In 2008, nearly one-third of Village Rental’s revenue came from 10 major home builders. The economic downturn changed the landscape in a hurry for this Dayton, OH rental center. Many of the large production home builders never recovered and they still shy away from the marketplace. Still, owner Steve Kuflewski projects a six-percent growth in revenue this year on the heels of a four-percent increase in sales last year.
“The Dayton economy is not as strong as other areas of the country, but it is picking up,” said Kuflewski. “Our store has and continues to cater to the smaller contractors, many of whom remodel homes, put in patios, and install outdoor kitchens. Even though the housing boom came to a halt, these contractors stayed relatively busy and they still are among our best customers. Party and events make up probably 10 percent of our business.”
Kuflewski opened his store in 1989 and today employs 14 people and looks to add another two this summer. He recently hired two mechanics, a good find since, in his words, the younger generation doesn’t seem to be all that interested in equipment, either operating or fixing it.
This owner thinks the Trump administration could help the economy and his rental business if discussions about tax breaks and reducing regulations bring results.
“A tax break for homeowners would give them more discretionary income to spend on upgrades, something that would benefit both our contractor customers and us. Any money saved from a tax break for small businesses like ours would likely be spent adding something new to our inventory and replacing some older units. So far, we’re looking to replace an excavator and small backhoe, along with some other tools.
“Administration talk about ending depreciation rates and allowing all capital equipment to be expensed or raising Section 179 limits would also be helpful, but it may encourage some of our contractor customers to buy instead of renting equipment. Still, there will always be new contractors in need of rental units.”
He pointed out that the Wright-Patterson air force base remains the area’s biggest employer, and after that, most jobs are in the lower-paying service sectors. Despite a lagging local economy, though, his store is doing well and looks to build on its book of business when the economy and housing market pick up and if the new administration comes through on delivering some tax and regulatory relief.
