Leppo Rents acquires Valco Equipment
Leppo Rents, a Bobcat and JLG dealer serving Northwest Ohio and Western Pennsylvania, has acquired Valco Equipment, a leader in access equipment rentals, sales, and parts. Valco Equipment has been providing sales, rentals, parts, and service to its customers in Akron, Canton, Columbus, and Cleveland, Ohio, and delivers nationwide since 1987. Equipment lines include JLG, Genie, SkyTrak, Lull, Skyjack, Pettibone, Gehl, and Manitou. The acquisition brings Valco Equipment’s experience and capability with access equipment sales and parts. “We are excited to have Dave Maier and the rest of the Valco team join the family,” said Mike Leppo, president of Leppo Rents’ access division. “Their years of experience and a wide range of products round out our product offerings.” More information about the acquisition can be found by calling 1-800-4-LEPPOS or visiting leppos.com. Leppo Rents is a sales, rental, and service provider of compact construction equipment including Bobcat and JLG. Leppo Rents was founded by Roy and Stella Leppo in 1945 in Akron, Ohio. Today, the company has 10 full-service locations serving Northeastern Ohio; Western Pennsylvania; Dothan and Opelika, Ala.; and Panama City and Tallahassee, Fla.
Sunbelt Rentals lends a hand with HGTV’s Extreme Makeover
Sunbelt Rentals is participating in the upcoming season of Extreme Makeover: Home Edition, which began airing Sunday, February 16, at 9 PM ET/PT, 8 PM CT on HGTV. The show pairs build and design experts to complete extreme, custom home renovations for deserving families who give back to their community. “Each time our crew arrived at a build location, we saw dozens of beautiful, green machines. We knew that scores of people had worked long and hard to get everything ready for each of our ten extreme builds,” says Brady Connell, executive producer for Extreme Makeover: Home Edition. “Sunbelt provided absolutely everything that was needed, as well as expertise throughout the process. Without Sunbelt’s exceptional support, there is absolutely no way we could have accomplished our extreme goal of ten homes in ten weeks.” “We are committed to the philosophy ‘Make It Happen,’” says Joey O’Connell, district manager at Sunbelt Rentals. “Partnering with the show exemplified the spirit behind delivering value to our communities with our equipment and services — and it showcased teamwork in the truest sense.” Sunbelt Rentals provided an array of equipment for this season’s builds, including forklifts, light towers, manlifts, concrete equipment, skid steers, and more. In addition to a staff of mechanics who ensured the equipment was job-site-ready, employees worked together to procure equipment and organize on-time pickup and delivery to all locations. Sunbelt Rentals had members of specialty services on site to keep power supplies running at all hours and staff to maintain equipment as needed at any time of day. The company also installed flooring in volunteer tents to minimize dust and made certain air conditioning was always running, offering a space for much-needed breaks during the builds. These contributions helped prevent project slowdowns under the extreme deadlines. “It was an amazing spectacle to see how everyone worked together to accomplish this seemingly impossible task of building a home in five days,” says O’Connell. “Seeing how these families’ lives were completely changed in a matter of a week was something that we were thankful to be a part of.” HGTV will air 10 episodes of the new reiteration of the popular Extreme Makeover series. Sunbelt Rentals provided equipment and service for every home makeover, utilizing resources from 14 locations across California and Utah. The new episodes will be produced by Endemol Shine North America with Sharon Levy, DJ Nurre, Michael Heyerman, Brady Connell and Jesse Tyler Ferguson serving as executive producers. The company also produced the original version of Extreme Makeover: Home Edition for ABC.
ARA officials say Rentals will continue to grow
Equipment and event rental companies are expected to generate $58.1 billion in revenue in the United States in 2020, up 3.8 percent compared to 2019, according to the latest updated forecast released by the American Rental Association Equipment and event rental companies are expected to generate $58.1 billion in revenue in the United States in 2020, up 3.8 percent compared to 2019, according to the latest updated forecast released today by the American Rental Association. Construction and industrial equipment rental is forecast to reach $40.1 billion in 2020 with general tool rental revenue accounting for $14.1 billion and party and event revenue expected to be $3.8 billion. Total U.S. rental revenue is expected to grow by 4.1 percent in 2021, 4.2 percent in 2022 and 3.5 percent in 2023 to reach $65.2 billion. “We are in a fairly steady growth pattern with the chances of recession relatively low, keeping rental revenue growth moving higher throughout the forecast period,” said John McClelland, Ph.D., ARA vice president, government affairs, and chief economist. “The good news is that the U.S. economy will hold to a moderate growth path, and the risk of recession has fallen,” said Scott Hazelton, managing director, IHS Markit, the economic forecasting firm that compiles data for the ARA Rentalytics service as part of a partnership with ARA. “However, the markets that equipment rental primarily serves are likely to see some challenges. The U.S. economy continues to slow as the impetus from tax cuts, fiscal budget stimulus and interest rate reductions all wear off. Growth will be driven by consumer spending with investment and trade lagging. Manufacturing activity will see virtually no growth in 2020 as the dollar remains high, tariffs continue, and the global economy slows. Even the energy patch will see limited potential as oil prices sag under weak global demand. Absent a Highway Bill that is unlikely in the current political climate, nonresidential construction will contract while residential construction only holds its own.” In Canada, total rental revenue is forecast to top $5.6 billion in 2020, up 2.1 percent compared to 2019. Rental revenue in Canada is expected to grow 2.3 percent in 2021, 3.3 percent in 2022 and 2.7 percent in 2023 to total $6.1 billion. In addition to rental revenue, ARA also is reporting an increase in rental penetration over the last two years, ticking up to 55.9 percent in 2018 and 56.7 percent in 2019. ARA defines rental penetration as the percentage of construction equipment currently in use in the U.S. that is owned by equipment rental companies. “One very impressive number in the latest ARA Rentalytics report is the increase of 80 basis points in the Rental Penetration Index from 55.9 percent in 2018 to 56.7 percent in 2019,” McClelland said. “This is one of the main factors that is keeping rental revenues growing faster than GDP [gross domestic product] and in the face of a flat outlook for construction spending. We believe this increased penetration of rental equipment into the construction market is because equipment rental companies have become problem-solving companies helping customers make more efficient business decisions and reducing the uncertainty that comes with making large capital investments in equipment. Our view is that this trend will continue for the foreseeable future.” ARA and IHS Markit review the ARA Rentalytics program on a regular basis and over the last year, ARA continued to evolve the subscription service by updating the equipment category class reports, adding state economic impact reports, improving the platform interface to speed access to the data subscribers requested and updating the content of webinars that go beyond the numbers with insight related to timely industry topics and issues. “ARA members want and need exclusive rental research and forecasting. These ongoing improvements are geared to the benefit of our members and in 2020, these changes will provide even more value,” said Tom Doyle, ARA vice president, program development. This year, ARA plans to update the party and event rental analysis and forecast with specific webinars for those in the party and event segment as well as update the light construction and general tool analysis and forecast. In addition, ARA will launch a new rental research webinar series and a new quarterly Rentalytics State Digest subscription that is delivered to the subscriber’s inbox with a rolling two-quarter forecast and a link to state economic and business environment analysis.
Durante Rentals moves to new global headquarters
Move supports multi-year strategic growth initiative and focus on employee satisfaction Durante Rentals moved into their new global corporate headquarters located at 145 Huguenot Street in New Rochelle, New York. The new, larger office replaces their former Mt. Vernon based headquarters and provides the necessary space to support the company’s rapid growth and continued investment in their staff. The move consolidates over 30 employees from two of their metro locations into one single location, improving office operations through higher efficiency and cost savings. Durante Rentals has rental locations throughout the Tri-State area in Brewster, the Bronx, Brooklyn, Carmel, Danbury, Elmsford, Flushing, Hasbrouck Heights, Mt. Vernon, and West Nyack – with an additional location to be announced this Spring. “There are many aspects about this move that we love, from the investment in our employees, to the central location of Westchester that allows us to better serve the entire Tri-state area,” said CEO, Anthony Durante. “A lot of hard work went in to creating this employee-friendly space and with this task now complete, we will continue to focus our efforts on superior customer service and our planned expansion along the east coast from D.C. to Boston,” concluded Durante. The new office space is situated within the vibrant downtown district of New Rochelle, just steps from the New Roc City entertainment center. The central location offers immediate access to Interstate 95 and is adjacent to the Metro-North and Amtrak train stations, making for easy transit options as the company focuses on recruiting and retaining a talented and innovative workforce. Qualified candidates can check the company’s careers page for current job opportunities in New Rochelle. “Our operations could not be successful without the dedicated support of our corporate departments. The investment by the company into these functions provides our employees with a secure future and a foundation for the accelerated growth of our company,” said COO, Liam Harrington.
JCB awarded 2019 Supplier of the Year from United Rentals
United Rentals awarded JCB North America as its 2019 Supplier of the Year in recognition of value, delivery, product support, training and procurement excellence. Construction equipment manufacturer, JCB North America, was recognized this month by United Rentals, Inc. as its 2019 Supplier of the Year. The award recognizes JCB for outstanding value, timely delivery, product support, training and procurement excellence. “Winning the coveted United Rentals Supplier of the Year award is a great honor for JCB and high praise from a vitally important customer we’ve been proud to partner with for more than 20 years,” said Andrea Whelan, vice president for Direct Sales at JCB North America. “It’s also deserved recognition for the JCB team that supports our United Rentals partner, and for the passion and commitment they bring to their work every day.” JCB has supplied United Rentals with an extensive range of construction equipment and material handlers since the company was founded in 1997. “I would like to congratulate JCB for winning the 2019 Supplier of the Year Award. This award recognizes dedication to our core metrics which include account management, product support, training, procurement, warranty, and total cost of ownership,” said T.J. Mahoney, vice president of Supply Chain for United Rentals. “JCB scored the highest in overall compliance with our core values and has also shown the most improvement since the implementation of the award. We thank JCB for their commitment to striving for results and being a dedicated partner.”
How do we stack up?
As you know, I have been involved for many years in the material handling industry, the construction equipment industry and the equipment rental industry. It has been a very interesting and educational ride leading me to totally respect all the players in these industries. What I find so interesting about the material handling business is how many dealers respond to competitive and economic headwinds and still survive to fight another day. There is no doubt in my mind that a material handling dealer is working a business in a tough industry. One of the toughest to manage, and to manage successfully. I say that because you compete in a competitive market with excessive OEM options available, at least five profit silos to manage, managing capital intensive products and services, and to top it off, finding yourself in a very competitive situation for personnel to operate the business. With a lack of qualified techs and most sales candidates coming in with a non-compete agreement they signed, being able to attract and keep quality people must be one of the major stumbling blocks you face. All in all, a tough business to work in and still produce above average profits and cash flow. Consequently, I often wonder how a business such as yours, in such a very competitive industry with major capital and personnel needs, stacks up against other industries in terms of investment potential. So, when I came across an article outlining how to measure potential investments, I could not resist the temptation to see how the material handling business measures up against the expected “results” of the four test categories noted in the article. These four calculations are used to evaluate the quality and value of almost any business or industry. Doing the calculations and reviewing the results will help quantify exactly what makes a given business great, average or poor. #1 High Profit Margins The question is how much cash you generated from operations, which is different than total changes in cash balances. The goal is to produce cash flow from operations against total sales of at least 20%. You can get “Cash Flow from Ops” right off your year-end financial report. Then run the calculation CASH FLOW FROM OPS/ TOTAL SALES = %. A 20% result puts you in World Class Business status #2 Capital Efficiency This could be a tough one. Let’s see. Capital efficiency is defined as how much capital the business needs to maintain its facilities and growth of its revenues. A capital efficiency company generates excess cash for distribution to owners or to support growth. What is expected is more excess cash available for owners and growth compared to Cap-X requirements. In other words, cap X of less than 50% of Cash Flow from Operations. In your case Cap-X covers rental assets, facilities and other long-term assets such as delivery equipment, shop machinery and technology. It does not include inventory as Cap-X. Using this definition makes it easier to attain. And remember, transferring inventory to rental assets should be considered Cap -X at that point. #2 Goal is to keep at least 50% of Cash Flow from Ops net of Cap-X for the year. #3 Return on Invested Capital This one is easy to calculate. Again, I would use the year-end report. It is a metric to determine the value and power to shelter your business from profit-eliminating competition. Calculate as follow: Equity plus LT Debt / net income. Goal is to shoot for 20% I suggest that any calculation using net income be normalized to eliminate “personal” expense as well as one-off transactions. The same type of adjustments you would make valuing the company for sale. I know some dealers use unclassified balances sheets, especially if they have large rental fleets, because the short-term amount of the fleet debt creates negative a working capital which must be explained to banks and other financial institutions. If you have an unclassified Balance Sheet, you may want to run this calculation both ways. #4 Return on Net Tangible Assets This is not as complicated as it sounds unless you have a material “goodwill” amount on the balance sheet. This calculation gives you the best overall measure of the quality of any business. It is known as ROE. The calculation is as follows: Total Assets – (Total Liabilities, Goodwill, Trademarks, other non-tangible assets) / normalized net income = Return on net Tangible Assets. Goal is to shoot for 20%. In other words, it is a return on equity net of intangible assets or ROE. I have mentioned in the past about the need to properly depreciate the rental fleet. My goal is to produce a net book value of the fleet at OLV (orderly liquidation value). If you write it down to zero book value, you have overstated expense as well as undervalues your fleet asset. For this calculation I would make the adjustments to adjust fleet value to no less than OLV. ROE combines brand impact, capital efficiency and quality of earnings and considers the results from the prior 3 tests. It also rewards companies that can borrow most of the capital they need. For a dealer, that is important. To summarize: Cash Operating Profit should be 20% or more No more than 50% of Cash Operating Profit used for Cap-X Return on Invested Capital should be at least 20% Return on Net Tangible Assets should be at least 20% Hit most of these goals and you have an above average company when compared to other industries. You can also use your normalized EBITDA number to compare to other industries as well. So, how do you think your industry fared in terms of these financial metrics? Great? Average? Or Poor? To get an answer to the question I reviewed the latest MHEDA DiSC report and find that the TOP 25% QUARTILE can meet or get close to the minimum percentages required for each metric. Surprised? I was to some extent. On the other hand, seeing
Del Lift Rental and Sales gives back to their community
The staff at DEL Lift Rentals & Sales in Boardman, Ohio dropped off a big check, boxes of toys and other supplies to Compass Family Services which oversees the Sojourner House for victims of domestic violence. Every December, DEL Lift employees choose a local charity and then start collecting for it, reaching out to customers for help. “This year when we chose the Sojourner House, I went on their website, I saw they had a full wishlist of things that they need for all their survivors and decided to put out some donation boxes at some of the companies that I’m close to,” said Cari Johnston, DEL Lift Rentals. The employees collected arts and crafts supplies and toys for kids at the shelter, as well as cleaning goods and kitchen utensils.
ARA announces Top Volunteer Awards
Each year, the American Rental Association (ARA) honors individuals for outstanding service to the association and the equipment and event rental industry. The following are recipients of this year’s volunteer recognition awards, which will be presented Feb. 9, 2020, during a ceremony at The ARA Show in Orlando, Fla. Industry Ambassador Award: Peggy DeFrancisco, Taylor True Value Rental-Inverness, Inverness, Florida This award recognizes an individual who has demonstrated long-term leadership and service to the association at the national, state, local or provincial levels. DeFrancisco has demonstrated tireless leadership serving at the state and national levels over the past decade. She served on the ARA of Florida board from 2010-2016, including a term as the ARA of Florida president. In 2016, she was elected to the national board as ARA Region Three director. During her tenure as Region Three director, she worked to strengthen the state associations in Region Three. This included reactivating dormant state associations in Mississippi and South Carolina. In addition to her work at the state and national levels, DeFrancisco also has served on the ARAPAC [ARA’s Political Action Committee] Council, the show task force and attended ARA’s National Legislative Caucus to advocate for equipment and event rental in Washington, D.C. Exemplary Service Award: Sarah Wilper, United Rentals, Bloomfield, Connecticut This award recognizes an individual or group who have made a significant contribution in a defined area of association service (such as government affairs, education, technology or workforce development). In 2017, while serving as president of ARA of Connecticut, Wilper was contacted by other Connecticut members, who, without notice, were being denied tent permits from West Hartford fire marshals and inspectors. She contacted the ARA, which in turn hired Capitol Consulting, a lobbying firm with relationships with the Department of Administration Services (DAS), the state agency responsible for oversight of state fire marshals and inspectors. Inaccurate training materials were determined to be one reason for the denial of permits. In response, and with the assistance of Capitol Consulting, Wilper coordinated with other Connecticut members to develop and present accurate information at a subsequent training session. An opportunity to submit a proposed change to the Connecticut state building code and fire safety code (3103.5.9) also was identified. Wilper took the initiative in obtaining an engineering study, which produced results supporting the industry’s tent ballasting “rule of thumb” of 10# sq. ft. This was confirmed by a second, separate engineering study, which Wilper and others in the industry worked tirelessly to facilitate by providing member and manufacturer input. The results and the final proposal were submitted to the DAS in June 2019. Over the two years necessary to research and submit this proposal, Wilper remained fully engaged in the project, providing knowledge and input, even though she no longer served as president of ARA of Connecticut and had temporarily left ARA general membership. She wanted to “see this through to the end.” Wilper’s knowledge and expertise, persistence, persuasion and skillful use of her relationships with others in the industry were essential to complete this work and produce the final results. Industry Impact Award: Steve Ledwell, Ledwell Manufacturing, Texarkana, Texas This award recognizes a manufacturer supplier and/or independent manufacturer representative rental industry professional who made a significant impact on the association and/or industry during the past two years. Ledwell and Ledwell Manufacturing are leading by example within their community by supporting various nonprofit organizations both financially and with the contribution of time. They also are strong advocates of workforce development and in November 2018, Texarkana College opened its new Workforce Training Center in honor of the Ledwell family. James Henry Russell, president, Texarkana College, said the Ledwell name in the community is synonymous with excellence, honor and superior work ethic. Some of the various ways the company has supported the community include: The local branch of Court Appointed Special Advocates (CASA) raffled off a tiny house this past spring to raise money for their organization. Ledwell, along with several other businesses in the community, donated time and materials to help build the house. Watersprings Ranch, a nonprofit organization in Texarkana, Ark., helps children in need and houses almost 50 children at a time on its land. The organization’s largest legacy resides in building safe, educational and happy homes for children who have not had that in their past. Ledwell employees have donated time, resources and more to the children of this facility. Alzheimer’s Alliance Tri-State assists Alzheimer’s patients and oversees Our Place Day Respite Center to provide help for those living with Alzheimer’s and their families. The group recently organized a function — Over the Edge — in Texarkana, Texas, that raised more than $65,000. The community came together to scale down the walls of a six-story building on the campus of a local university, Texas A&M — Texarkana. Members of the Ledwell team showed their support by participating in the downward climb, raising over $4,000 combined. The First Response Team of America contacted Ledwell Manufacturing in 2009. The organization had five pieces of equipment they wanted to fit on one trailer. Steve Ledwell had them bring the equipment to Texarkana and within 24 hours they were working with a team of designers, welders and fabricators to build a custom donated trailer that goes from town to town saving lives and restoring hope for countless storm survivors. Rising Star Award: Kyle Tegner, CERP, Special Occasions, Corvallis, Oregon This award recognizes a young professional who has demonstrated leadership at the grassroots level. Tegner’s mother started the business more than 30 years ago. While in middle school and high school Tegner washed tents, chairs and dishes. He then became a delivery driver when he was old enough to drive and continued working in the business throughout college. In 2013, Tegner purchased the business from his parents and then moved into a new building two years later. Inventory continues to grow and Tegner sees the company continuing to expand and possibly opening a second location in the future. His current focus is on
Ashtead Group acquires William F. White International
The Ashtead Group, the parent company of Sunbelt Rentals has acquired William F. White International, Canada’s biggest film, TV and digital production equipment rental business. The sale of William F White International (Whites) to Ashtead Group through an affiliate of its wholly owned subsidiary Sunbelt Rentals of Canada, Inc. (Sunbelt). Whites is Canada’s oldest and largest rental provider of production equipment, services and studio facilities to the motion picture, television, and digital media industries. Whites operates out of 13 locations across Canada and has over 450 employees. The company was established in 1963. This sale of the wholly owned subsidiary of Comweb Corp., based in Toronto, to Sunbelt will further support and accelerate incredible growth over the years. This growth is being fueled by the growing demand for media content worldwide driven largely by the thriving streaming services including Netflix, Amazon Prime, Crave, Disney+ and Apple TV+. Whites’ Chairman/CEO Paul Bronfman, commented: “This transaction with Sunbelt is a watershed moment for me personally and Whites. As Canada’s production industry undergoes exponential growth, Whites faces the most exciting opportunity in the company’s history over the next few years. I felt it was time for Whites to align itself with a firm that has the resources, scale and culture to create growth opportunities for our employees. This enables the business to better serve our customers’ ever-expanding needs, allowing Sunbelt to take Whites to the next level. This deal is in the best interest of Whites and my employees.” says Bronfman. Ashtead’s CEO Brendan Horgan, commented: “Whites significantly enhances our capability to provide equipment to the film and television production market where increased demand for content is driving high growth opportunities. The acquisition will provide significant opportunities to cross sell our existing product range in Canada and develop our offering to this end market in the US. This acquisition is consistent with our long-term strategy to take advantage of structural growth opportunities through both organic investment and bolt-on acquisitions. I would like to welcome all Whites employees who have built this business into the iconic brand it is today to the overall Sunbelt team. We look forward to working with them to deliver on the major opportunities ahead.” The acquisition of Whites officially closed on December 2, 2019. Paul Bronfman will continue in his role as CEO through April 2020 to aid in the transition. Effective immediately he becomes Co-Chairman of the Whites operating division executive board along with Ashtead Group CEO Brendan Horgan focusing on strategic growth of this exciting new platform. Paul Bronfman further commented: “We are proud of the company our entire team has built over almost 60 years, and grateful for the customers who have consistently entrusted us to meet their needs. As the industry changes, what won’t change is our valued clients remaining at the forefront of all we do at Whites. They should expect to receive the same great products and services, the same level of customer care and satisfaction and the same options and innovation as they always have; we promise and will over deliver!” Bronfman says. Lazard Middle Market LLC served as exclusive financial advisor to William F. White International Inc. and Dentons Canada LLP served as the Company’s legal advisor.
Durante Rentals hires new Sales Manager
Durante Rentals, a provider in construction equipment and industrial tool rentals, announced that Baron Selman has joined the Durante team as their new sales manager. Selman comes to Durante Rentals with over twenty years of sales and management experience within the construction equipment industry. He will be responsible for the leadership and strategic direction of the Durante Rentals sales team and developing new customer and market opportunities. “I am excited to be working with such an incredible team of dedicated professionals and for a company that puts their employees first,” said Selman. “My twenty years of sales experience is based on building long-term and strategic customer relationships which aligns perfectly with Durante’s goal of continued double-digit revenue and EBITDA growth,” said Selman. Baron started his career as a sales associate for his family’s forklift business. Since then, Baron has worked for both independent and major brand dealerships in various sales and operational roles. Most recently, Selman was VP of Operations for a national RER 100 forklift company, where he managed the day-to-day operations of their southern multi-branch business, expanded the customer base and increased customer satisfaction. “Baron brings culture and operational experience that complements our executive team,” said CEO Anthony Durante. “As we prepare for our next chapter of growth, we will look to him to provide leadership and direction for our sales team. He is a great addition and will help us achieve the aggressive goals we have set for the coming years,” said Durante. Durante continued, “This is an exciting time to be joining the Durante team and we expect to announce further key executive hires in the near future. We are building the framework for Durante Rentals to be successful in 2020 and beyond,” said Durante.
ARA names two for the Rental Hall of Fame
The American Rental Association has named Charles Neffle, All Occasions Event Rental, Cincinnati; and Thomas Founts of Bledsoe Rentals, Lees Summit, Mo., to the Rental Hall of Fame. Neffle and Founts will be formally inducted during a ceremony on February 9, 2020, at The ARA Show in Orlando, Fla. ARA created the Rental Hall of Fame in 2000 to foster an appreciation of the historical development of the equipment and event rental industry and the leaders who helped the industry grow and expand. Each year, nominations are accepted to recognize individuals who have made a substantial contribution to the industry. Neffle’s active service to ARA began in 1995 when he served on the Advertising and Marketing Committee. In the following years, there was no committee that he wasn’t part of. He moved on to serve on the ARA board, ultimately serving as ARA president in 2001-02. During his tenure on the board, he was instrumental in the development of the Certified Event Rental Professional program, assisting in the selection of ARA’s third CEO and the development of a strategic plan for the association. After his term as president, Neffle went on to chair the ARAPAC Council from 2004-2006, serve on the ARA Insurance Limited board from 2007-2009 and chair the ARA Foundation board of trustees in 2009-2010. Neffle was honored with the Meritorious Service Award in 1996 and the Distinguished Service Award in 2004. He was recognized with the ARA Foundation Loyal Donor Recognition Award in 2005 and the ARA Foundation James Keenan Award in 2007. Neffle is chair of All Occasions Event Rental. The company recently celebrated its 40th anniversary. Tom Founts began working in rental in 1970 and attended his first ARA convention in 1973 where he decided to make the rental industry his career. He has been dedicated to promoting the equipment and event rental industry and ARA on local, state and national levels throughout his 49-year career in the industry. He was an officer on the ARA board for five years and has served on more than 20 local and national committees and boards. During Fouts’ tenure on the Education Committee, he helped develop education, safety and management training systems and the “Making it Work” video training series. These paved the way for many Rental U courses in the areas of rental store management and day-to-day operations. He also helped develop the RenTech educational programs during a three-year term as chair of the General Tool Shared Interest Group. In 2002, Fouts presented “Operation ID,” which he structured to create “Intentional Development” of leadership for local and state associations. The program was presented at multiple ARA leadership conferences for local and state associations to recognize strengths and weaknesses, identify individuals with leadership potential and develop processes to support stronger associations. Following his service on the ARA board, Fouts served on the Rental Management Advisory Board and also served on and co-chaired the ARA Insurance Services Captive Board. Fouts has attended ARA’s National Legislative Caucus more than 20 times. On the local level, he worked to eliminate personal property tax on rental equipment and was successful in obtaining stronger theft of services legislation. Fouts is chair of Bledsoe Rentals and is coordinator of the ARA Past Presidents Group.
Aaron Birnbaum to succeed J. Bruce Dressel as Herc Holdings Inc. CEO
Herc Holdings Inc., a North American equipment rental supplier, announced that Aaron Birnbaum will succeed J. Bruce Dressel as chief operating officer effective January 1, 2020. Dressel will leave his position as senior vice president and chief operating officer on December 31, 2019. Birnbaum currently serves as the Company’s Senior Vice President and his appointment is in keeping with the Company’s succession plan. With more than 30 years of experience in the equipment rental industry — all with Herc Rentals and its predecessor business — Birnbaum has a wealth of experience gained from multiple responsibilities with Herc, including oversight of the Company’s Western, North Central and Canada regions as well as the Company’s Herc Entertainment Services® and Cinelease® units. Birnbaum also held leadership responsibilities related to the Company’s strategic planning, operational execution and M&A activities. As chief operating officer, Birnbaum assumes responsibility for the Company’s sales and operations teams, overseeing more than 4,500 employees and approximately 270 Herc Rentals locations. He will also oversee the Company’s ProSolutions® and Herc Rentals ProContractor™categories, its Herc Plus™strategic accounts unit and the direct and indirect procurement, marketing, and customer care functions. Birnbaum graduated from Arizona State University and received an MBA from California State University, Channel Islands. “I am pleased to know that our business will continue to be in exceptionally skilled hands as Aaron assumes his expanded role,” said Larry Silber, president and chief executive officer. “I am confident that his extensive experience as a leader in our company and our industry, his expertise as a foremost equipment-rental operator, and his deep knowledge of our markets and customers’ needs will add significant momentum to our company’s progress. “We value the contributions Bruce made at Herc Rentals over the past four-plus years and wish him well in his future endeavors. We appreciate that Bruce will assist in ensuring a smooth transition for the business.” Birnbaum will be based at the Company’s Bonita Springs, Fla, Field Support Center.
T.J. Wicklander named GM of ALL Sunshine Crane Rental
Two-decade veteran of Central Contractors Service in Chicago heads south A veteran of the ALL Family of Companies, T.J. Wicklander, has been named general manager of ALL Sunshine Crane Rental Corp. of Orlando, Florida. Wicklander brings two decades of crane experience forged in the highly competitive Greater Chicago area, where he served in a multitude of roles at Central Contractors Service, also an ALL branch. Wicklander began his career with the ALL family 19 years ago as a parts runner for Central Contractors Service. Over the years, he also worked in operations and dispatch and spent a decade and a half in sales before most recently serving as manager of the Alsip, Illinois, location. In addition to the insight gained from having served in multiple capacities with the ALL Family of Companies, Wicklander’s promotion is owed, in part, to his long tenure in sales and his battle-tested experience in competitive construction markets. All told, Wicklander is well-prepared to lead ALL Sunshine Crane Rental in Orlando, one of the fastest-growing cities in the U.S. “Working with [Central Contractors Service General Manager] John Martello was an amazing education in the crane business,” said Wicklander. “The ALL Family is a place where the sky’s the limit on your success if you take advantage of the opportunities given to you. We have the top talent, the best equipment, and a well-earned reputation for excellence that I’m proud to be a part of.” Wicklander’s path is not uncommon; in fact, he’s a great example of the company’s commitment to developing excellence from within. “T.J. is a crane industry veteran with a wealth of knowledge to share,” said Michael L. Liptak, president of the ALL Family of Companies. “His path is what makes ALL an industry leader. We know that the best employees are the best problem solvers. So those are the people we hire. Then we train them to succeed and develop their skills so they can grow with our company.” The company pairs new hires with seasoned veterans to give them a foundation like no other. That support, said Liptak, is the reason their employees stay and thrive. Wicklander said the ALL name is strong in the market, and he plans to build on that success with the company’s patented mix of fleet breadth, crane know-how, rent-ready condition, and world-class service and support. “This is a market where jobs are big and ever-changing,” said Wicklander. “The Orlando area has seen sustained, explosive growth for years, and I’m looking forward to digging in.”
Equipment and event rental revenue forecast to outpace economic growth
The equipment and event rental industry in North America is expected to finish the year with total revenue up 5.35 percent to $61.56 billion, the first time combined rental revenue for Canada and the United States has surpassed $60 billion, according to the latest forecast released by the American Rental Association (ARA). The latest updated figures, released Nov. 7, show rental revenue in the U.S. forecasted to be $56.02 billion in 2019 with Canada generating $5.54 billion in revenue from rentals of construction and industrial, general tool, and party and event equipment. The five-year forecast calls for continued growth for U.S. rental revenue through at least 2023, reaching $64.1 billion that year, and for Canada to reach $6.35 billion. Although the outlook calls for slightly slower growth rates than the previous quarterly forecast in August, the industry continues to outpace the general economy in the U.S. where gross domestic product (GDP) growth slowed from a 3.1 percent annual growth rate in the first quarter to 2.0 percent in the second quarter. The third quarter GDP growth estimate is 1.9 percent. According to IHS Markit, the forecasting firm that compiles data for ARA and its ARA Rentalytics subscription service, new tariffs on U.S.-China trade flows and diminishing fiscal stimulus could contribute to a slowdown in annual real GDP growth from 2.3 percent in 2019 to 2.0 percent in 2020 and 2021, and 1.7 percent in 2022. “Despite signs of a slowing economy, the equipment and event rental industry continues to perform well. The most important thing for rental companies to do is continue to execute their business plans and aggressively manage their operations,” says John McClelland, Ph.D., ARA vice president for government affairs and chief economist. “With chances of a recession in the next 12 months relatively low at 35 percent, rental businesses should be able to continue to grow revenues and maintain strong balance sheets,” McClelland says. Scott Hazelton, managing director, IHS Markit, says the next 12 to 18 months will feature significant uncertainty around trade and fiscal policy, compounded by the U.S. elections. “Rental firms are well positioned for uncertain times. The reluctance of construction and industrial companies to invest in new equipment under these circumstances, combined with a still expanding economy, suggests that the opportunities for equipment rental will continue to grow, albeit at a slower pace than the past few years,” Hazelton says. According to ARA, Construction equipment rental in the U.S. is forecast to grow 5.2 percent in 2019, with growth rates of 2.3 percent in 2020, 3.0 percent in 2021, 3.7 percent in 2022 and 3.1 percent in 2023 to reach $43.9 billion. The growth rates for general tool include 6.8 percent in 2019, 3.8 percent in 2020, 3.96 percent in 2021, 5.2 percent in 2022 and 2.9 percent in 2023 to reach $15.7 billion. In party and event, expected growth rates are 6.5 percent for 2019, 5.7 percent in 2020, 5.6 percent in 2021, 5.1 percent in 2022 and 5.5 percent in 2023. Investment in equipment by rental companies in the U.S. is expected to remain relatively flat each year with small declines in spending in 2020 and 2021, followed by slight increases in 2022 and 2023 to reach $14.55 billion. In Canada, equipment and event rental revenue is expected to increase 2.4 percent in 2019 to reach $5.54 billion, with growth of 3.4 percent in 2020, 4.6 percent in 2021, 3.2 percent in 2022 and 2.7 percent in 2023 to reach $6.36 billion.
United Rentals launches United Academy 2.0
The improved learning management system offers increased ease of use and new features At the 2019 Total Control & Innovation Conference in San Antonio, Texas, United Rentals announced the launch of a new and improved version of its cutting-edge online training platform, United Academy. With more than 420 online, in-person and blended courses, including operator training and jobsite safety courses, United Academy was created as a world-class blended learning model for today’s workers. Since its launch, United Rentals has continued to seek ways to improve methods of delivering and tracking training. United Academy 2.0 is one of the company’s latest examples of digital innovation. Better, faster, easier The platform is now faster and easier to use, with several new features. Customizable and auto-generating compliance reports can be easily configured with the report wizard tool and distributed automatically to specific people on predetermined schedules, such as daily, monthly or yearly. Managers can include calls to action in the body of auto generated emails to instruct recipients on what to do with the report. “Having a training plan that is tailored for the job that the person is going to do for you, and for the place that the person is going to work, becomes very important if you want to be efficient,” said Bal Guerrero, director of United Academy. Ordering training is now easier because users can sign on with the same email address and password they use on the United Rentals platform, and a United Academy account can be linked to a United Rentals corporate account. “Now you can do the transactions self-serve,” said Guerrero. “You don’t need to call anybody, you don’t need to email anybody, to complete the transaction. If you need online training late in the day for your people, or on the weekend, you can go online and purchase that training.” A new mobile app delivers the functionality of the United Academy website, giving managers the ability to access training profiles for the people they manage, as well as purchase and assign training transactions, all on the go. It also allows them to verify training compliance for groups of people at once. Coming soon Available soon from United Academy are virtual reality competency assessments that leverage forklift and aerial lift (MEWP) simulators. “Imagine you have a site that has many operators of scissor and boom lifts, and they come with their card and they say, ‘I know how to work.’ How can you be sure? Instead of needing to have a trainer double-check the competency of that person, you can have that person complete the simulator competency assessment to help determine whether that person is operating safely and areas where the person may need to improve,” said Guerrero. VR simulators can also be used after a safety incident to help evaluate or refresh an operator’s skills. All assessments are captured in the learner’s training profile. Finally, 2020 will bring risk-based micro-learnings. “Micro-learnings are a training solution that comes from the principle that when a human listens to or is exposed to a significant amount of information, he or she remembers only a portion of that information, and that portion shrinks every day it’s not used,” Guerrero told Project Uptime. United Academy’s micro-learnings consist of two- to five-minute videos, sent to workers and supervisors on their phones, tablets or computers. “The concept of microlearning is providing bits of training just before they go do the activity,” said Guerrero at the conference. The videos focus on the key risk controls workers need to understand. As today’s projects grow larger, worksites become increasingly complex, and skilled labor markets get tighter, working safely and effectively requires increasingly sophisticated solutions. United Academy 2.0 is one of numerous examples highlighted at the conference of how United Rentals is innovating in order to provide some of those solutions. Also unveiled was an exclusive preview of the United Rentals Mobile App, to be released in 2020. ‘We’re investing heavily in technology because we recognize that digital is critical to transforming how work gets done,” noted Paul McDonnell, executive vice president and chief commercial officer, in his keynote address. When digital delivers increased efficiency and safety, it’s more than a competitive advantage; it’s a potential lifesaver.
Sunbelt Rentals recognized as one of Nation’s Top Military Friendly® Employers
Sunbelt Rentals has been named one of the nation’s top Military Friendly® Employers by VIQTORY, a service-disabled, veteran-owned small business that connects the military community to civilian employment, as well as providing educational and entrepreneurial opportunities. The award comes following years of concerted effort and dedication from Sunbelt Rentals to provide employment opportunities for our nation’s hard-working service men and women. “We’re very proud of this recognition and for the incredible work ethic and new ideas we get from our veteran employees every day,” said Brad Lull, Executive Vice President of Central Operations at Sunbelt Rentals. Former veterans who are now full-time employees at Sunbelt Rentals appreciate the recognition and what’s been done to make it happen. Our branch in Jacksonville, N.C. — located just a few miles from Marine Corps Base Camp Lejeune — has been particularly successful with hires from the military. Their current staff includes six Marine Corps and Army veterans with nearly a century of combined military experience. “This location sets a great example of how contributions from veterans strengthen our organization,” said Carson Hagar, Director of Recruitment Services at Sunbelt Rentals. “We continually strive to increase the scores and metrics used to designate this award. We’re proud of the progress that we’ve made, but there’s so much more we can do.” Why Work at Sunbelt Rentals? Sunbelt values safety, action, teamwork, and innovation: ideals shared by veterans. They find a fulfilling workplace where they can enrich our culture and contribute to the “Power of Sunbelt.” It is Sunbelt’s goal to deliver on a promise to offer a rental experience that’s defined by availability, reliability, and ease. Veterans understand the importance of reliability better than most and take our promise to heart. In roles where they can embrace the strengths that served them in the military, veterans can take pride in their civilian careers as we grow together. “If you’re a military veteran looking for a civilian career – we want to hear from you,” said Marcella Lozano, HR Regional Coordinator at Sunbelt Rentals. “With nearly 900 locations, we aim to be a premier employment option for veterans across the country, and we strive to provide the best support for our veteran employees and their unique needs.” Veterans wishing to join the Sunbelt Rentals talent network can text “Sunbelt” to 51893 to see current job postings and get alerts about opportunities in different markets.
United Rentals announces expansion in Charlotte adding 150 new jobs
United Rentals has announced a major expansion of its operations in Charlotte, N.C., aiming to bring 150 new jobs. The company has completed a long-term lease for a new corporate campus in University Research Park. The company will also build a command center for the United Rentals Emergency Response Team in the new building. The new campus will be in a nearly 100,000-square-foot building at 10330 David Taylor Drive in University Research Park, the company announced. It expects to be in the building by mid-2020. “Charlotte has a terrific talent base that can help us support our growing business and serve our customers,” says Craig Pintoff, EVP, Chief Administrative and Legal Officer, United Rentals. “The new Charlotte campus demonstrates our commitment to providing a world-class, collaborative work environment for our employees and reflects the optimism we all share for a bright future for United Rentals.” The campus features a three-story office building with flexible office space and pad space for an additional building for future growth. The facility will offer United Rentals employees modern work and collaboration areas, such as collaboration areas, training rooms and spacious break rooms.
Sunbelt Rentals acquires King Equipment
Since 2007, King has served the greater Los Angeles area as a provider in aerial equipment rentals. Through a fleet mainly comprised of scissor lifts, man lifts, and reach and industrial forklifts, the business serviced the needs of a diverse range of customers, including electrical, structural steel, plumbing and HVAC contractors, as well as the construction and public utility sectors. Sunbelt Rentals are excited to welcome King Equipment to the Sunbelt Rentals team. This exciting development enlarges Sunbelt Rentals’ California footprint and provides King’s valued customers with access to a more diverse product and service offering. Backed by an expansive national network and a fleet in excess of $10 billion, Sunbelt Rentals is one of the largest rental companies in North America and services a variety of customers, including commercial, residential, industrial and specialty contractors, through a highly-diversified mix of rental equipment. With the addition of these new General Tool and AWP locations in California, Sunbelt Rentals can better serve the greater Los Angeles market by providing an effective rental solution for any project or job, including infrastructure, residential or commercial construction, facility maintenance, or homeowner applications
Pinnacle Cranes acquired
U.S. sales and rental company Pinnacle Cranes has been acquired by Tecum Equity, a fund supported by Western Allegheny Capital – the family office of Pittsburgh based Cliff Forrest, the owner of Rosebud Mining. Established in 2001 as a division of CTE (Carolina Tractor and Equipment) Pinnacle is based in Charlotte, North Carolina and is a leading Link-Belt and Manitex dealer covering North and South Carolina. It is also a dealer for Shuttlelift carry deck cranes. A transition plan has been put in place by Pinnacle, CTE, and Tecum that will guarantee that the company continues unchanged while it looks for a new headquarters location. Tecum also owns a stake in Tidewater Equipment and hydraulic hose supplier Powertrack International. Pinnacle chief executive Jim Mackinson said: “The Pinnacle Team looks forward to partnering with Rosebud and Tecum to continue the great growth journey we have experienced in our markets. We will continue to operate as Pinnacle Cranes out of our current service facilities in Charlotte and Raleigh to provide customers with the same exceptional quality and service they have come to expect from Pinnacle”. Cliff Forrest added “We are excited to partner with the employees of Pinnacle to continue building on its success and key partnerships with Link-Belt and Manitex. We are confident the culture of great customer service will continue, and we look forward to supporting Pinnacle’s growth over the long-term”.
Durante Rentals appoints Harrington as Chief Operating Officer
Durante Rentals announced the appointment of Liam J. Harrington as its Chief Operating Officer. Liam joins Durante Rentals with over eight years of experience in the equipment rental industry, previously working for two multi-billion dollar companies currently in the RER Top 10. Most recently, Liam spent three years as a senior vice president at a $15 billion transportation and logistics company. “My passion has always been in the equipment rental business and I am very excited to be returning to this industry,” said Liam. “I have a tremendous amount of respect for the founders that built this truly entrepreneurial and innovative company. I believe this is just the beginning for Durante Rentals as we embark upon this next chapter together with our equity partner Clairvest.” Liam continued, “We have the best employees, strategic customer relationships and an unmatched brand. Scaling this business is exactly the operational opportunity and challenge that I have been looking for both as an employee and as one of the owners. We are focused on expanding outside of the tri-state market, achieving our eighth-straight selection to the Inc. 5000 list of America’s Fastest Growing Companies and joining the RER Top 50.” As Chief Operating Officer, Liam will be responsible for managing day-to-day operations, scaling the business to support larger customers, improving profitability and integrating future acquisitions. Liam’s extensive industry knowledge and experience will greatly contribute to Durante’s long-term growth and expansion into new markets. “We are excited to welcome such a proven executive who brings a wealth of experience to grow our operations and improve the customer experience,” said CEO Anthony Durante. “With Liam heading operations, we are extremely optimistic about our organic and inorganic growth opportunities for the rest of 2019 and beyond,” said Anthony. Liam has a B.A. in Economics from Stony Brook University, an M.B.A. in Finance from The Ohio State University and a M.S. in Financial Mathematics from the University of Chicago. Liam, his wife Tara, and two children reside in Westchester, NY.