AmiSights 1/31: What Keeps Smaller Independent Equipment Rental Companies Up At Night?
Today’s AmiSights guest is Josh Nickel, Vice President of the American Rental Association’s Equipment Segment. The American Rental Association is divided into two segments: One that supports rental equipment companies and one that supports event rental companies.
While the equipment rental industry is rapidly consolidating, the industry is full of small businesses, with 80-90% of the nearly 5,500 members being what Josh considers small- to medium-sized businesses – companies that have less than five locations and do less than $5 million a year in revenues.
I asked Josh what keeps the smaller, independent companies up at night. Without a doubt, he said, workforce development issues and supply chain issues are holding them back. So much, so that supply chain issues are preventing them from increasing revenue by 20%. And that likely won't turn around any time soon.
However, workforce shortages in the trades can be remedied by changing the attitudes of the younger generations. Although driving a truck or working in construction may not seem as sexy as a white-collar office job, they are high-paying and in high demand. The trick is to get students interested in the trades while they are still in middle school or younger.
Hear more about what Josh says about the future of the rental equipment industry here: https://bit.ly/3kOe4zT