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Serving the Canadian rental industry for 40 years. www.canadianrentalservice.com 18
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EDITORIAL
Change has come in parallel for this magazine, and this industry
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FEATURE INTERVIEW: PETER DARBISHIRE
A former Canadian Rental Service editor talks about the early years of the magazine and the Rental Mart.
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PRESIDENT’S MESSAGE
Bundling up for winter is part of safety. by Tim Ranson
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INDUSTRY NEWS
Global Rental Alliance meets, Strongco gets out of U.S., Bartell buys Contec, new Ontario rep at Weber...
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BONUS HEAT
We had so many heater submissions in September that we had to put the rest here.
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THEN AND NOW
We take a look back at three past company profiles and find out what happened since.
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AT YOUR SERVICE
The impression of not caring is almost as bad as not actually caring about service. by Russ Dantu
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SAFETY FIRST AND LAST
Talk to your drivers about distracted driving. By Jeff Thorne
Through the years together
The big trends have affected this industry and this magazine in similar ways.
Canadian Rental Service started at Peter and Naomi Watkin’s kitchen table in Exeter, Ont., back in 1976. It was initially a retirement project, but quickly grew into something bigger than the Watkin’s could have anticipated as the industry itself grew quickly in size and sophistication, attracting money, technological innovation, new suppliers and new participants at a rate that demanded a larger and more frequent communications channel. Rental stores in the ‘70s and ‘80s were discovering that to remain competitive they needed to adopt a more professional image, with clean showrooms, new equipment, posted rates and policies and staff wearing shirts, even in the summer. Just as offering rentals out of a grimy garage would no longer do, producing a national rental magazine on a kitchen table was no longer good enough. The industry demanded a professional publication produced by a real publishing company, and Peter Philips and Peter Darbishire fit the bill when their group, AIS Communications, bought the magazine in 1984. As you’ll read in our feature interview on page 2 7 with Darbishire, the long-time editor of the magazine, the evolution of the publication mirrored the evolution of the industry itself.
Fast-forward 20 years. The success of the rental industry
Counter Talks webinar registration
Registration for our second Counter Talks webinar is now live. Join Canadian Rental Service editor, Patrick Flannery, and customer service expert, Russ Dantu, for “Communication Breakdown: Methods for helping your employees get the message across clearly.” Free online registration for this 30-minute presentation is available at the Webinar tab on canadianrentalservice.com.
CRA Atlantic golf photos
Catch all the smiles and swings from the Canadian Rental Association’s Atlantic golf tournament on our Facebook page.
by Patrick Flannery
and the potential for profit in the market attracted bigger and more aggressive competitors with more money than any one rental store. The huge wave of consolidation through the ‘90s and into the ‘00s reflected the new reality that, assisted by modern communications technology, sprawling multinational corporations could be responsive enough to local customer needs to compete on service while keeping prices reasonable through mass buying programs. The new economics of rental combined with expanding fleet requirements and a big injection of cash created a new business environment where bigger was usually better. At the same time, technology was altering the face of publishing in this country. Producing magazines took fewer people, and advanced presses could churn out more issues than any one title would ever need. Again, consolidation and economies of scale became the path to profit. In response, Annex Publishing and Printing (now Annex Business Media) embarked on a program of buying up small community newspapers and trade magazines and bringing them under one roof and into one production process. Annex bought the AIS titles, including Canadian Rental Service , from the retiring Peters in 2007. Today, Annex is the largest trade magazine publisher in Canada.
S o what does the future hold? I’ve always felt that social media and the current trend toward simplicity and convenience in accessing mobile digital communications reflects a desire among people to cut through the clutter and access like-minded information communities where they can find relevant and useful content quickly. On the rental side, we see a trend in the big chains to specialize and focus on the highest-margin, longest-term rental opportunities, leaving small tools and individual service to the remaining independents. Maybe there’s a return in society to the local, the familiar and the immediately available. If so, it bodes well for another 40 years of both the independent rental store and this magazine. CRS
ANYMORE! NOT JUST DIRECT
INDUSTRY NEWS
COUNTER TALKS WEBINAR SERIES RETURNS
Canadian Rental Service’s Counter Talks webinar series resumes Oct. 25 at 2:00 p.m. with an exclusive discussion of effective communication for customer service with Russ Dantu. Dantu is a customer service expert with over 30 years experience in the rental industry and writes the “At Your Service” column in this magazine. Registration for the webinar is free at canadianrentalservice.com > webinars. Joining the webinar requires a free and safe software download. “Communication Breakdown: Methods for helping your employees get their messages across clearly” is presented free courtesy of Point of Rental software. In the halfhour presentation, Dantu will discuss critical tips that will help your staff listen to customers, identify unhappy customers, express themselves clearly, address customers’ needs and make them feel like they just received the best service in the world. Attendees will be able to submit questions to Dantu through moderated chat.
GLOBAL RENTAL ALLIANCE MEETS
TETARENKO TAKES A SHOT WITH WEBER
Weber MT has introduced Joey Tetarenko as the company’s new regional sales manager for Ontario. Tetarenko will be responsible for promoting sales of Weber MT products throughout the entire province. The former NHL hockey player also has 10 years of customerservice-driven sales and is a good fit for the new Weber MT team.
regarding their annual conferences,
The Global Rental Alliance, made up of seven peer equipment rental associations from around the world, held its mid-year meeting via webinar in late August with participation of association executive staff. Consistent with its purpose to increase the profile of the industry worldwide and benefit the respective individual memberships, pertinent matters within the member associations were shared and timely issues impacting members were addressed. Differences exist within the industry of each country due to their specific economic and social environments. This year many countries are experiencing changes in government administrations, with unknown legislative or regulatory futures ahead. Each individual spoke to the performance of their rental industry within the global economy. Time was spent discussing approaches to industry standards and best practices for both rental businesses and manufacturers. Workplace labour issues and member engagement programs were highlighted. Membership engagement is central to the associations; each is striving to include young professionals in leadership initiatives. As an aspect of the GRA program for young professionals, it was mentioned that this fall an Australian rental representative will travel to the United States to participate in the GRA International Business Leadership Program administered by the ARA Foundation. This job shadow program continues to build awareness of the importance of equipment rental worldwide and the value of networking on a global level. A U.S. representative traveled to Australia in the late spring for a similar opportunity. Representatives identified topics for further roundtable discussion at their 15th annual meeting to be held March 2 at The Rental Show in Orlando, Fla. A report was received regarding interest from an additional country to join the Global Rental Alliance, and it will be in attendance in Orlando.
and networking events.
Tetarenko comes with a wealth of experience within the industry having a long history in the construction world as well as in heavy equipment sales. As a valued sales professional for his former employer, Top Lift, Tetarenko will help further develop the growing portfolio of Weber MT’s regional accounts.
“I am excited to start a new challenge working with a manufacturer,” Tetarenko said, “especially one that prides itself on developing premium products. I am fortunate to be joining such a respected company that puts innovation and exceptional service at the forefront.”
Peter Witt, president of Weber MT in North America, said, “I am confident that Joey will provide our dealers in Ontario with the knowledge and service they deserve and play a key role in developing the already growing market within Canada.”
The countries shared information
focusing on education/training, featuring of equipment
Left to right: Roger Vajgrt, president of the American Rental Association; Tim Ranson, president of the Canadian Rental Association; Terry Turner, ARA chairman; Christine Wehrman, ARA CEO; Michel Petitjean, secretary general of the European Rental Association; James Oxenham, CEO of the Hire and Rental Industry Association in Australia; Nathalie McGregor, CRA managing director; Peter Lancken, HRIA representative; Hank McInnis, CRA vice-president; Greg Ward, HRIA director from New Zealand.
SJ30 ELECTRIC ARTICULATING BOOMS
From the outset Skyjack identified two key parameters for these electric booms. Along with offering competitive reach specifications, they also feature exceptional drive and duty cycle performance…
■ Increased duty cycles maximize the amount of work p ossible from a fully charged machine.
■ Outstanding drive performance means loading trailers for transport is significantly improved.
■ Direct electric AC drive system feeds two wheel motors operating in parallel to maximize gradeability.
■ Speed sensing traction control reduces loss of traction and tire scrubbing.
■ Variable speed system pump, and the utilization of gravity for riser further aid efficiency.
www.skyjack.com
INDUSTRY NEWS
BARTELL ACQUIRES CONTEC
Bartell Global has announced the acquisition of Contec North America. This expansion will create opportunities for Bartell Global to better serve current and prospective customers. By aligning the core values of integrity, ownership, and innovation and maintaining priority of ongoing customer service the addition of Contec allows for an increasing ability to offer a greater variety of equipment to the construction, demolition, and site and surface preparation industries.
“Contec North America adds another pioneering, high quality brand to our line of innovative products, expanding opportunities to offer our customers an ever growing range of concrete equipment,” said Bartell Global’s president, Richard Stanley.
Richard Tordoff from Contec stated, “The positive changes brought about by Contec North America becoming part of the Bartell Global family are overwhelming. While Bartell Global is truly a powerhouse in several
industries, the personal care and concern that everyone shows for the customers is what really sets Bartell apart. The most important factor in making this decision was the people. I feel that this is such a great opportunity for all of those working for, and associated with, Contec and Bartell alike. Most importantly, the customers will benefit from the additional resources and assets this merger brings. I’d like to express my immense gratitude to those who have made this possible and I look forward to a bright future and continued success for all those involved.”
Bartell started its journey in 1946 and has grown into the family of companies it is today. It is made up of five premium brands: Bartell, Morrison, SPE, Innovatech and now Contec. Each have rich histories of innovation and pioneering in the concrete and site and surface preparation industries. Contec has additional experience of private labeling its equipment for some of the top rental-focused surfacepreparation companies.
GRAMOLL TO REPRESENT MINNICH
Minnich Manufacturing has announced the hiring of Rick Gramoll as utility sales representative. The addition of a dedicated utility salesperson strengthens Minnich’s commitment to the gas industry and continues the company’s growth. Gramoll joins Minnich through a partnership with MBW, where he serves as national sales manager for the utility division. For Minnich, Gramoll will focus on U.S. and Canadian sales of the Hornet utility drill, an ergonomic solution for drilling gas leak detection and extraction holes. The Hornet pairs perfectly with the MBW vapour extraction unit, which pinpoints leak location and extracts gas from saturated soil.
“Rick brings a wealth of utility industry experience and passion for taking care of customers,” said Todd Jurjevic, director of sales at Minnich. “He’ll be a valuable resource for utility companies seeking a safer, more efficient, gas-extraction solution. Together, the Hornet from Minnich and the MBW vapor extraction unit are the total package.”
Gramoll has worked in MBW utility division sales for the past three years, building relationships with customers throughout the U.S. and Canada. He holds a bachelor’s degree in business administration from the University of WisconsinOshkosh.
“I’m extremely excited to represent Minnich,” Gramoll said. “For years, I’ve used the Hornet in demos around the country, so I’m very familiar with the company and the product. I look forward to helping utility companies across the U.S. and Canada better meet their gas leak detection and extraction needs.”
COMING EVENTS
Jan. 10 - 12
Landscape Ontario Congress Toronto, Ont. locongress.com
Jan. 20 BC Trade Show Surrey, B.C. crarental.org
Feb. 18 Atlantic Show Moncton, N.B. crarental.org
Feb. 26 - March 1 The Rental Show Orlando, Fla. therentalshow.com
March 7 - 11
ConExpo/Con-Agg Las Vegas, Nev. conexpoconagg.com
March 11 Prairie Show Edmonton, Alta. crarental.org
March 22 Ontario Conference and Product Expo Guelph, Ont. craontario.org
March 28 Quebexpo Drummondville, Que. crarental.org
April 6 - 7
National Heavy Equipment Show Mississauga, Ont. nhes.ca
June 21 - 23
Canada’s Farm Progress Show Regina, Sask. myfarmshow.com
INDUSTRY NEWS
STRONGO TO SELL CHADWICK-BAROSS
Strongco has announced it intends to pursue the sale of 100 per cent of the shares of Chadwick-BaRoss for approximately US$12.75 million to ISH Capital, a minority shareholder. The transaction would be effected by way of ISH Capital’s purchase from Strongco of all of the outstanding shares of Strongco’s wholly owned U.S. subsidiary, Strongco USA, which owns 100 per cent of the shares of Chadwick-BaRoss. In addition to the proposed sale of Chadwick-BaRoss, the reduction in staffing and general expense control measures, the company has adopted a salary deferral program for its senior leadership team and directors to further improve cash flow. Over the past several years, Strongco has made significant investments in the business through building new branches and investing heavily in a new ERP system, with the anticipation of higher growth in sales and service revenues. However, due to the ongoing challenging economic conditions in many of the regions in which the company operates, this growth has not been realized. These investments, combined with lower revenues and margins, have put significant strain on the company’s earnings and cash flow. Cash flow from operations was negative in 2014 and 2015 and several times over the past two years the company has breached financial covenants under its lending agreements with its bank and equipment finance companies. To compensate for the reduced cash flow, current bank operating lines have been fully utilized and trade accounts payable have been extended. While revenues have been more stable in the first half of 2016, gross margins were down noticeably. Actions taken to reduce expenses and interest, and improve operational effectiveness are beginning to impact on cash flow in a positive way, however the current financial situation is no longer sustainable and the company cannot wait to realize the results of these actions or for markets to recover. Given the company’s current financial position, management and the board have determined that an injection of additional new cash is essential and the sale of Strongco’s U.S. subsidiary, Chadwick-BaRoss, is potentially the best means to provide additional financial resources in the shorter term until market conditions improve. The company obtained waivers from its bank and certain of its equipment finance companies in Canada in respect of a breach as at June 30 of its interest coverage ratio contained in its lending arrangements, and the company covenanted to complete the sale of Chadwick-BaRoss. The sale of Chadwick-BaRoss at a fair price would allow Strongco to generate liquidity, reduce finance expenses and improve its reputation with both suppliers and customers. Strongco understands that ISH Capital, together with its affiliates, hold in excess of 20 per cent of the outstanding common shares of Strongco. Accordingly, ISH Capital is a “related party” and the transaction is a “related party transaction” within the meaning of Multilateral Instrument 61-101. MI 61-101 requires the company, in the absence of an exemption, to obtain a formal valuation for, and minority approval of, the transaction. The independent directors of Strongco’s board have determined that an exemption is available from the formal valuation and minority shareholder approval requirements due to financial hardship.
“I remain optimistic that the goal of getting our Canadian operations back on stable footings for the future is within reach,” commented Robert Beutel, executive chairman of Strongco. “The disposition of Chadwick-BaRoss would provide us the funds to assist our recovery. With the advantage of hindsight our previous expansion was poorly timed, but we are refocusing to create the most value for our customers, employees and our shareholders.”
The proceeds from the completion of the transaction would be used by Strongco to reduce its indebtedness under its credit facility, pay trade payables and fund its operations.
SETTING THE INDUSTRY BENCHMARK.
Kubota RTV-X Series utility vehicles are renowned for their high performance and durability. Available from 21.6 to 24.8 HP, the RTV-X series is powered by Kubota’s reliable and high performing diesel engines. We pioneered the Variable Hydraulic Transmission and we were the first to add a factory installed utility cab, making this the best all-weather, all-comfort, all-the-time vehicle you’ll ever put to work.
by TIM RANSON, CRA PRESIDENT
WINTER BUSINESS AND SAFETY
The right steps can keep things running well through the cold season.
This has always been my favorite time of year, both because of the colours of fall and the anticipation of a clear morning with the first snowfall covering the world. In every corner of this great country, winter is inevitable. In preparation for this season our rental stores have a dedicated plan each fall to prepare our fleets and switch gears for the changing equipment demands.
Our fall preparation typically starts in late winter of the previous year with our fleet needs analysis. Essentially, we look at what equipment is to be added, replaced, sold off and what new features might be added to create opportunities and complement our specific branch business. This return-to-ready review allows the service group to devote time to the equipment we will keep, yet needs work before next fall. Having it in the available lineup well before the expected need is essential to keeping our business plan functional regardless of when the weather changes to winter.
The other area of winter preparation is customer-based. During a recent discussion with a seasoned rental manager, I asked him if he was confident in his ability to select the right mix of equipment to meet his expected demand in the next year. After some laughter, he indicated that only by knowing his customer and their business plans could he confidently manage the fleet.
He also left me with a few words of wisdom. “Are you spending time or investing time?” His branch manager, field sales rep and inside salespeople stay in tune with the client community, networking with others such as Chamber of Commerce members, municipalities and construction association members all with planned client conversations designed to determine anticipated activity for the upcoming winter. This, he said, was considered “time well-invested”. This kind of client feedback may help define what we do well, providing confirmation of where our client sees us in their supply chain and also providing us the opportunity to explore new or additional products to better project outcomes.
Tim Ranson is Environment, Health and Safety manager at Finning (Canada) / The Cat Rental Store in Edmonton, Alta. He has worked in the rental industry for more than 20 years. Tim sat on the ARA Trade Show Committee and the ARA Risk Management Committee and helped start its Professional Driver Improvement Program. He was also a speaker/panelist over the past three years at the ARA Rental Show learning sessions.
Additionally, client conversations prepare both the client and business partners to anticipate working together into the coming season. By planning and executing this conversation as next-year research, we are forging relationships and cementing the expectation that our company is confident and able to assist with the customer’s future needs.
Your recipe for success needs your team at the rental location to be properly prepared for the changing seasons, recognizing the variety of ways snow, frost, wind and extremes in temperature will create hazardous conditions for each employee. An example of this within my personal experience includes handling cold steel components for scaffolding with too light a glove, or safety glasses fogging up upon entry into the wash bay or shop. We need to shift workwear to ensure it is appropriately insulating, well fitting and in good working condition. We should use the toolbox discussion time to inspect the PPE provided by the company, replacing old boot liners, providing new insulated gloves and ensuring all employees know they have access to replace damaged or non-functional clothing throughout the workday. In our organization, we provide insulated safety workboots and snow packs for field technicians and drivers who may be exposed to extreme conditions. This communicates to them that they are valued and we know the comfort and safety of the employee will translate to higher quality work at any time of year. CRS
•
AT YOUR SERVICE
Managing Ms. Miserable
by Russ Dantu
Iwas standing in the return line at the customer service counter at a major retail store waiting patiently to return the microwave I had purchased only two hours prior. I couldn’t help but notice how unhappy the employee was that was serving our queue. To the side of the counter were three male employees joking around and doing absolutely nothing.
When it was finally my turn to approach the counter, I waited for an invite but she just stared at me with the deer-in-the-headlights look. I decided to engage in this staring contest to see if she’d actually break down and smile and offer a cordial, “Hello, sorry for the wait, may I help you?” Her eyes reminded me of Clint Eastwood: cold and steely. Finally, she broke down: “Next!”
I approached and told her the brand new microwave was not working properly. Not looking at me she said, “Credit card.” Not even a question as to what was wrong with it or if I’d like to exchange it.
“Actually, I like this model so I’d like to exchange it, please,” I said.
She actually rolled her eyes and said, sarcastically, “Then you’ll have to bring another one up here.”
I replied, “Do you think one of those three guys over there could possibly bring one up for me?”
“No, they’re busy.”
yesterday but when I approached her, it was evident that she was still in a foul mood. “This one isn’t working either. Could I please get a refund?”
She replied, “Credit card.”
I asked, “Have you had any other returns on this model, as it seems strange that two in a row are not working for me?”
“Yep, we’ve had several returns on that model this week.”
I must admit, this did elevate my temperature a bit. “Can you tell me why you wouldn’t have mentioned it when I was returning the other one last night?” Ms. Miserable just glared at me, shrugged her shoulders and said, “You never asked!”
I took my refund, went across the street to the competition, spoke with the department manager, who knew a lot about microwaves, picked one I liked, paid for it, went home, plugged it in, and it worked perfectly.
There is so much that went wrong with this encounter. First, the customer service employee was rude, didn’t seem to care about her job and obviously didn’t want to be there. Your front-line employees should be happy, smiling, educated on how to deal with customers and trained to deliver topnotch customer service to anyone who walks into your business. Do you have a Ms. or Mr. Miserable working for you?
Russ Dantu is a 30-year veteran of the rental industry and has been delivering workshops, seminars and keynotes on customer service for over 15 years. For more information, visit russdantu.com or email russ@russdantu.com.
So off I went, retrieved another one, filled out the necessary paperwork, drove home, wrestled the new microwave into the kitchen, unpacked it, plugged it in, and...it didn’t work either. So now I’m thinking, “Maybe it’s me. Maybe I should read the instructions again.” (What is it with guys not reading instructions?)
Unfortunately, it still didn’t work. The next day, I returned to the store hoping Ms. Miserable wasn’t working.
To my dismay, she was. I had thought that maybe she was just having a bad day
The big question here is whether this is really the employees’ fault or the managers’ fault. I doubt Ms. Miserable had been trained properly. Employees should be observed from a distance to see how they engage with customers. Did they receive hands-on training from someone who is experienced in that area, or were they trained by someone who started three weeks prior to them and happened to be the most experienced person on shift at the time?
I was one person who took his business elsewhere. How many others have done the same? CRS
AT YOUR
“Russ entertained the audience, all the while educating and arming them with some superior customer service tips. Two weeks after the presentation, the community is still buzzing about it!”
Jennifer M. –Smoky River Regional Economic Development
“Our members thoroughly enjoyed Russ as our keynote speaker. The information on customer service was highly insightful and the activities that he had us do really kept us engaged. We left his presentation feeling motivated to help our front line workers remember that customer service is #1!”
Lisa M. – Alberta Managers Society
Book Russ SYNERGY SOLUTIONS
Calgary, Alberta Canada
tel. 403-978-2589
russ@russdantu.com
www.russdantu.com
EMPLOYEE AND CUSTOMER RETENTION SPECIALIST
Why settle for results when you can have RUSSULTS!
Do you want to up your game? Do you need to motivate your team? Do you want to add to your bottom line?
Delivering extraordinary customer service on a consistent basis is the key to success! Russ’ sessions will inspire, entertain, and invoke lasting change that will result in more loyal customers! Every business benefits from stronger customer relations and discovering how to maximize your team’s performance will make it happen!
IF GOOD CUSTOMER SERVICE IS COMMON SENSE, WHY ISN’T IT COMMON PRACTICE?
This keynote will have your audience looking at customer service in a whole new light! Packed with stories, stats, tips and techniques, your audience will leave equipped to stand out from their competition and exceed their customers’ expectations immediately!
‘EVERYTHING SERVICE ’ Training Sessions
• Creating Your X-Factor
• Communication Breakdown
• Dealing with Difficult Customers
• Shift Happens
• Building the Dream Team!
• Internal Customer Service
• The 24 Essential Customer Service Nuggets
THE PERFECT INVESTMENT
Consider Russ’ digital audio set for your staff or conference attendees.
SPEAKER • TRAINER • AUTHOR • COACH
RUSS DANTU is an expert on the subject of customer service and draws from over 30 years’ experience. He is a catalyst in assisting companies design and deliver extraordinary customer service. His keynotes, workshops, seminars, and breakout sessions can be timetailored to fi t your needs!
THEN AND NOW
The rental operation that began on a site on King St. (old Hwy. 85) in Waterloo 3 1/3 years ago is distinctly different than the one that stands there today. What developed after considerable “weeding out” and additions of equipment and products was The Concrete Store. It is now a truly one stop store for all concrete needs.
“Running this type of specialty store requires that we continually be on top of any new developments,” says Gerry Heimpel, manager of The Concrete Store. “We’re always on the look-our for new products and equipment that
tie in with the name on the front of the store.” Heimpel brings with him 15 years of experience on the equipment side of the business and six years of rental experience.
The Concrete Store is a wholesale, retail and rental store serving both contractors and homeowners. “Our computer system has been programmed to instruct the operator of the cement blending plant on appropriate proportions on the specific job whether it be for basements or driveways. So even the beginner gets the right blend for the job he wants to do,” says Chuck Chambers. Chambers is the counter person for the retail store and is responsible for writing up the orders for the rental section.
The retail part of the The Concrete Store has a crisp clean layout and also boasts an information centre which has brochures and pamphlets on everything from caulking to screeders. The centre also has viewing room for video cassettes which explain installation of interlocking brick, principles of quality concrete or the ABCs of concrete. Jim Barber, who is one of the two salesmen at The Concrete Store explains that product representatives are brought in to give mini seminars. Barber and Glen Wahl spend much of their time talking to general contractors and municipalities to explain the benefits of The Concrete Store.
Harold Bauman has been in the rental business since 1960. He is responsible for the rental operation. “The Concrete Store is the front-line. We’re there for the foundation and from there we have unlimited opportunity,” says Bauman.
He advocates renting out quality equipment because it stands up to wear and tear and it
Gerry Heimpel keeps on top of new developments in equipment and products to better serve his customers.
makes him credible with the contractor or homeowner. “For example, we retail and rent Kubota engines. The contractors can rent before they buy to prove to themselves how good the equipment is,” Bauman adds.
Bauman sees renting as a “short term purchase.” We agree to buy it back, but if it comes back dirty, it’s theirs. So most of the time it comes back in good shape,” he says.
This story originally appeared in December 1986 Canadian Rental Service
Harold Bauman brings to The Concrete Store over 30 years of rental experience.
The Concrete Store is a one stop store for all concrete needs.
Not set in concrete
The Concrete Store attracted a swift buyout following our1986 story.
by: Patrick Flannery
The Concrete Store was owned by Bill Carter, who also owned K-W Ready-Mix, a long-standing Kitchener, Ont.,-area concrete supplier. Three or four years following our story, The Concrete Store was bought along with the rest of the K-W Blair Ready-Mix empire by St. Mary’s CBM, probably the largest powder company in Ontario. According to Gerry Heimpel, The Concrete Store’s general manager, the new owners struggled and soon CBM wound up the company, simply liquidating everything and letting the employees go.
Harold Bauman, who ran the equipment rental side of The Concrete Store, retired following the sale. He has since passed away.
Heimpel left The Concrete Store when CBM bought it, but still drops in to A-Z Rentals in Waterloo, Ont. One of the owners there, Peter Lavigne, was able to put Canadian Rental Service in touch with Heimpel, who is now 82, retired and living in the same home in Waterloo where he has lived for the last 60 years. “I can’t get the farm tractor business out of my mind, so I have some old antiques that I tinker with from time to time,” he says.
After Heimpel left The Concrete Store he helped his son-in-law take over a local construction company whose owner was ill. Heimpel’s sonin-law had apprenticed at the company and had a strong relationship with his boss, and so was given the opportunity to buy the business. Heimpel helped out there for 12 years before retiring.
“I was actually going to retire before that, but being as I had knowledge of the suppliers, I decided to help out,” Heimpel reports. “I was the gofer.” Heimpel helped with creating a parts department, acquiring a building and
doing the necessary buying.
“He set up a department with everything for general construction needs and I ran that, doing the buying and running around,” Heimpel remembers.
Heimpel hasn’t worked in the rental industry in decades, but still notes how much everything has changed. He remembers Reitzel and BNR Rentals, and has watched as larger conglomerates
have bought them up. “No regrets, things happen,” Heimpel muses. “If you have multiple places to rent equipment and somebody wants to come in a buy the whole thing up, well, why not?”
Heimpel is impressed with what he’s seen at A-Z Rentals, one of the few independents left in the area. “Peter’s done a good job,” he says. “He grew up with that business. Hell of a fine guy.” CRS
by Elinor Humphries
The biggest of 10
“Call us, we’ve likely got it” is the motto of Atlantic Rentals Ltd. “And if we haven’t got it, we’ll get it,” says Sandy MacBeath, the Moncton store manager of three years.
Atlantic Rentals, a well established company, had its inception in 1960. The Moncton branch opened in 1961 and now is one of 10 branches in New Brunswick and Newfoundland.
Although MacBeath has been manager of the Atlantic Rentals only three years, he is no stranger to the building supply business. “I’ve met lots of the construction people in the Moncton area over the years and know many by their first name,” explains MacBeath.
And knowing construction people is good in a business that makes 75 percent of its rental dollars from construction and the other 25 percent from homeowners. “We rent all kinds of equipment from heavy industrial tools and rollers to lawn and garden accessories,” says MacBeath. Glen Cameron, vice-president of Atlantic Rentals, Fredericton disclosed that the Moncton store does business in excess of $300,000 per annum.
The Moncton store is the biggest branch with five full-time employees and two or three students hired in the summer to assist in the peak season. Ensuring the equipment in in good repair keeps the two mechanics, Wayne Barton and Paul Bigger, busy. “Service is our big thing,” explains MacBeath. “If your equipment is down, you aren’t making any money.” Customer service is also a big thing. Harold MacLeod, the
D.A. (Sandy) MacBeath has been manager of the Moncton Atlantic Rentals store for three years.
assistant manager, and Dean Duplessis keep the inventory flowing. “We trade equipment among our branch stores,” explains MacBeath. “Something that might sit idel here, will be in great demand somewhere else.” MacLeod is als making some changes to the shop to make it more energy efficient.
Atlantic Rentals advertising is mostly by “word of mouth.” “Our radio spots have also been very effective,” says MacBeath, “and we go to shows like Expo East which was held in Moncton last year.” As Atlantic Rentals is located on a main throughfare, they also have new customers “drop by.” “We’re an old established company and we’ve been through some hard years, so people think of us when they want to rent,” adds MacBeath.
Being around for a long time doesn’t
guarantee success, however. “Atlantic Rentals buys tough equipment that really stands up,” says MacBeath. “Some people who rent equipment just don’t care of they may not know how to operate it, so you need tough stuff to keep downtime to a minimum.”
Currently, four rental stores serve the 80,000 people of Moncton, New Brunswick and MacBeath expects there will be more stores this year.
Our original story on Atlantic Rentals appeared in July, 1995.
“Call us, we’ve likely got it” is the motto of Atlantic Rentals Ltd.
Endurance through change
Many of Atlantic Rentals’ traditions survived its purchase by United.
by: Patrick Flannery
Peter Dwyer worked at the Moncton branch of Atlantic Rentals, starting in 1972, then moved to the Sussex, N.B., branch then to Miramichi. He spent the last 20 years on the road, travelling from store to store.
Sandy MacBeath, the general manager of the Moncton branch who was interviewed in the original article, passed away a few years after retiring from the company.
Atlantic Rentals was founded by Danny Cameron. Dwyer and Danny’s nephew, Glen, bought him out shortly after the 1985 article was published. In 1990, Dwyer and Cameron sold the whole chain to Barrett Diversified out of Woodstock, N.B. Dwyer stayed on as a travelling manager for the Barretts, covering stores all over the Maritimes. In 2004, United bought the chain from Barrett.
Barrett was in the machinery distribution business and Atlantic came to its attention through conversations with an electrician that worked for the company. Danny was in his late 60s at the time and looking to retire. Glen also stayed on for many years with the Barrett-owned group. The Barretts retained the name Atlantic Rentals. When people think of consolidation in the rental industry, they usually think of United, but Barrett had done a great deal of consolidation prior to United getting involved. They bought stores all over the Atlantic provinces, but generally kept them open under their prior names. United, on the other hand, rebranded its stores and closed less successful ones to avoid overlapping market areas.
“We grew the business a lot in the Barrett days,” Dwyer remembers. There were some boom times for New Brunswick in the ‘90s with new pulp and paper mills and mines coming in. It was a good time to be on the road as a rental salesperson. Taking on the larger contracts in these sectors forced Atlantic to make some changes, like bringing in highreach forklifts and more construction heat.
The sale to United brought big changes to Atlantic’s approach to the rental market. Dwyer says the stores began to focus on larger and more expensive equipment – aerial lifts and forklifts especially – and less on the smaller items that used to be popular with homeowners and small contractors. “There wasn’t such a big demand,” Dwyer says. “People buy that stuff now because it is so cheap.”
Process was another big change. United brought centralization and computerization to invoicing, scheduling, payroll and many other aspects of Atlantic’s administration. Safety training and policies around customer and worker safety also got a lot more focus, Dwyer says.
United also brought national accounts that significantly increased the stores’ business. For instance, when Costco built a new location, one of Dwyer’s stores got all the rentals for the project because of Costco’s relationship with United.
Even as being owned by United changed many things, Dwyer found that loyalty to store locations and the people who worked there remained the same. “At our Fredericton location it was interesting to see the second generation coming around,” he remembers. “These are people who’s fathers owned businesses and brought them in as kids and now they have turned things over to them and they are still coming in.”
Dwyer found the constant flow of new challenges to be his favourite thing about the rental industry. Introducing new equipment to the fleet was always fun, he found, and incorporating newly bought stores into the Atlantic family was always interesting and stimulating. “I like to make deals,” he explains. CRS
THEN AND NOW
A tradition of service
Kensal Rental in London, Ontario has been in business since 1950.
Although many things have changed in 40 years, the quality of service has remained the same.
“We welcome all inquiries whether they have anything to do with us directly, or not,” explains Ken Malott, vice president of Kensal Rental Service Ltd. “If you help someone out, they remember you and that’s good for future business.”
When Kensal Rental opened for business, Kensal Park was a village with three gas stations, a church and a couple hot dog stands. Forty years later Kensal Park is part of the city of London and Kendal Rental is on a busy throughfare. With its humble beginnings in Mel Malott’s (Ken’s father) garage it moved to a 40ftx40ft building at the present location in 1963. The building was expanded to 40ft x 80ft in 1965, doubled again with the addition of a full second storey in 1967 and, in 1970, a 40ft x 35ft, two storey extension was added.
Changes
Ken says he was “born” into the business
by Elinor Humphries
working summers while he was in school. “A lot of things have changed through the years,” says Ken. “Years ago people used to purchase the equipment where they could get it serviced. In the early ‘80s people started shopping for the lowest price – but they still bring it here to get repaired.” About 30 percent of the business is in lawn and garden parts and service.
Kensal Rental serves the construction trade and homeowners. “We have many regular customers,” says Ken. “I know a lot by their first names and I used to go to school with some of them.”
Employees
“It’s getting harder and harder to get good people. There is a particular
Suspending the chainsaws gets them up where you can see them.
shortage of small engine mechanics,” explains Ken. But when asked what makes employees stay at Kensal Rental some as long as twenty years, he said. “We offer a fair wage, good benefits and I guess I’m a flexible employer. If someone needs an afternoon off that’s fine as long as they make up the time. And no two days are ever the same,” he adds.
New employees get hands-on experience from day one. “They have to like helping customers solve problems because that’s a big part of the job, but they don’t fly alone. Senior employees and I are there to guide them through it,” explains Ken. After a period of time, Ken can see what aspect of the business best suits the new person. “For example, if they are really good with customers, I’d probably put them on delivery.”
These lawnmowers are in for their winter check up.
Repair
“We have two schools of thought when it comes to repair,” says Ken Malott. “On the rental side we do preventative maintenance. We want the equipment to be in the best condition when it goes out on rental, so we don’t wait for something to break down.
For the lawn and garden repair – it’s the customer’s money, so we don’t do unnecessary repairs. We believe in preventative maintenance and promote a winter service program.
The Kensal Rental story originally appeared in March 1990.
You are always greeted with s smile at Kensal Rental.
A raised platform helps customers to see the merchandise.
This briefcase stand was created by Mel Malott, Ken’s father.
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If it ain’t broke...
Remarkable stability is the story of Kensal Rental.
For Kensal Rental, the last 26 years since the original story was published has been characterized by extraordinary stability. Owner Ken
Mallott is still in the store every day, working behind the counter to rent mostly small equipment to homeowners and small contractors. He still carries the Stihl line, which Kensal picked up in 1990, and Toro lawn care equipment. Employees have come and gone, some on to greater things (one ex-Kensal employee is now vice-president of a major machinery manufacturer), but the store clips along in a fashion mostly
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unchanged since its inception in the 1950s. “It’s funny,” Mallott comments, “but if you read the article from 1990, not much has changed. Our principles and the way we do business is mostly the same.”
Scag power equipment was one addition to Kensal’s fleet in the past 20 years. Mallott says the quality of their commercial lawn care machinery made it an obvious choice. Mallott does try to add one or two new things every year and to replace worn-out items.
Kensal does now go farther afield geographically than it used to, picking up rentals as far away as St. Thomas, Woodstock and Strathroy.
The names of the customers have changed, but not the challenges. Some of them still don’t want to pay for keeping the equipment through Sunday even though they didn’t pay the weekend rate. One change has been from the internet. Mallott says customers today tend arrive with a very strong idea of what they want to rent, having researched what they need online. “We are finding the customers know exactly what they want when they walk in,” he says. “The problem is, they don’t know what they want.” Reading a web page is no substitution for experience in using different kinds of equipment, Mallott says. Often, he and his staff know that something the customer is asking for will not work well for the job they have, but they have difficulty persuading them otherwise when their minds are made up. “We tell them we have been renting this equipment for 40 or 50 years and we know what it can do and it won’t do what you want, but they insist so we rent it to them anyway and when the bring it back we say ‘We told you so.’ Experience is the best teacher out there.”
After 50 years in business, Kensal is one of the few independent rental stores left in the London, Ont., area. Mallott attributes their longevity to carrying smaller equipment that larger chains are not interested in renting as well as niche products. An example is carpet dryers. Mallott has 42 of them. He doubts anyone else in the area carries them at all, much less a
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fleet of 42. He got a call recently from a customer looking to reserve a rental of an 18-inch power sod cutter because he assumes Kensal would only have one of them. Mallott has eight. Another secret to his success is his willingness to go the extra mile to fulfill special requests. Kensal has eight heavy-duty garden hoses out on rent because a customer had a unique project. Mallot only had five in stock when the customer came in, but he went out and bought more rather than turn the person away.
Daily rentals remain Kensal’s bread and butter. They charge more for them than the big stores, Mallott says, but by making it easy and convenient for customers to get the equipment right away and for the time frame they want, they can still compete. “The big guys come in here and they just walk out,” Mallot says without regret. “I’m not going to rent to the Ellis Don’s and the big contractors of the world. But I will rent to the homeowner.”
One change from decades ago is in the technology and engineering that goes into the equipment. “The equipment is far superior to what it ever was,” Mallott says. “Really it is. We finally found electric hammers that can stay together. In the past, it didn’t matter what you bought, they’d shake apart. For years you’d send them out and they’d bring them back and you’d have to tighten all the nuts and bolts. Chainsaws. Now they have electronic smart computers on board that set the gas and oil mix. We rarely, rarely ever anymore have to adjust a carburetor.” The “idiot-proofing” has been a huge benefit, saving hours of time getting equipment ready to rent again.
Mallott thinks about retirement when the weather gets too hot to work comfortably, but doesn’t know where the next generation of owners at Kensal Rental might come from. He sees no willingness in the younger generation to put in the six- and seven-day weeks required to own a business. So for now, Kensal Rentals will keep going strong, much as it has done for as long as most of us can remember. CRS
by PATRICK FLANNERY
AN EDITOR’S MEMORIES
Darbishire remembers aggressive growth as the industry matured.
Peter
Darbishire, editor of Canadian Rental Service between 1984 and 2007,
shared his memories of the early days of the magazine, the rental industry and the Canadian Rental Mart.
Q: TELL ME ABOUT THE EARLY DAYS OF CANADIAN RENTAL SERVICE. WHO STARTED THE MAGAZINE?
A: It was started by Peter and Naomi Watkins. I think it started as a quarterly. We bought it in ‘84. The Canadian Rental Mart, or it was called The Rental Mart at that time, was in January and we bought the magazine that spring, but the show was still, I think, owned by Watkins for one more show. Naomi was editor and Peter, Peter Watkins, was the publisher. And they were, I believe, former Southam publication employees. So they took an early retirement and then started this magazine and by ’84 the rental industry at that time was growing leaps and bounds. And it had changed from being the kind of round-the-corner, little, greasy mom-and-pop-type operation with old equipment that wasn’t all reliable and so on.
I’m not saying they were all like this but, in a general sense, the industry had been like that in the, let’s say, up until the mid-’70s. They started the magazine and during that first few years, the rental industry grew into being a professional-type operations and some guys started to really come up to what we know now as the standard. And this was all before the big takeovers by the big chains.
Q: HOW DID YOU GET AN OPPORTUNITY TO BUY THE MAGAZINE?
A: Between those two dates, when the Watkins started the magazine and when we bought it, the industry grew by leaps and bounds in terms of its professionalism and number of rental stores and the public’s perception of this type of operation. And contractors started using rental equipment instead of owning their own. Homeowners started doing more projects that demanded better equipment and so on. But the peril in this growth was that there was a growth on the supply side, so major distribution operations started that catered specifically to the rental trade. Some of those are still in operation. There was a company called Polyquip, there was another one called Uniquip. And you’ll see in the advertising in the early issues, those guys were huge suppliers to the business. And so the business grew to a point where the Watkins were running this out of their kitchen, basically. And churning out their, at that time, I think it was six issues a year and they were saying, “You know what?
This is retirement project is becoming more than we want.” So, they started sort of dropping hints to some suppliers saying, “We don’t know how much further we can take this.” And one of the suppliers happened to be an advertiser with Canadian Rental Service, but was also an advertiser with one of our other publications.
Q: WHAT CHANGES DID YOU SEE IN YOUR BUSINESS OVER THE YEARS?
A: We installed an associate editor [Elinor Humphries] and an advertising sales rep and the advertising sales rep who first worked on that for us was Bill Branderhorst We did the Rental Mart which grew in leaps and bounds through that period, too, that next five or eight years. When we bought the magazine, the Canadian Rental Mart was at the Skyline Hotel and I don’t know if you’ve ever been at an exhibition in there, but everything has to come up an elevator. So we had compactors and rollers and God-knows-what coming up and every one had to come up singly. You can imagine the pandemonium of getting the show. It was just brutal. So, the next year, Watkins took it to the Constellation Hotel, which has now all been bulldozed, but it had sort of a ramp that you could bring everything in on and so the move-in was much better.
Then we were in every nook and cranny and hallway in the Constellation: two ballrooms and every hallway. It was unbelievable. I guess we’d have been about two or three years in the Constellation, then we took it to the Automotive Building in Exhibition Place and I think we were there for three or four years and we filled the whole thing. The show was massive and people like Polyquip would take 24 booths. It was crazy. And, of course, Polyquip and Uniquip were huge competitors, so if one upped it, the other one had to up that. It was pretty interesting times.
Q: WHO ELSE WERE SOME BIG SUPPORTERS OF THE MAGAZINE AND THE RENTAL MART?
A: Rentquip is another interesting one because — what’s the guy’s name who runs it now? Jim Freeman. Right, well, his dad was Fred Freeman. Jim would recall because he was a kid at the time. They had a very close relationship with the Watkins because Fred was one of the big supporters. He pushed and said, yeah, this is a great idea, the industry needs this and so on. And at that time Fred used to do electrical cables and things like that. He had had a little specialty thing and he used to build them himself and sell them to the industry and he used to sell little stories for the magazine. So Rentquip was in the business from that time and still there now, so he’d be the longest standing supporter, if you like, of the magazine.
Q: WHAT KINDS OF CONTENT DID YOU PUT IN THE MAGAZINE?
A: Most of our stuff we generated in-house and/or we’d talk to people in the industry for technical information. I
used to do a few technical ones; my background is engineering so I used to do a few things like that, like how to use the compactor to compact soil or base material for putting down patio. Things like that that the guys could then use to give to their customers. We did a few of those. We had a sort of “equipment that works”-type column. It would have a banner head and then a note about how to use a such-and-such, or how to best care for a suchand-such. Some of these would be things that the rental operator could show to a customer as a sort of “how-to.” Nowadays, rental operators are pretty adept at using any tool they have and they can explain and demonstrate and advise guys how to do projects. So, it’s a very different business from that point of view. At that time I think some of them, they knew how do it but they didn’t have any kind of handouts. So I think the idea was that we would produce something they could reprint and use as a handout.
Q: DO YOU HAVE ANY FUN MEMORIES FROM YOUR TIME IN THE INDUSTRY?
A: We used to have a celebrity or a well-known figure would come to the Rental Mart and be a bit of a draw. I think by this stage we’d moved the show up to the International Centre and we were in Hall Six at the International Centre and we filled that. But we had Eddie Shack come and be our celebrity and he was a wonderful, wonderful guy. It was really interesting to have him there and he took a genuine interest. He walked around and said hello to people. The guy’s huge, right. But he had a sense of humour. He had fun the whole time. And we had posters made up and people came and got the posters signed by Eddie Shack. But a really curious twist happened to this. There was a rental operator in, I think, Lindsay, Ontario, who was a lookalike and he had the big handlebar moustache and everything. And he was absolutely thrilled about this and I think we did a profile on him. And he came to the show and there’s a picture in the show report somewhere of Eddie Shack and this rental operator and he came with the black gear on, the black cowboy hat, the whole bit. And the two of them shaking hands. I won’t tell you what Eddie Shack whispered to him in the commentary but it was really, really funny to see these two guys.
Q: WHAT’S KEEPING YOU BUSY THESE DAYS?
A: I’m still living at a rural property outside Exeter which I’ve been in for 30-odd years. And I do little home projects. I build decks and sheds for people. One big thing I have is that I don’t compromise on quality, on materials, and I don’t like deadlines [laughs]. The job will be completed as soon as I can get it done. I don’t delay but the thing is if someone says I need this done by August the first, I’ll say, “Well, see who you can find because I’m not going to go under a gun.” We had years of 30- and 50-odd magazine issues a year and every one had so many deadlines, so I don’t need deadlines any more. CRS
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LITERATURE REVIEW
Readers may request the literature item featured in this review.
Simply contact the company directly using the phone number indicated to request their latest brochure(s).
To advertise in this section, contact Ed Cosman. Phone: 888-599-2228 ext 276, Fax: 519-429-3094
Email: ecosman@annexweb.com
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SAFETY FIRST AND LAST Driven to distraction
by Jeff Thorne
In Canada, distracted driving has become an increasing cause for concern. In 2013, the Ontario Provincial Police reported that distracted driving fatalities surpassed the number of impaired and speed-related road deaths in Ontario. Distracted drivers are fours times more likely to crash than a driver focusing on the road. For this reason, we need to encourage drivers to put down the phone and pay attention to the road.
Sometimes, people do not understand what exactly constitutes distracted driving. Using a phone to talk or text, read a map or to choose or a song is distracted driving. The easiest way to avoid distracted driving is to not use any devices while behind the wheel. Some exceptions are hands-free devices, or a mounted device like a GPS. Reading, applying makeup and using other electronic devices such as portable DVD players are also considered distracting to drivers. So far, eating, smoking, and changing the radio station have not been specifically defined as distracted driving. According to the Criminal Code of Canada, anyone who has the authority to direct how another person works has a legal duty to prevent bodily harm to that person that arises from the work. Therefore, employers may face liability if an employee is injured or injures another while driving and using a hand-held device, if it can be proven that the employer did not take reasonable precautions to prevent such accidents.
In the leading case on employer liability for employee conduct (Bazley v. Curry), it was determined that employers are “ vicariously liable for (a) acts of employees that are authorized by the employer and (b) unauthorized acts that are related to conduct authorized by the employer.” Many American employers have been found liable for accidents caused by distracted driving by employees, sometimes with awards in the tens of millions. In Ontario, the case of Walker v. Ritchie resulted in an employer paying over a million dollars in damages after an employee who was found to be driving distracted caused an accident that resulted in catastrophic injuries to a 17-year-old girl. As the Canadian justice system and government starts to take aim at distracted driving, the numbers of employers being fined for employee conduct behind the
wheel will no doubt increase.
The best form of protection is to ensure that you have a zero-tolerance policy in place that bans distracted driving in work vehicles or in personal vehicles being operated for work purposes. In the event of an accident, an employer needs to be able to prove due diligence. This can be done by developing a policy that explicitly states the expectations of the employer with regard to handheld devices and driving. Have all employees review and sign off on the policy.
All employers who have employees that drive for any work-related purpose should have a policy in place that lists definitions, rules, and consequences for distracted driving.
• Direct staff to never accept or make calls while driving, unless hands-free capability is activated
• Ensure staff understand that there will be zero tolerance for reading or sending texts or emails while driving
• Have staff change voicemail notifications to indicate that they are driving, and will return calls when they are safely parked
• Emphasize that distracted driving is illegal
• Ensure hands-free capability where appropriate
• Follow up with disciplinary action where appropriate
• Direct staff that if a call must be taken or a text sent, that they absolutely must pull over safely before doing so.
Keeping your employees safe is your responsibility, and you must ensure that staff understand the impact of distracted driving. Is one text message, phone call, or email worth the consequences?
At the end of the day, no text message or phone call will ever be worth your life or the life of another, nor will it be worth the cost of losing your business. Workers want to return home at the end of the working day, safely and in the same condition which they arrived to work. One of the single most effective ways to ensure that employees drive safe is to ensure that distracted driving is understood to be a workplace hazard, and is treated as such. Thoughtful training and efficient policies and programs can help you to ensure that distracted driving is not a hazard in your workplace. CRS
JCB’s Range of Rental-Tough Equipment. When it comes to choosing what brand of equipment to put in your rental fleet JCB knows it’s all about rental utilization rates and the ROI it drives to your bottom line. That’s why we offer a full range of equipment purposebuilt for rental, all of which boast JCB’s superior No DPF Tier 4 Final engine solution.
No DPF means no regeneration and one less part to replace and maintain over the equipment’s lifecycle. Add to that No DEF in 74hp and under models and you’ve got a complete package that minimizes maintenance to maximize profit.
Learn more about how to put your best fleet forward at JCBNA.com.
