“We had a good year last year with modest growth and we expect the same in 2019,” said Walter Mayfield, owner of Rental Solutions in Jackson, GA. “I don’t see anything in the local market here that would indicate anything different.”
In business for 18 years, Rental Solutions is an equipment, tool, and party store located between Atlanta and Macon. On the equipment and tool side, the store’s focus is the smaller, what Mayfield calls “pickup” contractor. “We enjoy a strong market share in part because we don’t compete with the larger national stores that find larger metropolitan areas more attractive,” he noted.
The store employs four people, including a technician and delivery driver. When asked about trade policies that may impact prices, Mayfield kind of shrugged and said, “prices are always going up.” This year, he admitted, is a bit different since manufacturers have already notified him of potential surcharges and increases.
As he pointed out, they seem to be deciding how much of the increase they can absorb and how much they can pass along to the stores and ultimately the customer. Either way, since any increase would be across the board and nationwide, it wouldn’t give any stores a real competitive advantage.
Mayfield said 2018 brought a few surprises. “Mini-excavators and skid-steer loaders are always popular with our customers. Last year, though, there were a few more compactor rentals than usual, thanks to an uptick in the construction market. It’s always hard to predict rental sales. All one can do is keep an eye on the market and listen to the customer.”
This owner is also listening to the pundits who predict a downturn. He believes them, but is looking for a market correction rather than a replay of 2008.
