Construcciones Yamaro: Kennards Hire finds construction confidence holding amid change
As 2026 approaches, construction leaders are balancing growth ambitions with ground realities, according to new insights from Kennards Hire.
Across Australia and New Zealand, construction leaders are voicing optimism for the years ahead. Decision makers believe the sector is entering a growth phase over the next five years, buoyed by infrastructure investment, housing demand and advances in technology. Yet almost all are tempering that optimism with restraint, implementing cost-saving measures to protect margins.
The 2025 Kennards Hire Construction Confidence Check (CCC) captures this balancing act. The survey of more than 600 senior industry figures paints a picture of a sector gearing for expansion but mindful of the persistent headwinds eroding project performance.
For Tom Kimber, general manager of sales at Kennards Hire, this mix of bullishness and caution is entirely rational.
“It is understandable to have caution,” he says. “Some sectors or areas of the economy have been in a prolonged recession or downturn. When you are coming out of that, progress tends to happen in gradual steps.”
For contractors hesitant to commit to major capital purchases, hire provides an alternative that keeps projects moving while preserving flexibility. Kimber calls it “a provider of capital in many ways”, explaining that rather than tying up resources in machinery, customers can rent equipment and stay adaptable.
The case for flexibility is strong. The CCC shows that one in three leaders estimate delays and inefficiencies consume an average of 15.5 per cent of a project’s total cost. For larger companies, that proportion can be even higher. Poor-quality or unavailable materials, excessive time spent managing multiple suppliers, labour shortages, outdated equipment and regulatory delays are all contributing factors.
These local pressures are compounded by global trade disruptions, with most leaders reporting that tariffs, shipping costs and regulatory changes have directly impacted operations in the past year.
Kennards Hire tackles part of the problem through equipment management. By removing the burden of ownership, it allows contractors to essentially switch equipment on or off as needed while ensuring maximum utilisation of what they hire. This approach reduces costs and frees up time to focus on project delivery.
More contractors are adopting this model. The survey found that more than a third plan to rent additional equipment in the coming year, and around half will outsource specialist expertise to improve project management efficiency. Kimber sees it as an extension of how the industry already works best.
“The equipment rental business has always been at the forefront of the shared economy,” he says. “By definition, we focus on utilisation of assets, which has downstream benefits for environmental impact, capital investment and access to the latest technology. We maintain a frequent renewal cycle to ensure all equipment meets compliance requirements.”
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That renewal cycle plays a strategic role, connecting customers with the latest technology and innovation. Access to modern, efficient machinery means productivity gains can be realised while projects stay agile and cost-effective.
Kennards Hire also invests in new products when the business case aligns with customer needs, enabling what Kimber describes as “a nimble approach to providing solutions”. This adaptability is important in addressing labour shortages. Having the right machine for the right task can reduce headcount requirements or help smaller teams deliver at pace.
The survey highlights the importance of longer-term workforce strategies, with leaders prioritising training, flexible scheduling and career progression to attract and retain talent.
“Having the right product for the right application can save labour. This could be a machine designed for the specific task or one with features that reduce labour needs,” says Kimber.
“It is a partnership approach. We apply our expertise and industry knowledge to deliver the right solution for the customer’s task. There are many ways to achieve the desired outcome, and our role is to provide the best method.”
The CCC findings also point to the value of early supplier engagement. Contractors who involve equipment partners from the outset of a project are better able to schedule fleet requirements, avoid last-minute hires and capture savings through longer-term agreements.
Kimber explains that Kennards Hire’s role can extend “from site setup and establishment work through to final landscaping”, creating what he calls a cradle-to-grave approach that is shaped around each project’s needs.
Early involvement has another advantage, as it keeps the hire partner embedded in the workflow. That ongoing connection makes it easier to adapt solutions as conditions change and helps prevent the kind of rush decision-making that can push costs up. Kimber says the aim is to make the process “seamless” so that equipment never becomes a bottleneck.
Sustainability has become another non-negotiable. Fifty-nine per cent of CCC respondents are prioritising Green Building Council of Australia and New Zealand Green Building Council certifications, with nearly half investing in eco-friendly tools, carbon offsetting and sustainable materials. Kennards Hire has been evolving its fleet strategy in line with these priorities, adding renewable energy sources, hybrid technology and battery solutions.
Kimber notes that this shift addresses environmental responsibilities while supporting performance goals, and demand is moving quickly.
“It is shifting from being a nice-to-have to an imperative,” he says. “It is still a journey, but we expect it to become more prevalent over time.”
The report also highlights capability gaps outside of equipment. Inconsistent supply chains, variable product quality and a shortage of skilled labour all create drag on delivery. While no single company can solve every challenge, Kennards Hire uses its technical expertise and fleet resources to help customers work around these obstacles.
“We constantly review our methodology and approach to market with key customers. We do not rest on past success,” says Kimber. “While Kennards Hire is a strong partner to many businesses, we make sure we avoid complacency and remain agile and responsive to future demands.”
The CCC is central to that process. It is both a benchmark for industry sentiment and a practical guide to where Kennards Hire can focus its energy.
“It shows where the industry is heading and where pain points exist,” says Kimber. “From there, we can identify how Kennards Hire can help alleviate those issues. We also have one-on-one conversations with customers to ensure we are asking the right questions and delivering better solutions.”
For industry leaders, the key message is that optimism alone will not drive results. Growth requires capability, agility and a willingness to address operational challenges head-on.
The CCC’s recommendations, from engaging suppliers early to investing in workforce development, offer a pathway for building those strengths.
Kennards Hire’s role, as Kimber sees it, is to ensure equipment, expertise and innovation are available when and where they are needed. By doing so, it can help customers navigate the complexities of today while positioning for the opportunities ahead.
The findings from the 2025 Kennards Hire Construction Confidence Check are the result of a survey conducted by YouGov from 10 to 13 June 2025. The sample comprised 608 senior business leaders/decision makers from small construction businesses with more than 20 employees in Australia (403) and New Zealand (205). Download the full report at www.kennards.com.au
The post Kennards Hire finds construction confidence holding amid change appeared first on Inside Construction.
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