In preparation for our January issue, RER interviewed dozens of manufacturers and rental company leaders, of which Bill Thompson is both, as president of Thompson Pump, which manufacturers pumps for sale to the rental market as well as rents directly.
RER: How has 2013 turned out for you business-wise?
Thompson: We're projecting 2013 to end on a high note with revenue growing approximately 10 percent over 2012. Since ours is a specialty product rental business, you'd expect rental rates to show significant improvement. However, that's not happening. While general rental companies may be seeing an uptick in rates, our sector continues to face downward pressure. In spite of all that, our profitability improved during 2013.
What areas have been strongest for you in the past year?
We're seeing a resurgence in residential construction in some territories but in others, land development is still dead. In general, projects related to energy continue to be very active. The need for expansion and improvements to our nation’s infrastructure is still not being addressed adequately.
What kind of results do you expect for 2014?
Cautious optimism is still the mantra. We're expecting slow growth but there is still too much uncertainty. Governmental interference and unreasonable and unnecessary regulations continue to stifle the economy.
How are your customers looking at the year ahead?
So many projects were delayed during 2013 that our customers are hesitant to take risks and to make investments until the last minute. Cautious optimism along with well-planned strategic moves in an atmosphere of uncertainty probably best describes what I’m seeing.
What kinds of changes did you make to your business in 2013 and what kinds of changes do you plan for 2014?
Product development continues to be a focal point in our company. We're still coping with incorporating Tier 4 final engines into our product line. We added a significant amount of equipment to our rental fleet this year and plan to do so again in 2014.
Are you planning any kind of expansion or growth in 2014?
Yes. We are planning to expand our manufacturing capacity as well as our rental footprint and distribution network during 2014.
A few years back during the recession most rental companies reduced their fleet size, and reduced personnel. Have you in the past year grown your fleet or added back personnel and do you expect to do so in 2014?
In addition to enhancing our rental fleet, we invested a significant amount of time and effort in training during 2013. Rather than adding personnel in anticipation of an improved business climate, we have invested in developing our existing staff to enable them to be more efficient and productive.
Anything you’d like to add?
Thanks to recently modified EPA regulations governing the permissible speed settings of low-horsepower diesel engines, we pump manufacturers are going to face additional obstacles when it comes to variable-speed pump sets.
