There were more expressions of optimism at last month's American Rental Association show in New Orleans than I've seen in some time in the rental industry. Although show attendance was down — as much as 25 percent according to executive vice president Christine Wehrman — most manufacturers I spoke with at the show said they were pleased with the quality of the traffic at their booths. Many said they'd written as much business on the first day or two than they had during the entire show in Orlando a year earlier.
That's a good sign for all concerned. It's good for the manufacturers, many of whom were beginning to have serious doubts about the ARA show's viability as a buying venue. The dynamics of equipment buying have obviously changed for a lot of reasons, but the fact that a high percentage of show attendees had clearly come to buy, or at least to very seriously shop, was well received by industry suppliers. It was also a sign that rental companies — at least those in attendance — were seeing the future with more confidence, willing to spend on needed equipment items. Undoubtedly a certain amount was necessary replacement expenditures, but there was a sense that those rental companies felt good about their prospects for the coming year and saw heightened demand for their products and services.
Another hot topic on the show floor was the efforts being made by a number of NationsRent shareholders — former rental company owners — to present an alternate restructuring plan to the bankruptcy court. We'll have more on that story as it unfolds.
A potentially disturbing occurrence, however, was the development of serious problems in the relationship between ARA and the California Rental Association — which has changed back to its original name as ARA asked. ARA unilaterally decided to cancel the planned joint show for this fall, to be held in October in Las Vegas, willing to risk losing about $70,000 in deposits.
ARA says its decision is based on feedback from exhibitors who say they won't support a fall equipment show. CRA says the decision is in violation of the agreement the two organizations reached last year, which both sides had worked long and hard to create.
I hope, at this time of renewed hope and enthusiasm in the industry, that that hard work was not in vain.
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This issue takes a look at a major new player on the U.S. rental scene — HSS RentX. The United Kingdom-based HSS, of course, has been here for a while, with 14 locations in Florida. But few U.S. industry participants knew much about it until it acquired Denver-based RentX, which had not been faring well at the time.
The track record of British companies in the U.S. rental market has been mixed for sure. GKN, which acquired a number of California companies at the height of a recession, never really found its bearings in the U.S. market. BET had mixed results with the acquisitions that made it one of the U.S.' largest rental chains. Sunbelt, which bought BET to add to an already growing chain, seems to be holding its own.
This issue gives us a picture of the people and systems and thoughts behind HSS. As for how RentX will fare, the truth is still out there. We'll be watching.
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Michael Roth
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