Local governments - all 85,548 of them in the United States - could be a steady revenue source or even a business bonanza for Rental Management readers. Nationally, rental center managers could take in more than $3 billion in revenue from local governments in 1997. This estimate, based on miscellaneous equipment renting, including both construction and medical, is based on U.S. Census Bureau and Government Product News surveys and calculations.

"We have a very good working rapport with probably 40 local governments in the area," explains Don Schmidt, president of Adon Equipment, in the Cleveland suburb of North Olmsted. Adon has been in business 29 years and employs 18 people year-round.

Schmidt's firm rents a variety of equipment to local governments in the area - including excavators, concrete breakers, power buggies for moving concrete, compressors and portable light towers. City service and public works directors also send their crews to Schmidt's shop for shovels, cutoff saws, chain saws, personal safety gear - all kinds of equipment that cities need.

One key to successfully doing business with governments, says Schmidt: "You have to understand how the budget cycle works in small cities and towns. Near the end of their fiscal year, payments may be a little slow, but you will always get paid. Govern-ment business is stable in the fact that you don't have to sue for your money - you're going to get paid. Their checks never bounce."

A dedicated sales force is also crucial to landing government business, reports Jacque Redus. Redus is director of marketing at the Houston headquarters of Prime Equipment, which operates 115 stores in the United States, mainly in the south and west.

"We have 200 outside salespeople who are knocking on doors, working with customers, and actively involved in the bidding process," says Redus.

"Our salespeople are also active in a lot of groups, like the American Public Works Association and contractors' groups, where they gain a foothold in local governments, and hopefully develop a relationship with city managers, public works directors and other officials."

Local governments rely on Prime for air compressors, lifts, welding gear, concrete saws and breakers and many other kinds of equipment that's often needed in a hurry, says Redus.

"Be flexible, and try to meet local governments' needs," advises Robert Salinas, assistant manager of A to Z Rental Center in Austin, Texas.

"We try to fit their schedule, and will bill individual city departments separately, if that's what it takes," notes Salinas. "Steady" is how Salinas describes the local government market: "Over the last 14 years, the city has done business with A to Z Rental maybe five or six times a year, and the county about the same."

Power tools, trenchers and power washers are the kinds of equipment that A to Z Rental dispatches to governments in the area.

"A.R.A. members should check to see if their local or regional A.R.A. group sponsors any exhibits where they might get some attendees from public works departments or cities," urges Mike Moore, A.R.A.'s director of field services.

He adds: "Most municipalities of any size will have a local trade or business show, or lawn and garden show where our members can promote the rental concept to local governments."

A.R.A. members and associate members may also want to consider attending or exhibiting at the annual forum sponsored by the National Institute of Governmental Purch-asing (NIGP). Contact the NIGP's Gayle Gibbons at (703) 715-9400 for more information.

Speaking of shows, rental centers should consider staging workshops where they can show off the latest technology.

John Lehlbach, director of public service in the city of Westlake, Ohio, reports that the rental center in his area recently invited sewer and public works officials to view a demonstration of a power snake with camera and sensing attachments. The new unit permits easier viewing of underground sanitary sewer connections.

"This guy's pretty knowledgeable - and caring about his customers," Lehlbach concluded after sitting in on the rental center manager's snake demonstration. This is an ideal opportunity to develop credibility among prospective customers.

The city of Westlake's public service department rents concrete cutters, power wheelbarrows and various other tools from rental centers in the area, depending on the work being done and the need for extra tools.

"It's a good way to save taxpayer dollars when you need an expensive piece of equipment for the short term," Lehlbach says.

Michael Keating is research manager for Government Product News and Government Procurement magazines in Cleveland, senior research analyst for Penton Research Services and author of Introduction to the Government Market: Local, State and Federal, 3rd Edition.