Vince Gauthier
Director, Region One

1 
Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, Vermont

A.R.A. Region One seems to be growing along with everyone else, as everyone has jockeyed around in the market to find a safe haven or niche to keep their company growing. I’ve heard of growth of as little as 2 percent up to 38 percent. This probably is indicative of where people have worked into a niche area. 

Everyone in the event and party business seems to be real satisfied with their year and most are already booking up for next year. There is plenty of opportunity ahead.

The most common complaint is, “We can’t find any good help.” Perhaps some of us should get out of the equipment and party rentals and start up personnel rental.

Highways and bridges seem to be most consistent. A lot of new malls and large buildings seem to be coming online as scheduled. Elections do not appear to have changed the state of federal projects at all. 

Here’s looking for a prosperous 2001. Make sure you buy plenty of equipment.

The rental business is great! From all indications that I hear, most have had a great year. Some have personnel problems and some, financial problems, but we’re problem-solvers. If it were easy, everyone would be doing it.

Carl Newman
Director-elect, Region Three

Timothy Hewitt 
Director, Region Four

The business outlook in Region Four is very good. Most rental people I’ve spoken to agree that the economy is good and they don’t see any reason for things to change. The low unemployment rates cause us to find inventive ways to hire and keep employees. The report I hear most is that rental store owners are smiling when they go to the bank. 

Now, enjoy the fruits of your labor. Register today for the 45th Annual A.R.A. Convention and Rental Trade Show. Together we’ll learn how to go “Above and Beyond” by talking to our peers and to the exhibitors about their products and services.

Business in Region Six was very positive the first seven months of 2000. September and October started to slow down in some areas because the weather had been so good — no storms or high winds to create the need for repair work, so outdoor jobs slowed. But now, with that in the past, we should be checking out our inventories and check out what is new in the marketplace. The place to do all of this is the A.R.A. show in Orlando, Feb. 26 to March 1.

Ivan Barthel
Director, Region Six

Tom Price
Director, Region Seven

I have talked with different state association rental stores in Region Seven and have the following economic forecasts for the upcoming year.

New Mexico has remained steady this year for large and small commercial building, but housing has leveled off except for the higher-priced residential areas, which seem to be growing. Next year looks to remain steady in commercial construction.

Utah has had a big drop this year in construction in several areas, while others have had a steady year. Most feel a leveling off for the upcoming year. Salt Lake City is busy preparing for the upcoming winter Olympics.

Colorado has seen commercial construction stay steady, but there has been a decline in residential. Many expect next year to stay about same, or possibly slow down a little.

Arizona has been up and down this year, depending on the area. Commercial is staying steady and housing is leveled out this fall. Most feel that a slowing trend in coming in 2001.

Wyoming has seen ups and downs in the past year and is looking for a leveling off for the upcoming year.

The economy in the Pacific Northwest remains strong in 2000 and the outlook is good for 2001. Infrastructure construction continues to increase to try to catch up with the population expansion in our area through the 1990s. Commercial construction remains strong for most of the Northwest and it appears that strength will continue into 2001. 

There are two factors of concern in our region. In most areas, housing starts and sales are down slightly and the low unemployment level has made hiring new employees more difficult. Many rental businesses rely very strongly on home construction and homeowner improvement related to home sales to increase the need for their equipment rental services, and good employees are essential to an efficient operation.

For most of us in the Northwest, 2000 has been a good year and we see that trend continuing on into 2001.

Dean Eklund
Director, Region Eight

Doron Broadfoot
Director, Region 10 (Canada)

The business climate across the 3,900 miles that span Region 10 could be categorized as one of cautious optimism. Certainly, some areas have a much stronger outlook than others. The province of Alberta, with its strong oil and natural gas economy, is undergoing unprecedented economic growth. The world price of oil has benefited this economy tremendously. Other provinces have not been as fortunate, especially where the economy is predominately governed by agriculture. The relatively low world prices of grain crops, accompanied by the high input costs (such as fuel, fertilizer, chemicals, etc.) have slowed the growth in these areas. 

Canada’s economy certainly relies to a large degree on its exports to our friendly neighbour to the south. With a strong economy for the year 2001 from the United States, this will certainly help all regions that do export heavily, especially Ontario. With an expected growth in Canada’s GDP estimated in the 3 percent range, the overall economy should be quite healthy during the next fiscal period.

This cautious optimism should translate itself to the rental industry in Region 10. I believe that many rental operators will approach the Orlando A.R.A. show as a buying show. Everyone is looking for that new market, or for the resources to expand on present markets. What better way than to attend the largest exposition of rental products in the world, supported by the educational benefits afforded by the many seminars and learning experiences offered by the American Rental Association’s annual convention and exposition.

I personally invite all Region 10 rental professionals to attend the Orlando show and convention. I look forward to meeting with you and learning together. Bring your families and enjoy the tremendous entertainment opportunities that this unique venue has to offer to all of us — the young and the young at heart. I truly hope to see you there!

For 2001, I would project that the party rental segment will grow at a faster pace than general tool and construction. In the South, the sale of new and existing homes, as well as commercial building, has slowed considerably. I feel that will have an effect on the general tool and constructions segments. I would anticipate more mergers and acquisitions, but for the most part, I feel that money on Wall Street has dried up and only the strong will survive. So you could say mergers and acquisitions are on the back burner.

We are also coming to an age where some of the companies that were bought up some three years ago have non-competes that are expiring. I believe this signals new growth in general tool and construction. With old owners now out of the rental industry, you will soon see both segments rebounding.

I expect that the target market for new growth in independent rental stores will be homeowners, the most slighted segment in our industry.

Frank Wilson
President

Richard Paquette
Chairman of the Board

The survivors of the tumultuous changes that are going on in the rental industry will undoubtedly be those who can adapt the quickest and the best. With the Internet bearing down upon us like a runaway locomotive and threatening to radically alter virtually every facet of our lives, we must adopt a new way of thinking. 

All planning we now do must incorporate a review process as an integral part of the original plan, not an add-on option. Every action must now be examined for its relevancy, efficiency and output. 

I see “the big picture” as being one of massive opportunity, and the reward will go to those who best execute the details of the many stages towards success. 

Of the three assets of a rental company, the customers and equipment can be acquired much faster than the employees these days, so we should be treating our employees like gold. 

This won’t change in the near future, it will only intensify. Question any rental operator who wants to expand his business on why he or she hasn’t done it already and you’ll face a tirade about where to find competent help — the No. 1 concern of rental companies everywhere.

Money, tools, locations, renters — are all available, but we can’t staff a service business with robots. We deal with live people, not the next widget coming down the production line.

Unlike the core philosophy of the popular game show that’s now running on television, there is no “final answer” in the rental game that we’re currently playing. 

This one’s for keeps, folks, and the million(s) will go to those who capitalize on the opportunities without running out of lifelines.

I was talking with Bob McClelland recently. As a manufacturer’s rep for Kansas and Missouri, he currently has 14 new startup independent rental stores he is helping with beginning inventory. Most of them are in the general tool and light construction category. This seems very interesting to me in view of all of the consolidation and sellouts we have seen in recent years. 

Bob seems to think that a lot of it is a result of the increased public awareness to rental that is a result of the consolidation and stock market awareness in the rental industry. Whether or not this is a national trend remains to be seen, but it does point to an enlarged potential member base for A.R.A., which will help keep our association strong. 
At our most recent local association meeting, we did an informal poll as to how the members’ businesses were doing vs. one year ago. The response was anywhere from a 15- to 30-percent increase in sales for most, and all reported larger profits. 

Aside from the economy we are in, I believe the independent rental dealers that are fighting it out in the trenches with all of the increased competiton are learning to run more efficient, and, therefore, more profitable companies. 

They are learning the importance of a strong marketing plan, they are renewing their inventory at a faster pace and they are training and developing their staffs to achieve higher levels of professionalism. 

Now is truly an exciting time to be in the rental industry, and I look forward with great enthusiasm to our future.

Tom Fouts 
Chairman, General Tool
and Equipment Services SIG
and Vice President-elect

Maun Petersen, Chairman, 
Party and Event Services SIG

I have had numerous conversations in about every area of the country and have found that everyone in party is having a banner year. It seems that everyone — as in consumer and business — is discovering party and events as a great potential for their needs.

Not only is everyone having a great year businesswise in volume, but nevertheless, they are investing in new additions to their businesses. It seems that more party people than usual are either moving into larger facilities, ex-panding their existing facilities or separating 

party out of their equipment rental.

I keep thinking the bubble will burst, but the growth seems to continue. Usually you will find one or two who say business is flat or about the same, but this year everyone talks of having their best year ever. 

The best part is that everyone seems to think the best is yet to come. 

I, for one, agree — I think “we ain’t seen nothing yet.”