RSC Equipment Rentals officials said they will open 20 new stores during fiscal 2007, up from 13 openings in 2006 and only two in 2005, Phoenix’ East Valley Tribune reported last week.
Phil Hobson, RSC’s senior vice president of corporate operations told the paper that double-digit growth in non-residential construction, a growing market share and a growing preference by customers for rental over equipment ownership is driving RSC’s growth. He said the company is focusing more on growing near existing markets where it already has a solid customer base and strong demand, rather than expanding to new markets or acquiring other companies.
An analyst from a Scottsdale, Ariz.-based private equity group said RSC hasn’t been hurt by the slowdown in housing construction because little of its revenue comes from residential customers. He said the company is being helped by investment in public infrastructure such as roads and wastewater treatment plants.
Hobson said only 5 percent of RSC’s revenue comes from residential customers, while about 70 percent comes from commercial building and other construction, with another 25 percent coming from industrial maintenance, repair and operations.
At the end of the second quarter, RSC had 467 locations in 39 U.S. states and four Canadian provinces.
Scottsdale, Ariz.-based RSC Equipment Rentals is No. 3 on the RER 100.