WATCHING THE FALLOUT
Dear RER:
After returning from a much-needed vacation, I sat down to review my August issue of RER and I stumbled on the From the Editor column entitled “The Shock Wave Returns” and read it with much interest. I couldn't have put it any better myself.
The big question now is…where will it all go to from here?With basically a handful of “real players” left within the aerial/access industry because of its consolidation, it will be very interesting to watch what happens in the coming six to eight months. Unfortunately, the end user has no clue as to what has happened, only that they are increasingly finding little to no support and even less of an industry knowledge base to draw from.
Will the old heads ever come back? I believe the answer to be “No.” The reason being - ROI: it's just not there! Until rental rates reflect yearly adjustable increases and actually adjust current rates to today's actual value, it's just not worth it to invest. There needs to be a “re-think” of sorts as to what is expected of this industry.
Industry rental rates were written in stone 30 years ago and have not been adjusted since. If anything, they have declined to a point of ridiculousness! I do not pump gas at 25 cents a gallon any more! I have seen, on average, a 5 to 6 percent per annum adjustable increase in costs over the last 25 to 30 years. How does this reflect on my operating income? How has this non-adjustment effected my operating costs let alone my diminishing returns?
Until there is some sort of guidepost in place to help direct and guide the aerial/access industry, I believe it will remain a mess. I'm not talking about OSHA and I'm not talking about EMI. These are great organizations within their own confines. The aerial/access industry totally revolutionized construction as we knew it 30 years ago. Prior to that time all that existed were scaffolding and kicker boards! What happened to that foresight? What happened to that spirit?
There is a new day dawning within the aerial/access industry. It's just unfortunate that some of the people you now know within this industry may not make the transition. When you see an industry contract to the size of a 5-gallon bucket and enough trained and knowledgeable people to fill a 55-gallon drum, it's just not going to happen. That's a lot of knowledge and expertise out the window!
Craig Ihde
President/CEO
Aerial Specialists Inc. USA
Racine, Wis.
A RENTAL STAR
Dear RER:
I am just writing to say how much I enjoyed your cover piece on Star Rentals in the August issue of RER. I have known Bob Kendall for 10 years and have a tremendous respect for him as a businessman, leader and rental operator.
Based on what I know of Star and Bob's accomplishments, your piece did an accurate job of portraying the Star story. Your subscribers, if they are prepared to read and pay attention, will now know that placing the customer at the heart of the equation, and empowering employees to meet the needs of the customer, is the surest way to success in this business.
Steve Shaughnessy
Chief Operating Officer
National Equipment Services
Evanston, Ill.
