In my opinion, our world and our industry are changing faster than ever. In addition to lightning-fast advancements in technology, our society and seemingly every part of our lives are changing at a dizzying pace. As a result, I feel it is more important than ever for equipment rental companies to take a good look at the state of their own rental company. I also believe that it is very important to adjust their focus and other strategies now for the remainder of this year and beyond.
It is vital to pay even closer attention to changes in their local business environment, their customesr’ needs and what portions of their business are in need of expansion, deemphasis or elimination. For example, some unprofitable parts of the business may need to be radically altered or even eliminated. It certainly can be very difficult to entertain discontinuing categories of products or services that you’ve offered for years, but perhaps they just don’t make sense going forward.
The uncertainties relating to the economic slowdown and possible recession later this year are creating potentially huge opportunities for equipment rental companies. (See my column in the January/February 2022 issue of Rental.)
I feel that the equipment rental industry is still in very good shape. My view is that the industry continues to show strength and resiliency. So far, the economy has helped propel the need for rental equipment to record-breaking new heights. Considering the labor crisis, inflation, our economy’s slowdown engineered by the Federal Reserve (through interest rate hikes) and geopolitical saber-rattling on many fronts, our industry’s resiliency has been nothing short of phenomenal.
Many (or perhaps most) rental companies feel that their business growth and profitability have been restricted by not being able to find enough employees. The labor shortage is severe in many areas of the country. There are a few hopeful signs in 2023 for some slight lessening of the labor shortage because some of the financial incentives for people to stay at home and not work are ending, less economic stimulus is being pumped into the economy and there is a slowdown in the economy. The topic of the labor shortage highlights the importance of having effective employee training and retention programs in 2023.
Another important subject for “things to do” going into 2023 is to be certain that your rental rates and other charges have be comprehensively reviewed and adjusted. Refer to my column in the October/November 2022 issue for my thoughts on this topic.
One of the most important things one can do for 2023 is to implement a more effective safety program for your company.
There are so many facets to consider in the rental business, including the vast array of rental equipment, customer safety, staff safety, delivery vehicle safety, safety involved with your facility and other safety considerations, but safety is well worth the effort and should be one of the priorities in preparing for 2023 (and there are plenty of resources for safety materials).
Some rental companies are so overwhelmed with how big the topic is that they may be inadvertently putting the project off. Also, equipment rental company owners and managers, like all small business operators, are busy taking care of the day-to-day running of their companies, so it is very difficult to devote the time to develop a comprehensive safety program, but there needs to be a beginning to this very worthwhile project, and perhaps surprisingly, it isn’t terribly difficult.
Here are a few additional thoughts and opinions to consider as you kick off your safety program or enhance your current safety initiatives:
- Relevant safety messages should be presented briefly every day. These “safety huddles” could take place near the start of each day and be brief (less than a minute or two), offering a quick safety reminder or two. An example could be a reminder to lift items properly throughout the day. The next day’s reminder could be to use personal protective equipment in the performance of their work. Some of these huddles could be less than 20 seconds so this is something that rental companies could do even in their busiest of seasons.
- Get employees involved. It is more likely that employees will be more committed to safety if they have a role in developing some of your safety program.
- Every meeting that the company has should contain a safety message component.
- Be certain to document your safety efforts. Document safety meetings and other safety investments as this demonstrates that you are serious about safety and safe practices.
- There are plenty of resources for safety materials. So, be sure to tap everything available to you for relevant safety materials.
One of the keys to success of this or any other safety initiative is to make a firm commitment to continue doing it. It would be easy to start doing something worthwhile and then forget to continue doing it. Remember, you want your staff to embrace the continuity of doing their work safely time after time and day after day. Develop the same habit in presenting your safety messages without the same excuses some of your employees might use for not performing their work safely.
