Every year the American Rental Association convention presents a unique opportunity to take the industry's pulse and hear the latest buzz.
This year the hot topic on the first day was United Rentals' proposal to acquire Neff. By the end of the day we learned the deal had died, for reasons not yet publicly known. This led to a lot of speculation about Neff's future, now that its stock is trading at less than a buck.
The second hot topic, which spread like a brush fire on the show floor, was the rumor that NationsRent had declared bankruptcy. Those of us in the journalism business immediately had to ask, “Is there any confirmation?” It turned out there wasn't, and NationsRent is still operating, although its stock isn't much higher than a dollar either.
Another controversial topic was the ARA show itself. It is still a well-produced convention that offers a lot of value — there were 149 new vendors this year in Orlando, Fla. — with an improving slate of educational opportunities. It is still the rental industry's premier showcase and an excellent chance to see a variety of equipment and meet with vendors. Although the new executive director, Christine Wehrman, was impressive and well-received by the industry, convention floor traffic appeared down from previous years, and the importance of the show as a buying venue has lessened as purchasing habits have changed.
That brought to mind conversations from the past few years — and the eerie sense of the absence of familiar faces always seen at ARA shows, those who had sold their businesses. But the fact that the noncompete contracts of many former owners will expire soon is fueling a new buzz. The expectation is high that a number of former owners, and managers and executives who worked for their companies, are preparing to return to the industry, armed with capital and backing from manufacturers they did business with for years.
So why are they returning instead of sitting on a beach in Tahiti or playing golf in Pebble Beach or watching the girls go by in Italy or Brazil? For the nonequity employees, the answer is obvious. As for owners, no doubt some — especially those who took more stock than cash — didn't make as much money as the rest of us thought they did.
For many, it's that rental is still in their blood. After enjoying a couple of years off, they miss making deals and interacting with customers on job sites. They miss the smell of diesel fuel, the feel of big iron, the satisfaction of serving a customer well. Figuring out an improved service system or even turning a wrench on a forklift is more fun for some than “the good life.” It seems that for many, a certain amount of stress and competition is necessary to feel healthy and alive. And this is the business they know.
If they really do return, we'll find out more when we hear their stories. Stay tuned.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.