans and
take advantage of current market dynamics. This is
enhanced by our financial strength.
We have been able to digest the inflationary
pressures through benefits of scale and rental rate
increases. We are confident this will continue to be
the case.
The focus on our people, particularly during the
pandemic, improves retention and enhances our
ability to recruit. Labour constraints will result in
projects taking longer to complete and accelerate
shift to rental.
THESE DYNAMICS ARE ALL TAILWINDS TO RENTAL PENETRATION AND WILL FAVOUR BIGGER BUSINESSES
WITH STRENGTH IN BALANCE SHEET, ACCESS TO CAPITAL AND EXPERIENCE TO EXECUTE.
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