New Era Brings Excitement and Uncertainty to Rental Industry

What a fabulous time to talk about the state of the rental industry! We're being constantly bombarded with mega doses of news about issues that directly affect our economic well being. The country voted for major change and we certainly are experiencing it. While I don’t expect the cringing and hang-wringing over our new President's decisions will subside any time soon, I do believe it's wise to vow to remain successful in your rental business no matter what happens.

Any of us who have been in the rental industry for several decades or more will tell you there have been plenty of uncertain and troubling times over the years. But our country’s culture of success, coupled with the unique nature of the rental business and the tenacity and hard work of those who make up our industry, have all combined to pull us through every time.

Looking into my crystal ball

While pondering how 2017 will shape up, I see some strong themes. Here are a few thoughts, observations and predictions:

The economy has the potential to become an awesome, jet-propelled freight train. Yes, you can feel the electricity of it. Tempering the euphoria, however, is my strong sense that the new administration will make a colossal foreign policy blunder that could derail the super-prosperity train. I don’t think I'm alone in my excitement and in my concern. Of course, many rental companies in 2016 were hesitant to do much to propel their businesses forward. They took the “wait and see” approach because let's face it, it can be difficult to invest in much more than inventory upgrades when there are so many political and economic uncertainties.  

The bold will benefit. Even as all of the uncertainties of 2016 and the election were being felt, a large number of my customers were making bold, but strategically sound moves to take advantage of tremendous opportunities in their market areas. I believe 2017 will prove to be an even more pivotal year characterized by significant and bold initiatives by forward-thinking independently owned and operated rental companies.

Competition will be fierce. Remember that you are not alone in your vision of what the country’s new direction could bring. Less regulation, greater infrastructure spending, more disposable income and a number of other possible business-friendly outcomes will be noticed by your current and potential competitors as well as you. With that in mind, it's often not wise to be overly conservative and it's never a good idea to rest on your laurels. In other words, don't let your competition eat your lunch.

Expect expansion. I believe we'll see growth that's significantly stronger that what's been forecasted, particularly for progressive independently owned and operated rental companies. I predict there will be many more independents actively seeking to grow their rental companies through starting another location in a neighboring community but outside of their traditional territory.

I expect 2017 will bring the initial stages of facility expansion at an almost unprecedented level. Some rental companies have been hesitant to secure the additional space they desperately need to grow their business and inventory. This hesitancy has been partly due to political uncertainty and a far less than business-friendly administration for the past eight years. But we're in a new era. 

Meanwhile, some rental business owners are comfortable with a slow and steady approach which suits the less-than-vibrant economic condition of their communities. But there are some who will be more aggressive because of their local market potential. Of course, always seek the advice of a rental business consultant who has worked with a significant number of rental companies before pulling the trigger on large investments.

Emphasize training. Another trend I foresee for 2017 and beyond is a greater emphasis on employee effectiveness and efficiency. The need in these areas has been great for some time but I've seen increased demand for this type of training - for employees and managers - due to increased competition for quality help.

Whether the world is facing extreme uncertainty or unbridled optimism, the most important and constant objective for your rental business should be to remain positively focused on moving forward at all times.