The firm said it can’t compete with major national hirers.

The Plant Hire division will be closing from Friday 28th June. No other parts of the Danaher & Walsh business are affected by the move.

The Leicestershire based group said its focus will now be on the core Civil Engineering division and its growing Advanced Pipeline Solutions (APS) business.

Group Managing Director Dan Danaher said: “This difficult strategic decision has been made with a heavy heart and after extremely careful consideration.

“The changing dynamics of the plant hire market mean that it has become increasingly difficult for medium-sized business like our own to compete against larger, national hirers.

“Our analysis suggests no indication that this situation is likely to improve in the near future.

“Ever increasing costs have far outpaced growth in charge-out rates, meaning profit margins have been squeezed.

Furthermore, a saturated market has made it very difficult for us to achieve utilisation rates anywhere near what is required to be sustainable.

“I am extremely grateful to everyone in the Plant Hire team for their hard work and dedication during their employment with us.

“The Plant Hire business is a very important part of Danaher & Walsh’s history, and it is with deep regret that we exit this market.

“However, whilst we are very proud of our past, we must look to the future and adapt our business accordingly.”