Editor’s note: EDCO – Equipment Development Co., Frederick, Md., was launched in 1959 with the creation of the surface grinder. The company currently manufactures an extensive line of saws and surface preparation equipment for the equipment rental industry. Housed in an 85,000-sq.-ft. warehouse, the company recently converted to a lean manufacturing method to streamline production. EDCO has had a long-term relationship with the American Rental Association (ARA) and has exhibited at The Rental Show for 52 consecutive years. Leo Swan, EDCO’s chairman of the board and CEO, was named to the Rental Hall of Fame in 2005. He recently met with Rental Management at EDCO’s headquarters and says he still enjoys the business. “I’ve had a tremendous amount of friends in the rental industry and when we were building the business, I did the traveling and selling. I enjoyed the business. I still do and I think it’s a great opportunity for someone who likes to get their hands dirty,” he says. The following questions were answered by a panel from EDCO, including Swan; Sue Stanczyk, his daughter; Frank Stanczyk, co-president and Swan’s son-in-law; Jason Stanczyk, Swan’s grandson; and Rich Quickel, EDCO’s sales manager.

RM: How much of EDCO is dedicated solely to rental?

Leo Swan: Much of our business is from the rental industry. We market directly to rental people. We’ve created and maintained a good reputation for ourselves and we intend to keep it. Anything we manufacture is built for some part of the rental industry. From the beginning, we’ve always developed our products to withstand the use and abuse of rental, and we never changed that philosophy. That’s made us successful and we’re very happy with that.

RM: How have the rental owners and customers changed?

Frank Stanczyk: Like with many industries, we operate in a “need it now” culture. Rental store owners demand answers immediately. Fueled by the Internet and large corporations entering the industry, it’s become fast-paced and more competitive. Accessing decision makers was easier when the majority of rental stores were single locations as they were the ones running the counter. Now we have to work even harder to show the industry how our equipment will ultimately benefit them and their customers. It’s our responsibility to provide customers more training and demos. If we can’t get to them personally, the Internet and videos help. We have to train them so they can answer their customers’ questions and make money. In the end, that’s how EDCO makes money.

RM: How has the economy affected EDCO’s business?

Swan: We’re taking our lumps like everyone else. Business is down this past year, about 10 to 12 percent, but we see light at the end of the tunnel and we’re hoping this coming year things will get significantly better. We didn’t lose any money, but we didn’t make as much as we wanted.

RM: Why did EDCO switch to lean manufacturing?

Sue Stanczyk: There are a lot of advantages to it. The company implemented lean manufacturing three years ago and it’s doing well. It’s easy to overlook wasteful tasks within your manufacturing process, but lean manufacturing not only makes you pay attention to those time-wasting issues, it also gives you the opportunity to eliminate them. In the end, if you stay with it — and that can be a struggle sometimes — the improvements will pay off. It has been a big change from the way we used to run our shop. For years, we were known for providing great products, but with long wait times. Now, we manufacture the same products with short delivery times. Our staff has done a good job of implementing lean thinking. In the factory, you see 10,000 sq. ft. of empty space available to lease — that’s because of lean manufacturing. We’ve leaned out our processes, condensed operations and made our space more efficient. Lean is not about eliminating jobs; it’s about taking the same people and empowering them to work smarter.

RM: How has maintenance changed for customers?

Frank Stanczyk: That’s hard to say because we try to manufacture equipment that requires a minimum amount of service. Everything we build is overbuilt. Our products last for years and that’s great for our customers. While we wish they would have a need to buy more often, making the customer happy is the whole point and we’d rather them trust our products than have to purchase replacements. We try to make our products as foolproof as possible, meaning the purchasers can do the repairs themselves and hopefully do them while on the job.

Jason Stanczyk: What has changed is customers want to see how to perform machine maintenance instead of just reading about it in a manual. The sales department recognized this a few years ago and incorporated video into our advertising. Now, every core product is shipped with an accompanying training DVD. The videos have information on maintenance, proper usage, accessories and related products. We also have a top-notch website full of videos and helpful information. We’re currently working on other Internet-related projects to help our customers, but with the Internet age, you can’t forget about our customer service people. They are educated and will answer your questions when you need them.

RM: How has the market changed for your product?

Rich Quickel: With the influence of technology, the amount of mergers and its significant growth, the market is a new place. We are looking at several niches for expansion. Concrete polishing is a good example. We have introduced our new brand, CONTRx Systems. Our systems give smaller contractors the opportunity to get into the polishing business and we hope we can grow with this young industry. Another avenue is industrial cleaning and that has been good for us. Competition has become a factor, as everyone wants a piece of the rental business.

RM: What is unique about EDCO?

Swan: We are unique because we are completely family owned. My partner, Ed Harding, and I started the company and with great employees, our families still operate the business. Also, we have always and will always put the customer first. That’s unique because while some businesses just say that, we actually do it. When we sell our products, we always stand behind them. That makes life easier for rental owners. Our staff is always here to assist our customers. When you call EDCO, you talk to a real person who has answers. Customer service has always been our No. 1 priority and it will continue to be.

RM: What do you see for EDCO’s future?

Frank Stanczyk: In the future, we’d like to see the company advance into other areas. With the down economy, you’re less busy and you look for things to take up time. As the economy comes back, which it is, that becomes a different story. You have to incorporate the new ideas and be careful about what you take on. However, with lean manufacturing, we have the ability to do other things. We welcome opportunities, but all new ideas would have to relate back to our core customer, which is rental.