Scott Equipment 50th Anniversary

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C O N G R AT U L AT I O N S

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BUILDING A SUCCESSFUL FAMILY BUSINESS Scott Equipment and Western Rentals are two Southern California companies with a common heritage and a promising future under the guidance of an up-and-coming third generation of family leadership. The companies’ leaders see evolution and diversification along with maintaining their core equipment in dirt work as they continue to serve the construction industry in the next 50 years.

“You are going to see more specialized equipment in our future; however, we will continue to move dirt,” said Richard Scott Jr., co-owner of the sister companies. “There will be rebuilding of infrastructure for decades to come, and equipment sold by Scott Equipment will be there. Just as it is today, pushing dirt, digging trenches, loading materials, hauling water and helping keep Southern California on the move.”

There are many factors that go into making a family-run business successful after the first generation of founders.

Construction Equipment Guide recently sat down with members of the second generation of the Scott family to see what makes their business so successful.

Q&A with Co-Owners Richard Scott, Jr. Q: Did your father, Richard Scott, Sr., have a partner when he started the company in San Diego in 1971?

A: My father Richard Scott Sr. was the sole founder & owner. He saw a business opportunity with John Deere and decided to purchase a dealership. His goal was to be an entrepreneur, and this was one of his first official ventures.

was very hands on in the beginning, you would find him moving equipment around or even working in the shop. I would like to think I acquired his work ethic.

Q: When did you get into the business?

A: I worked for my father in San Diego in the early years. I learned how to run a low bed and understand a jobsite. I then went to work at a Deere dealership in Sacramento and eventually came back to San Diego to help run the store there. Following the close of our San Diego location I left to go work and learn more about the heavy equipment auction busiCo-Owners Richard Scott, Jr. (L) and Gregg Scott. ness.

Q: When did you come back?

Q: When did you become involved in A: In 1996, my brother reached out to the business?

A: 1979, I was 18 years old. My goal was me and wanted me as a partner in the to learn all areas of the business. I washed company. Long story short, I brought my machines. I worked as a mechanic and a experience in used equipment back and truck driver. I truly learned from the put my own spin on things developing our water and dump truck side of the business. ground up.

Q: Did you foresee your children com- My brother and I have a strong and cohesive bond. We can switch roles simultaneing into the business?

A: I didn’t see it coming early on.Then as ously to support sales, service, parts, or they grew into their education, the conver- rentals due to our well-rounded experisation evolved over time as to where they ences. In 2001, we also started our own saw themselves in our business. Britnee, auction company.

Q: Employees talk favorably about you Jacob and Kevin all completed their college degrees, worked for other businesses, and and your brother being in the office on a developed skills in other industries. They daily basis. Is your presence there by were given jobs based on their skills sets, design?

A: This has always been a conscious not because they were family.

Q: How did you form your business phi- decision for Richard and I. One of us is almost always available. We want to suplosophy?

A: We learned a few important business port our customers and our employees.The practices from John Deere early on. After team knows they can always get a hold of our dad stepped away, we were fortunate us one way or another. to have good people around us who helped build upon these established practices. We took those systems and evolved them as we moved forward. We’re also keen on using our intuition. We don’t allow hardship to overshadow the hard work. Our instinct and experience have helped develop that mindset.

Gregg Scott Q: Your father was an entrepreneur; did

Richard Scott, Jr.

that run in his family?

A: Our grandfather was a general manager of the Penny’s Company. Our dad was given the opportunity to run his own store but following the draft he opted to go into business with Klein Products instead. He helped grow Klein products selling water tanks before he opened his own equipment dealership. Dad was a jack-of-all-trades. He 4

Gregg Scott

CONGRATS ON 50 YEARS IN BUSINESS. Terramac toasts Scott Equipment on 50 great years. We’re honored to partner with the experienced Scott Equipment team. Cheers to another 50 years of helping customers conquer any job site challenge.

Visit Terramac.com or your nearest Scott Equipment location to learn more.

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The Fontana location opened in 1989. The Santa Fe Springs property opened on leased property five years ago after New Holland and Doosan encouraged the company to open a store in the Orange County and Los Angeles basin.

EQUIPMENT, LINES, TECHNOLOGY New technology, new ideas and new styles of equipment are the focus for Scott Equipment.

As the construction market continues to evolve, so will Scott Equipment Inc. The company prides itself on helping contractors find the right machine to get the most out of their jobs. That means the business has to continue to challenge themselves to be at the cutting edge of the industry.

“We are challenging ourselves to grow and differentiate ourselves from the competition. We have put a lot of effort into finding niche areas in the market,” said Britnee Heckman, sales and marketing director.

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New Holland Construction machinery remains the company’s flagship product line.

Expanding the variety of equipment represented by the company is an ongoing initiative for Scott Equipment.

New Holland Construction machinery remains the company’s flagship product line, with the U80C skip loader in high demand.

The 74hp skip loader has a 1 cu. yd. bucket on the front and a 7ft. box blade on the back. It is a loading and grading combo tool.

The L328 skid steer is another quick-selling New Holland product at the dealership. The L328 is a 4-ton unit, powered by a 74hp engine and has a rated operating load of 2,800 lbs. The other two long-time, staple product lines for Scott Equipment Inc. include Kobelco and Doosan. Scott Equipment became a dealer for Kobelco in 2002 and Doosan in 2012.

To complement its core lineup of machinery, the company introduced Mecalac specialty equipment. Mecalac builds several wheeled dual excavator/skid steer models as well as swing loaders with pivoting front buckets, all-wheel-steering loaders, and dumpers with 1-ton to 10-ton capacities.

“San Bernardino, Riverside, Orange and Los Angeles County are all heavily impacted communities,” said Heavy Equipment Specialist Art De La Torre. “These machines are very versatile and can get in and out of tight situations.”

Additionally, the Terramac crawler carrier represents a new and innovative line at Scott Equipment. Launched just a decade ago by an Illinois manufacturer, the line of carriers offers fixed or rotating

platforms that ride on low-ground-pressure tracks. “They’re good for swampy, sandy or marshy areas, for any environmental job that requires a certain ground pressure,” said De La Torre.

The company continues to build upon its lines of niche equipment, including concrete pulverizers and a partnership with Merlo telehandlers. “These specialized machines will open more windows for us,” said Richard Scott Jr., whose day-to-day focus at the company is on new equipment sales. He adds that, “in addition to standard excavation and road equipment, we are working more intentionally to be involved in more demolition and recycling specific equipment.”

Expanding the variety of equipment represented by the company is an ongoing initiative. Britnee Heckman, sales and marketing director, said, “we are challenging ourselves to grow and differentiate ourselves from the competition. We have put a lot of effort into finding niche areas in the market.”

Scott Equipment sales occur at two locations — Fontana and Santa Fe Springs. The Santa Fe Springs location opened on leased property five years ago after New Holland and Doosan encouraged the company to open a store in the Orange County and Los Angeles basin. Scott Equipment Inc. is excited to announce its new purchase and residence of a property in Santa Fe Springs.

The Kobelco equipment line has been a staple for Scott Equipment for the past 20 years.

PARTS & SERVICE

The team has approximately 25 service technicians in 10 service bays between Fontana and Santa Fe Springs.

Scott Equipment and Western Rentals service technicians. (L-R): Joe B., Adam P., Robert A. and Jonathan S.

“

We are very invested in training our employees and this past year is a great example of how effective and imperative training can be to an organization.”

Jason Behee

”

According to Scott Equipment, the company carries a large amount of parts inventory at all times. What they don’t have in stock can usually be obtained in three to five days.

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Scott Equipment works diligently with its customers to provide quick resolutions when a machine needs repairs.

The dealership works diligently each day to provide the same level of service across each department. The team values a small parts transaction just as much as a delivery of a new piece of equipment.

“We carry a large inventory of parts at all times,” said Jason Behee, operations manager. “What we don’t stock, we can normally get in three-to-five days.”

The team has approximately 25 service technicians in 10 service bays between Fontana and Santa Fe Springs as well as six mobile service trucks servicing jobsites daily.

“We hear things like, thanks for being on time often.” said Jeremy Mertz, who has been with the family business since 1993 and is now the rental manager of Western Rentals Inc. “We have the same concerns our customers have. We want them to be on time, meet deadlines and get paid. Every machine is going to go down eventually, especially today with all the sensors and emission controls on the equipment. It is just a matter of time.” Mertz loves when he can partner with the customer and resolve an issue quickly.

Jon Sears is one of the Scott Equipment mobile technicians who has been with the company for 13 years. His specialty is in electrical diagnostic and repair work. One of the topics Sears was most excited to share about is the advancement in technology, specifically telematics in the machines in the past few years. “It has streamlined the service process,” he said. “Now we can diagnose a problem offsite. When the tech arrives, they have a better understanding of the situation with the right parts on the truck. This style of personalized service for each call has been a huge shift for the industry.”

The COVID-19 pandemic has interrupted the supply chain for most manufacturing, but Behee said the pandemic’s impact on the company has been minimal thanks to a very experienced parts team. “They figured out the logistics and manipulated ordering and timing to keep the company and customers up and running. We are very invested in training our employees and this past year is a great example of how effective and imperative training can be to an organization.”

The Scott Equipment team values a small parts transaction just as much as the delivery of a new piece of equipment.

Ron Straminsky celebrates taking care of customers at the parts counter at Scott Equipment for 30 years.

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SISTER COMPANY: WESTERN RENTALS Western Rentals has broadened its used equipment mission well beyond just renting machines, with some 400 pieces of rolling equipment and attachments in its inventory.

Low-bed trucks like these are responsible for delivering and retrieving equipment from all over Southern California for Western Rentals.

Scott Equipment’s sister company, Western Rentals, is the other half of this 50-year success story. Under Gregg Scott’s leadership, Western Rentals has broadened its used equipment mission well beyond just renting machines. Though it does plenty of that, with some 400 rolling pieces of equipment and attachments in its rental inventory. It includes an array of dirt-moving and roadbuilding equipment such as mini- and full-sized excavators, skid steers, skip loaders, wheel loaders, compaction equipment and outfitting custom used water and dump trucks. Western’s fleet of eight low-bed trucks deliver and retrieve equipment all over Southern California.

“Western’s staple customers are small-to-midsize contractors, most who are also family owned,” Mertz said.

“Many times, it’s the company’s owner calling us because they are so heavily involved. What’s neat is it sort of mirrors what we have going on here in this family-owned business.”

Western is part of an intense equipment rental market in Southern California. Mertz said he is “willing to bet we have more rental companies per square mile than anywhere else. It is very, very competitive. As a result, the market is repressed, and rental rates are far too low.”

The leadership consensus is that quality of equipment and customer service are critical to overcoming the competition. “It’s all hands-on deck,” Gregg Scott said.

“My brother and I are available to customers to lend a personal touch. When you’re renting from the corporate rental yards, relationships tend to be corporate driven.

We are proprietors and want to help our customers grow their business.”

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Jason Beehee, operations manager.

Scott Equipment and Western Rentals team members (L-R): Jeremy M., Jacob S., Kevin S., Jason B., Chuck P., Steve H. and Walt V.

Scott Equipment (and its sister companies) employ approximately 70 people, a large portion of whom have worked at the companies for 10 to 15 years, according to Shellee Thomas, human resources and payroll director. “Family” is an all-encompassing concept at Scott Equipment Inc. Thomas ensures that all employees have the support and resources they need from the moment they are hired. Such one-onone concern seldom is found in corporate settings, according to Thomas, “but that’s how it is at Scott Equipment.” This is a recurring theme in conversations with Scott Equipment and Western Rentals employees — the transcending value of working at a family-owned business such as Scott Equipment Inc. means people matter.

Behee concurred that family is a driver at the companies. “I believe the family mindset 100 percent drives productivity. The fact is everyone who works here really enjoys being here. The owners know employees by name and make sure their voices are heard. They feel at the end of the day the people are what really matters.”

Jonathan Sears, service technician.

EMPLOYEES ARE ‘FAMILY’ De La Torre said the family culture goes beyond in-house relationships to include customers. “The owners are on the premises almost every day. If a customer has an issue, one of the Scotts can usually hear the conversation and will come out of their

offices to provide additional insight, experience, and support.”

Mertz added, “I don’t think I could survive in a corporate world. It doesn’t have the same personal touch as a family-owned business.”

“

The family culture goes beyond in-house relationships to include customers.

Art De La Torre, heavy equipment sales specialist.

Art De La Torre

”

Scott Equipment’s sister companies employee approximately 70 people, a large portion of whom have worked at the companies for 10 to 15 years.

COMPANY HISTORY

The San Diego dealership catered to construction customers with products such as the 310B backhoe and 350B crawler loaders.

Richard Scott Sr. began his journey in heavy equipment as a sales associate of a California company, Klein Products, a manufacturer founded in 1957 and still in business today. It designs and builds all kinds of liquid distribution tanks, including stationary water tanks and tanks for trucks and off-road machinery. In 1971, he opted to become a retailer of heavy equipment and opened his own John Deere store — Scott Machinery. The San Diego dealership catered to construction customers with products such as the 310B backhoe and 350B crawler loader. The dealership operated successfully for 25 years before Deere executives began to consolidate small and family-owned dealerships. Scott sold to RDO Equipment Co. in 1996. In 1983, as the economy struggled, Richard Scott Sr. looked for a way to establish his company further north in the Los Angeles market. He purchased a property in Fontana and opened a second store offering several Japanese brands including Mitsubishi excavators. He called it Western Sales and Rentals.

Western’s inventory in the beginning pulled from the Japanese brands he represented as well as gray market used machinery. The

company built out its clientele until, in 1991, the company was split into two — Western Rentals Inc. and Scott Equipment Inc. When the San Diego Deere store was sold in 1996, the sales company and rental company in Fontana were retained and the legacy of the family business continued to grow under the direction of his two sons, Richard Scott Jr. and Gregg Scott.

The dealership operated successfully for 25 years before John Deere executives began to consolidate small and family-owned dealerships.

The original Scott Rentals Inc. facility.

Richard Scott, Sr. (L) and his business partner.

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Scott Machinery’s original facility.

Richard Scott, Sr.

Scott sold to RDO Equipment in 1996.

(L-R): Richard N. Scott, Jr., Kris (Scott) Kassity, Gregg Scott and a family friend pose in front of the original building.

The company built out its clientele until, in 1991, the company was split into two — Western Rentals Inc. and Scott Equipment Inc. 15

EMERGING LEADERS

Scott Equipment and Western Rentals are companies that are well on its way to being led by a third generation of the Scott family. Two sons and a daughter of the co-owners are fully engaged in the process of eventually taking over the company. Their presence in the business is ever present and welcomed by their parents and co-workers. Shellee Thomas expressed, “It’s exciting to see the transition as the children step in. They bring a lot of new and fresh ideas. They offer innovative ways to do things because of their higher education and work experience, sometimes even challenging the previous generation. I firmly believe they have the ability to take the company in a positive directions over the next 50 years.”

Britnee Scott Heckman

Britnee Scott Heckman

The 29-year-old daughter of Richard Scott Jr. joined the family business three-and-a-half-years ago. She earned a master’s degree in business administration from California State University-Monterey Bay and was managing Apple stores when she sat down with family to talk about her future. Britnee worked at the family business in high school and always appreciated the people, the work ethic, and the equipment. It wasn’t necessarily an easy decision to return following her successful 8-year career with Apple Inc., but she shared it was the right decision at the right time. Her biggest challenge as sales and marketing director is not juggling how to market two diverse companies. Rather, it is how to reach multiple generations of construction equipment customers.

“We have a lot of clientele who have supported our business for years, however, we also have a new generation of customers who communicate and find their information differently,” Heckman said.

“We have to find a balance in marketing to both sets of customers.”

A common company core value the third generation spoke of was, loyalty. “We pride ourselves on being loyal to our customers, vendors, and employees,” Heckman said. “Now we have the opportunity to work with multiple generations of company owners. We want to reassure them; we appreciate their business and their trust in Scott Equipment over the past 50 years.”

Kevin Scott

Kevin Scott

The 28-year-old son of Gregg Scott works as a compact equipment sales specialist of Scott Equipment Inc. Kevin grew up around the business, formally making it onto the payroll at age 15 washing equipment. It was the start of an introduction to the inner workings of the dealership. He worked in parts putting together orders and building hydraulic hoses. He drove the parts truck one summer and worked the inside parts counter.

After graduation from Whittier College, Kevin worked two years at WCA, the auction company, before transitioning over to sales at Scott Equipment. Kevin has always had a passion for heavy equipment. “I can’t imagine doing anything else,” he said. “I like what we do here and how it has been able to provide for me and my family.”

He finds pleasure in dealing with the kinds of people who do business with Scott Equipment. They’re all friendly, he said, and have similar interests. “It’s a close-knit community.” Kevin welcomes the challenge of being an owner’s son. He understands the pressure but feels he has been working toward this next chapter in his career for a long time.

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(L-R): Kevin Scott, Riverside compact sales specialist; Britnee Scott Heckman, sales and marketing director; and Jacob Scott, San Bernardino rental equipment specialist.

Jacob Scott The 27-year-old son of Richard Scott has a similar story as he also worked in and out of the family business out at the wash rack, in the parts department and more during his high school years.

Jacob came back into the business one year ago via an operations manager of the Port of Long Beach. He graduated from California State University Maritime Academy, one of seven such specialized schools in the country and the only one on the West Coast. He went to Long Beach upon his graduation and toiled for five years helping manage loading and offloading of shipping containers and overseeing the work of longshoremen.

“It was a hell of a job,” he said, looking back with satisfaction.

Looking ahead, Jacob has begun his immersion in the family business as a Western Rentals representative of San Bernardino County.

His first year with the company coincided with the pandemic’s arrival, so he hasn’t yet experienced a normal year, but things are going well he states.

Pandemic or not, Jacob is glad to be working back in the family business. “I always knew I would come back to the family equipment business one day,” he said. “First, I wanted to go out and try something different while figuring out my own skill sets. It’s significant to be a third-generation family member in a family business.

I don’t take that responsibility lightly.

“I strongly believe there is room for growth. I want to have relationships with customers like my father and uncle have. Some of their closest friends are some of our best customers. As a sales rep, I want to build the kind of relationships that will take us another 50 years down the road. I want our customers and employees to know another generation is coming in to grow the company. This family isn’t going anywhere.”

Jacob Scott 17

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MOVING COMMUNITIES

FORWARD CONGRATULATIONS SCOTT EQUIPMENT

ON 50 YEARS! Congratulations to Scott Equipment on its 50th Anniversary! Thank you for inspiring our business community every day with your remarkable success and leadership.

Louis Goodwin SVP, Commercial Market Executive, Inland Empire/San Gabriel Valley (909) 260-7795 – Louis.Goodwin@53.com

Fifth Third Bank, National Association. Member FDIC.

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50 YEARS

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CONGRATULATIONS TO ON Western Rentals is proud to be a part of the

Scott Equipment Family!

800.823.8008

14635 Valley Blvd. • Fontana, CA 92335

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