Although a few rental companies said 2008 was a good year, it will come as no surprise that the majority found business slowing down, especially in the latter months. Most feel 2009 will be even more difficult, with fewer construction projects, and a lot of over-fleeted competition slashing rates to keep machines utilized.

Business seemed strong in most of Texas, and some companies in Louisiana were still reaping the bounty from post-hurricane rebuilding efforts. Areas strong in mining and energy-related industries fared pretty well in 2008 and expect solid business to continue in 2009. There were other pockets of strength amid the overall slowdown.

Times were particularly tough in areas hit hardest by the slowdown — or virtual halt, depending on who you talk to — in housing construction. Commercial construction, while still reasonably strong in early 2008, finally began to catch up in the latter half of 2008.

One doesn't have to be an economist to see that 2009 will be challenging to say the least. But the rental industry, like any business, is not for the faint of heart, and people still need to make a living and go to work every day with hope. Rental company executives have learned from previous recessions that there is a lot one can do to keep their businesses running profitably, and downturns can be a good time to put changes in place that will help when things begin to turn up again, whether that be later in 2009 or 2010 or even beyond.

That experience keeps the outlook optimistic for many.

“Downturns are good in that they force a good business to realize its strengths and focus on the basics,” says Joel Theros of Theros Equipment, Gainesville, Va. “During a hot economy, it is easy to be tempted and try to be everything to everyone. This causes the need for additional overhead and personnel. A downturn corrects all of that.”

RER spoke with rental company owners around North America about their strategies for profitability — or at least survival — in 2009. Here are 25 tips we uncovered that might help in the coming year. You won't be able to incorporate them all because there are many different approaches and what might work for one rental company is likely to be the opposite for another. No matter. If even one of them works for you, it will be worth the time it takes to read the article.

1. Boost your sales staff

   While adding employees is the opposite of what most rental companies are doing in 2009, many rental company owners say increased sales and marketing is more vital than ever when business slumps.

   The theory is basically simple. If your company is bringing in 10-percent less revenue, with that 10 percent coming from the same amount of customers, you may be able to make up the difference by adding new customers. You need more sales staff to reach those new prospects. A few good new accounts will likely pay for those new people, whose responsibilities could be to build rental, beef up equipment sales or both.

   Seattle-based Star Rentals added new sales staff and made them more efficient with several regional sales manager positions to “create more focus on targeting key accounts, and grow business with those key accounts,” says CEO Bob Kendall. “Slow periods give you an opportunity to slow down the focus. This is the most organized we've ever been in our outreach. We've stepped up our marketing and been more aggressive.”

2. Dial for dollars

   While some rental company executives say telemarketing campaigns are outdated, several rental companies are experimenting with them. One way is to develop a script and get on the phone calling prospects to let them know about what your company can offer.

   Another method is calling to gauge customer satisfaction, asking the customers if they were satisfied with recent service provided by the rental company. If the customer was satisfied, it's a good way of reminding them your rental company is still out there next time they have a rental need. If they weren't satisfied, it's a good way to find out why, for the benefit of improving the company as well as letting the customer know you are concerned and hope they'll give your company another opportunity to prove itself.

3. Be a riverboat gambler: Expand.

   To the vast majority of rental companies as well as other businesses in recessionary times, the instinct is to retrench, cut back on employees, services, hours of operation, and expenses in general. To others, it's time to expand to new territories or offer new services. Some say they believe in this philosophically but simply cannot afford to do it, although they can make plans for future growth.

   Ron Pikulik, rental manager for Chicago-based Patten Industries, says his company is “in the process of creating a four-year business plan that will propose expansion.” While Patten may not be ready to embark on the venture now, it's at least putting the plans in place. Other rental companies, such as Star Rentals, are planning 2009 expansions.

   Some companies, such as Dulles, Va.-based Capital Rentals, Knoxville, Tenn.-based Stowers Rents, Birmingham, Ala.-based B&G Equipment, and Phoenix-based Sunstate Equipment, expanded their market share by opening new branches in 2008.

   “In preparation for the downturn, we expanded geographically and increased our marketing staff,” says Ken Pustizzi, CEO of Trico Lift, Millville, N.J., which opened new branches in Houston and Plainville, Conn., in 2008. Some companies, while not expanding geographically, have added lines or placed greater emphasis on particular product segments, such as Bristol, Pa.-based Modern Group, which has amped up its power generation segment. Capital Rentals expanded its high-reach fleet in 2008.

   Sometimes a change in customer focus or attention to a new customer segment can bring in new business and revitalize operations. “We restructured our business units, looking more to industrial and non-jobsite customers,” says Modern CEO Dave Griffith.

   “To expand our business, we have set up rental operations at our Reserve dealership and have built a new stand-alone facility in Baton Rouge,” adds Jay Dinger of Louisiana Machinery, Reserve, La. “Also, we have purchased property in Covington, La., and will build a new rental facility with construction to begin in early 2009.”