Ardent Hire Solutions is moving away from the excavator rental market due to financial challenges.
- The company cites “ever-decreasing returns” as a primary reason for the decision.
- A strategic shift will see Ardent focusing on expanding its telehandler fleet.
- More than 2,000 earthmoving machines are being sold off by Ardent.
- Ardent aims to set new standards in material handling and lifting hire.
In a significant strategic shift, Ardent Hire Solutions has announced its decision to exit the excavator rental market, citing “ever-decreasing returns” as a fundamental cause. This decision follows the filing of the company’s annual financial report earlier this month, revealing plans to sell its earthmoving fleet. Ardent has publicly detailed the reasoning behind this change, highlighting a combination of rising capital equipment costs and declining rental rates, exacerbated by market saturation and aggressive pricing by new entrants.
Ardent is redirecting its investments towards enhancing its telehandler capabilities. The company has committed £50 million to refresh its telehandler fleet, with expectations to introduce more than 750 new machines by 2025. This investment includes significant orders from manufacturers such as JCB and Manitou, reflecting Ardent’s confidence in this specific sector as a future growth area.
This decision is part of Ardent’s evolution towards becoming a specialised equipment supplier. According to the company’s analysis, the ongoing decline in the residual values of used equipment on a global scale has contributed to the erosion of returns from the earthmoving sector. By concentrating resources on telehandlers, Ardent aims to optimise its asset allocation and cement its position as an industry leader in material handling and lifting.
Julian O’Neill, Ardent’s Chief Financial Officer, underscored the potential benefits of this transition, stating, “The transition secures the future for both Ardent and for our customers.” With a sharp focus on the telehandler segment, coupled with substantial investment, Ardent intends to deliver unparalleled service and redefine standards in the field.
Ardent’s journey to this juncture began with its formation in 2015, following the merger of Fork Rent, a telehandler specialist, and One Call Hire, a general plant hirer. This pivot marks a strategic realignment towards its original focus, embracing the successful aspects of its foundational business model. The decision to part with the One Call Hire segment is seen as a critical move in reshaping the company’s future trajectory.
In focusing on telehandlers, Ardent aims to redefine the industry standard for material handling and lifting services.
