In preparation for January RER, we interviewed dozens of equipment rental people about their outlook for the New Year. We’ll present a number of the interviews in RER Reports. Fred Daniels III, president and CEO of Ames Taping Tools, Stone Mountain, Ga., which specializes in rental of drywall finishing tools, talks about use of data, LEAN methods, building the company’s sales team and adding surprise products.
RER: How has 2013 turned out for you business-wise?
Daniels: Both revenue and profitability will be higher in 2013.
What areas have been strongest for you in the past year?
Our business in drywall finishing tools and merchandise falls into residential and commercial. We have had growth in both segments, but the growth in residential has been larger; it had fallen off the charts during the recession, so there was a lot of opportunity for growth.
Do you expect to target a different customer base in 2014 than in the past, or emphasize a different segment?
2014 will be a year where we focus on building our sales team and interacting with our customers of choice using data much more than we have done in the past.
What kind of results do you expect for 2014?
We expect a strong year in 2014. All indicators are pointing in the right direction.
How are your customers looking at the year ahead?
Our customers are busy. Many have a book of business that spans most of the year. Every customer that I meet expects a better year in 2014.
What kinds of changes did you make to your business in 2013 and what kinds of changes do you plan for 2014?
In 2013 we focused on driving operational efficiency using LEAN methods. We added new levels of structure to our operations to position the company for growth. In 2014, we add a sales focus. Building a great team, using data around our customers and expanding our distribution network of stores.
Are you planning any kind of expansion or growth in 2014?
We plan to add at least five new stores in 2014 and to increase the capital we invest in new tools.
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?
We have opened three new stores in 2013, added to our operational / service center workforce, added a VP of sales Jim Mathers, and added new tools to the fleet. In 2014, in addition to opening at least five new stores, we will add to our sales team and add improvements to our product line along with other new surprise products.
What issues concern you going into the new year in relation to the economy or politics?
I hear from our customers that they are having a lot of difficulty finding skilled tradesmen across all areas of the U.S. The shortage of skilled labor is a big issue and will continue to grow, leading more companies to use tools that help efficiency and productivity.
