The Economy is Top of Mind in Texas

The price of oil plays a significant role in how one Texas rental business views his prospects for 2017.

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When asked what his store’s biggest challenge will be in 2017, Hayden Gallagher, president of Q Rental Inc., said quickly, “The economy, what else? He noted his Mathis, Texas store’s rental sales have been down considerably for the last two years. In fact, he only purchased one new piece of rental equipment last year and has plans for only a couple more this year.

The price of oil is part of the problem, said Gallagher, who started his rental operation in 2004. Prior to that he worked as a highway contractor. “When the oil price goes up, we get the trickle-down effect from people who are making money, those who are purchasing new homes or upgrading their current ones. This hasn’t been happening the last few years. We’re hoping the new administration will turn the economy around, not only for those in the oil industry but for others, as well.”

In the meantime, Gallagher has diversified, looking to retail sales to bring in more customers. His store picked up Stihl outdoor power equipment, along with Jacobsen Truckster utility vehicles and Dixie Chopper mowers. He also opened his shop to work on all brands of customers’ equipment and has started to sell units in its rental fleet. 

“Retail sales have certainly helped us keep going in a down economy," Gallagher said. "As the economy improves, we will bring on more rental units again, as always letting customers dictate what items we add to our fleet.”