We compete with a number of companies around the world, and we have two competitors with whom we compete on a global basis within Power Solutions Utility. But we are the only company with a truly global footprint.
In Rental Solutions, our competitors are either privately-owned specialist rental businesses, divisions of large plant hire companies or OEM dealerships. Few provide the sector specific solutions that Aggreko does.
Over the past year, we have seen an increase in the larger general rental companies moving into speciality sectors, including power, heating and cooling. This tends to affect us at the lower end of the market – the price sensitive, equipment only customers, rather than the full solution customers.
However, we are aware that this poses a threat to us and therefore our strategic priorities are designed to address this. In every region across Power Solutions there are a large number of regional, national and local businesses in the market; in particular, some of the larger Caterpillar dealers.
In recent years competition has been stable, however since 2012, demand has been lower and therefore there has been an oversupply of diesel generation equipment in the market.
The largest competitive force that we face in the utility market is for a share of a government’s budget. In most emerging market countries, the utilities are state controlled and money spent on power is money that cannot be spent elsewhere.
Our key differentiator is our global scale and large homogenous fleet, which facilitates fast deployment and economies of scale.
So few competitors are able to compete for large-scale or technically demanding work. Over the last year we have not seen a significant change in the competitive landscape in Power Solutions.