Rental Dialog Sparks AED Show

Feb. 1, 1999
SAN DIEGO-High attendance at last month's Associated Equipment Distri-butors convention in San Diego had many saying that equipment distributors are still

SAN DIEGO-High attendance at last month's Associated Equipment Distri-butors convention in San Diego had many saying that equipment distributors are still a vital force despite a transition period with realignments and changes in distribution patterns.

Although registration figures were not available at press time, AED officials told RER that last year's convention in Orlando, Fla., was the best attended in more than a decade and that this year's numbers appear to be only slightly less. Also, the total of 480 booths and 197 exhibitors at CONDEX, the AED trade show, were record numbers. Manufacturers and industry service firms hosted 142 hospitality suites in nearby headquarter hotels.

The growing participation of distributors in the rent-to-rent business was a topic of conversation in the suites and on the show floor, and was the theme of the convention's opening session. A panel discussion on "Consolidation in the Rental Industry" featured the perspectives of national rental chains, a distributor who merged with a national chain, a manufacturer and a traditional distributor.

Fred Whaley, vice president of corporate development, NationsRent, Fort Lauderdale, Fla., told the audience that of total rental revenues in 1998, 42 percent was grossed by equipment dealers, the highest percentage of those revenues. Whaley added that traditional distributors may become more attractive acquisition targets for consolidators as the availability of large rental companies diminishes. Also participating in the panel discussion were Rick Knopke, regional operations manager, Hertz Contractors Supply, Kansas City, Mo.; Jim McCullough, vice president of construction equipment sales for Case Corp., Racine, Wis.; and Charlie Leis, president of Bramco, parent of Brandeis Machinery & Supply Corp., Louisville, Ky.