FORMATION of Boom Logistics is the latest in a series of recent consolidation moves within the crane hire industry in Australia.
Boom Logistics is the result of a merger of three privately owned, mid-sized crane hire companies in Western Australia (Uniway Crane Hire, Midland Cranes and Alpha Crane Hire) and Victorian tower crane specialist Sutville. Further acquisitions are planned. The company expects savings from economies of scale, and has already rationalised its depots.
Late last year Whyco Cranes, based in Minchinbury (west of Sydney), joined forces with Kanabrook Cranes to form a fleet of 14 all terrain cranes, and cost efficiencies were cited as a reason for the amalgamation.
In mid-2001 Holts Crane Hire took over the Brambles depot in Brisbane, acquiring a 330t crane and two 140t cranes in the process. These moved the company into a different league in terms of the projects it could undertake with its own equipment. The cranes have been busy since the takeover.
A couple of years earlier Holts acquired Albert Crane Hire, in part for its strategic positioning along the corridor where a major eight-lane highway was being built. This generated considerable business for the cranes, lifting bridge girders and portable concrete barriers. Holts also benefited with considerable work carting bridge girders and piles with its specialised fleet of trucks with steerable jinkers or dolly trailers.
Elsewhere some other Brambles depots have been sold as the former market leader has disposed of its general hire fleet. In some cases former managers have organised buyouts, while in others existing crane hirers have bought the business, either in full or in partnership with existing staff.
Low rental rates, increasing regulatory pressures and flat demand have contributed to drive consolidation.
