8567.0 - Hire Services, Australia, 2002-03  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 18/06/2004   
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MEDIA RELEASE

June 18, 2004
Embargoed: 11:30 AM (AEST)
107/2004
Motor vehicle hire generates $2 billion in income

New figures about three distinct areas of hire services in Australia, was released today by the Australian Bureau of Statistics.

Motor Vehicle Hire and Leasing

In 2002-03, Australia's motor vehicle hire and leasing services businesses generated $2 billion in income. Under half of this income ($900 million (m) or 45%) came from the rental or hire of motor vehicles, with cars accounting for most of this income (77%).

The rental of motor vehicles to household clients accounted for more than half of the total rental/hire income ($480m or 51%), while commercial clients accounted for 37% ($345m) of the total.

Other findings from motor vehicle hire and leasing included:
    • Vehicles hired from airports accounted for 38% ($360m) of the hire/rental income.
    • There were 61,000 vehicles in Australia's rental fleet as at June 2003, with 30% of the total rental fleet based in Queensland.
    • As at June 2003, there were 400 businesses employing 6,800 people.
    • Operating profit before tax was $170m, which resulted in an operating profit margin of 8.8%.

Plant and Equipment Hire

In 2002-03, Australia's plant hiring and leasing businesses generated $2.6 billion in income. The highest income earner from the hire of plant and equipment came from cranes (17% or $380m), followed by scaffolding (16% or $360m) and earthmoving equipment (12% or $250m).

Other findings for plant and equipment hire included:
    • Approximately one-third (33%) of all hire/leasing income came from short-term plant and equipment hire (i.e. rented for one month to less than 12 months).
    • As at June 2003, there were 1,200 businesses employing 13,700 people.
    • Operating profit before tax was $350m, which resulted in an operating profit margin of 13.5%.

Personal and Household Goods Hire

Australia's personal and household goods hiring businesses generated $360m in income in 2002-03 (90% of this income was from the hire of goods). Less than half of the hire income from goods ($155m), was made from the hire of party/event/function/exhibition goods and equipment.

Almost one-third (32%) of all hire income came from goods that were rented for two days to less than a week. One-quarter of hire income was earned from the hire of goods for periods of 12 months or longer.

Other findings from personal and household goods hire included:
    • Victoria had the greater share of total income (32%), followed by New South Wales (31%).
    • As at June 2003, there were 500 businesses employing 4,200 people.
    • Operating profit before tax was $20m, which resulted in an operating profit margin of 5.5%.

Further information is in Hire Services, Australia, 2002-03 (cat. no. 8567.0).

Media Note: This publication contains information about three distinct and unrelated areas of hire services in Australia. Each area should be reported in isolation.

One billion = one thousand million