ForConstructionPros.com

You hear a lot about this topic lately. And it's only going to intensify as you continue to see a commingling of the dealer/rental (or is it the rental/dealer?) business.

I just returned from CONEXPO-CON/AGG, and many of the manufacturers I spoke to indicate they plan to sell more to rental companies and assist with servicing rental equipment. Many of the rental companies plan to sell more new units; aggressively sell used equipment coming off the rental fleet; sell parts; and do service work on customer-owned units. I don't know about you, but it's getting tougher and tougher to recognize a dealer from a rental company. But the real question is what does this mean for you as a customer?

Consider the pros and cons

No matter how you look at it, equipment is a big part of your business and profit plan. That doesn't mean you have to own it, as long as you can bring the proper utility value to the jobsite. What you ultimately want is the utility value and uptime a particular piece of equipment can provide at a given point of time.

I guess the question is with whom do you do business - a rental company or a dealer - to get the required utility value? Are there advantages one has over the other? Do the services compare? How about the rates?

At this stage of the game, both dealers and rental houses offer different advantages to be used by contractors. Neither distribution channel at this point offers complete equipment and service capabilities. The market is evolving and will wind up where contractors determine the best values are available.