25.01.2019
235 JCB telehandlers for Nixon
UK based telehandler rental company Nixon Hire has placed an order worth more than £10 million with JCB for 235 telehandlers for delivery throughout 2019.
The order includes a wide of regular machines from the compact six metre/2,500kg 525-60 to the 20 metre/4,000kg 540-200. In the latest Cranes & Access Top 30 Rental company survey, Nixon Hire reported a fleet of 410 telehandlers, making it the ninth largest fleet in the country
See Top 30 Rental companies 2018. Last year it purchased a total of 163 new telehandlers.
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One of Nixon Hire's JCB telehandlers
Managing director Graham Nixon said: “Nixon Hire has committed to spend over £22 million in 2019 as part of our capital expenditure schedule and the order we have placed with JCB is the largest purchase within this programme – at £10 million it is actually the largest single order for equipment we have ever placed! The purchase of these machines comes at a very exciting period of growth for Nixon Hire. Our Depot Network is expanding, and the fleet is getting larger – all of which enhances our service offering to customers nationwide.”
“Telehandlers are a core product for us and JCB machines remain in high demand with customers from a wide range of industries due to their durability, comfort and reliability. The order is intended to meet this demand and to fulfil our planned fleet replacement programme. Running and maintaining a modern fleet of equipment is a priority, regularly purchasing kit and replacing older machines with new, ensures our equipment offers the latest in safety features and engine emission technology.”
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L-R -Paul Coates of Scot JCB, Graham Nixon of Nixon and Yvette Henshall-Bell of JCB
Established in Newcastle in 1967 the company operates from 13 locations in the north of England and Scotland, from as far south as Nottingham to Nairn in northern Scotland. The company runs straight frame telehandlers from four metre compacts to 17 metre/4,000kg models.
Vertikal Comment
While a good number of these new machines will go towards fleet renewal the company clearly sees the opportunity to increase market share, at a time when some of the larger general rental companies are taking a more cautious view on capital expenditure and following the demise of Hawk Hire, the 11th largest telehandler rental company in the UK which went into administration two weeks ago.
MS
410 tellies reported last time.
163 new ordered.
So, they are expanding fleet by 39% in just one year!
I can bet they are paying cash (not) for all that new equipment ;)
It seems that current business model in hire industry is:
1.Buy as much (actually lease) of new equipment as you can.
2. Hire it out @whateverrateispossible
3. Pay directors, board etc high salaries, even the business is not making any money, or just breaking even - who cares
4. Pray that some industry leader will acquire you.
5. If not - who cares, just go into administration.
To be honest, I would do the same if only I had access to capventure/cheap credit/bank credit line.
My bets who's going to defalut next:
Have a nice weekend :)