MORRISTOWN, N.J. — Manufacturers of tools and small equipment are looking to develop rental programs to bring their products directly to the rental channel, industry consultant Dan Kaplan told an Association of Equipment Manufacturers teleseminar last month. Kaplan said a number of tool manufacturers are looking for the most efficient ways to get more directly involved in the rental business as a way of bringing more product to market, hoping to duplicate the success of Caterpillar, Volvo and other large equipment manufacturers.

Kaplan also told the AEM members that 2003 should be an improved year for rental companies, despite the difficulties many experienced in the first quarter. While poor weather played a major role in the sluggish start experienced by many rental companies, 2003 should bring improved time utilization, higher rental rates and increased rental volume.

While this improvement may not greatly affect manufacturers' sales to rental companies in 2003, Kaplan said, its impact will be felt strongly in 2004.

Kaplan is CEO of Daniel Kaplan Associates, Morristown, N.J.