LAS VEGAS - Ahern Rentals has entered into an agreement with Payless Cashways, a building materials supplier based in Kansas City, Mo., to operate rental facilities in Payless Cashways retail outlets.

Ahern plans to set up counters and showrooms inside the stores, storing larger equipment outside in the stores' lumber yards.

Ahern will supply customers with small to medium-size tools, including power tools, saws, compressors, paint sprayers, and lawn and garden items, and larger construction equipment such as skid-steer loaders, trenchers, aerial work platforms, cranes and excavators. Ahern will offer job-site delivery.

"Teaming up with Payless Cashways is a logical step for us," said Don Ahern, president. "We serve the same customer segment, so it makes sense for us to partner, bringing all the material needed to complete home maintenance, repair, remodeling and building projects together at one location."

Payless CEO Millard Barron said the alliance furthers the company's ability to offer customers one-stop shops. "We have added work apparel and vehicle maintenance materials to our product mix," Barron said. "Now that we are offering this value-added service to our customers, we are one step closer to [our] goal."

The companies planned to have the first facility operational in Las Vegas this month, with Ahern Rentals moving one of its current Las Vegas facilities to a local Payless Cashways store. The companies will work together to roll out the program to other facilities.

Ahern follows NationsRent, Prime Equipment and Stephenson's Rent-All as major rental companies opening rental departments in home-improvement centers.

Payless Cashways operates 150 stores in 18 states in the Midwest, Southwest, Pacific Coast and Rocky Mountain regions. The stores, oriented toward professional builders, remodel and repair contractors, institutional buyers and project-oriented customers, operate under the names Payless Cashways, Furrow, Lumberjack, Hugh M. Woods, Know Lumber and Contractor Supply.

Ahern Rentals, one of the largest family-owned companies in the rental industry, is No. 18 on the RER 100 and operates 24 locations in five states.