Business in 2008 and 2009
The economic challenges in the marketplace have affected all industries, and the pump and power industry is no exception. RSC Equipment Rental's business, specifically in the pump division, has faired well in the economic climate, in part because the company identified the opportunity to pair the market need for short-, medium- and longer-term pump usage with the advantages of rental.
In an effort to meet those needs, we have launched a new service focusing on industrial-scale pump and power solutions to complement an existing fleet of small pumps and generators. The fleet, which originally consisted of dewatering pumps up to 6-in, now includes an inventory capable of servicing a range of applications including industrial processing and mining.
In addition, we chose to strategically expand pump and power solutions to support high demand by the petrochemical, government, pulp and paper, agriculture, manufacturing, mining and emergency response industries nationwide. By diversifying the company's customer base and introducing new programs and services that streamline the rental process, we are prepared to meet the challenges of the marketplace in 2009.
Critical Issues
Aside from the economy, weather is one of the largest challenges that the pump market faces. When storm season hits in the fall of each year, we experience a surge of requests for industrial scale pumps. In addition to the frequently-hit Gulf Coast region, massive flooding in areas in the Midwest in 2008 created higher than average demand in those areas. Weather is unpredictable and creates a huge challenge.
While the economic "storm" is in full swing, it has a downstream effect, causing business owners to look for less capital intensive alternatives. Customers are looking for a solid company in the midst of economic instability, one that provides value and quality and can help to manage budgets and eliminate multiple-source billing. We supply small pumps in all 470 regional branch stores (40 U.S. states and three Canadian provinces); however, the introduction of the new pump division provides access to industrial-scale pumps and generators that can be shipped to any location in North America based upon need.
Furthermore, with Americans tightening their belts, the most critical issue looking forward for 2009 will be how to best control the cost of a project. Web-based management systems can reduce operating expenses, improve productivity, save time and lower costs. Via our system, all customers receive an instant snapshot of what they have on rent, the location of equipment, how long it has been on rent and the current rental cost. The system enables a project manager to manage multiple projects with a single view. Web-based management systems will help customers get through the next 18-24 months.