National Equipment Services made its November 2002 $13.75 million interest payment on its bonds, new president and CEO Joseph Gullion announced last week. Gullion also offered insight on the organizational and operational changes expected to improve NES’ performance.
“Throughout 2002, the focus has been on two areas of operations: cost reductions and efficiency gains,” Gullion said. “We are positioned to experience tangible results from these efforts in 2003 by having removed more than $50 million in operating costs. The major contributors to the savings are the reduction in the workforce by about 650 employees in 2002 – an effort largely completed; consolidating sales, service, delivery and back-office operations; and finding ways to capitalize on our size, such as through greater use of volume purchasing.
“To continue these gains and to implement new ones, we made several organizational changes. This included creating a new position – director of assets – which reports to me.”
Gullion named Brent Mumford to this position. He added that while improving efficiency is important, revenue growth is essential to the company’s future.
“In the 60 plus days since I joined NES, we completed an in-depth evaluation of all aspects of our operations and how to help them grow. The result is a formal strategic business plan. All of our 190 locations have targets for revenues, costs and equipment utilization.”
Gullion added that NES recently hired Don Scott as vice president of sales and marketing to lead the company’s strategic sales campaign and develop its national account team.
Evanston, Ill.-based NES is No. 4 on the RER 100.
