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If you put a bunch of smart, successful rental people from construction equipment and tool rental companies, of all sizes, in a room and asked them about the state of the industry - its problems, challenges, future, positives, negatives and mysteries - what issues do you suppose you would hear about most? Consolidation? Competition? Rate erosion? The entry of manufacturers into the rent-to-rent industry? Relationships with equipment dealers? Economic forces and pressures? Yes, probably you would. And in the 2000 Rental Management Industry Forum in Anaheim, we did.
But the high note of that discussion was something we would not have predicted: how clearly and strongly the participants expressed their belief in the value of cooperation between large and small rental companies and the positive contributions of the consolidators to the industry as a whole. That people hold these views is no surprise - it makes good sense. What we would not have predicted was how important this relationship between large and small rental companies has become, in everyone's mind, after the last couple of years of robust growth and consolidation.
Richard Young, Harvey, La., mentioned the "tremendous opportunity" to partner with the big boys via sub-rentals - "It's a great relationship" - and the millions of dollars the large companies are spending on marketing: "It's going to help us all." Jeff Wearing, Decatur, Ga., mentioned the "better image" and awareness that the large, national chains have brought to the rental industry. Richard Paquette, Chateauguay, Quebec, Canada, and 1999 president of A.R.A., said: "There's a lot more cooperation going on out there than anybody realizes. And everybody seems to feel that there's a place for everybody else in this industry."
In a separate RM forum for the event and party rental people, there was universal applause for the A.R.A.'s initiatives in training and certification, which should encourage employees to think in terms of a career in rental, not just a job. And many event/party people are now saying that consolidation in that industry is fully feasible and just a matter of time. If so, A.R.A.'s certification initiative will become even more crucial to the progress of the party industry. Meanwhile, the party certification development will help point the way toward expanding certification to benefit other segments of the industry, and that would add value to rental companies of all sizes.
It seems that the rental industry is not flying off in different directions like the universe after the Big Bang, after all, but actually the parts are coming together, for the benefit of all - even construction and party can find synergy and common value in what's happening these days. After listening to the people at these two forums in Ana-heim, it seems clear that this outlook is no pipedream. If you'd care to add to the discussion or take issue with any point, write us a letter!