Texas State Rentals in Tomball, TX recently opened its sixth location located in Austin, this despite what owner Angus Davis said is “a cautiously optimistic view of the market.”
“The only thing holding us back from being more aggressive is memories of ’08,” he remarked. “History indicates that a recession or downturn usually occurs within 120 months of the last one. Currently, we’re setting at 116 months of recovery since ’08. Add to this an election coming up in 2020 and there are reasons to be cautious.
“For the last election, we had two business plans in place. The tax cuts promised by the current administration were a formula for growth and we are growing. The other plan called for less growth and more bottom line cash. For the coming election, we expect to again have those two plans in place.”
Angus, who has been in the industry for 26 years, is a realist and expects there will be a correction in the near term and quite possibly some tough months ahead. As he pointed, though, renting equipment will always be a cost-effective option for contractors.
As Davis emphasized, owners can prepare for contingencies, but at the same they need to make decisions that are in their control. Hence, he hasn’t’ lost focus on the present day, when his company had the biggest December ever and looks to have an even better start to 2019.
“The Texas market is doing very well,” he added. “We’re growing as we mature and train people in the field. Our target customers, the larger contractors, are a good niche for us, too. We have a stringent credit process and customers as a rule have operators that take good care of equipment.”
From this owner’s perspective, 2019 will be an interesting year for rental stores, but no matter what happens one thing remains constant: “Having smart people working for you and a good location is the best formula for long-term success.”
