June 6, 2024
Photo courtesy of Belmont Party Rentals
There is a real sense of continued optimism in the event rental world. It can be seen in the latest American Rental Association (ARA) survey of event rental operators. Most surveyed in April 2024 reported an average revenue increase of 23 percent in Q1, with 70 percent also expecting a revenue increase in Q2. And 49 percent reported the situation for event rental is getting better overall.
That is a far cry from a few years ago when everyone was just trying to adapt and survive after the devastating gut punch rendered by the coronavirus (COVID-19) pandemic.
Even with some lingering challenges from those days, the trend for growth was predicted by Dan Farrell, regional vice president, Marquee Event Rentals, Mission, Kan., and ARA Event Rental Shared Interest Group chair, in his outlook that appeared in the December 2023 issue of Rental Management: “With careful planning and a close eye on margins, successful events are executing well and will continue to grow through 2024,” he said.
That prediction has become reality. Event rental operators continue to find ways not only to rebound but also to thrive. Some have done so at incredible rates as highlighted in Rental Management’s 2024 Market Movers, which features some of the top event rental companies of all sizes that have significantly grown their rental revenues between 2021 and 2023.
While each has a nuanced story about their growth path, common themes have emerged. Taking lessons from the pandemic, doubling down on business fundamentals and adopting new strategies for increased efficiencies and productivity are key. Some are even changing how they operate. Take a closer look at how those themes are put in practice by some on this year’s list of event Market Movers.
COVID magnified the value of fundamentals
The fundamentals of relationship-building and customer service are vital lessons derived from COVID, these Market Movers say.
Shannel Aiken, owner, The Grand Event Design and Décor, Northport, Ala., saw this firsthand.
A lot of her growth was from “building relationships with people during their toughest times,” she says. “A lot of our friends were closing down during COVID and didn’t know what to do. We were actively letting them know we were there, saying, ‘We have a business too. We know what you’re feeling and going through.’ That helped people spread the word about us and trust our business.”
That empathy “put us in rooms we never thought we’d be in. And in those rooms, people said, ‘We want to partner with you,’” she adds.
Debra Shipper, chief operating officer, Event Equipment Rentals & Sales, Hodgkins, Ill., grew up in her family’s rental operation. Those fundamentals are part of her DNA.
After the Shipper family sold their business in 2007, they re-entered the market in 2017 with Event Equipment Rentals & Sales. Just a few years later, COVID hit.
“It was heartbreaking,” she says, but they were determined to not allow the pandemic to have the last word.
Now working with a smaller staff, all of whom are dedicated “to quality, efficiency and labor savings,” Shipper says, that dedication and “our reputation for customer service, including our relationships with our customers and our response times … has made us a leader.”
The right team is a must
Brandon Sayre and his cousins, Briar Sayre, CERP, and Joey Jewel, also grew up in their family’s rental operation. They, like Shipper, know the importance of those values and investment in the right people to carry them out.
So when they struck out on their own and purchased ACC Rental, Hilliard, Ohio, in 2022, they knew what to do.
“We strive to offer great customer service. I mean, that’s No. 1,” says Brandon, president. “For our team, we like to hire those who are hungry and have a good work ethic. A hard-working team can be stunted by a bad process, so we try to make our processes and our team as efficient as possible” because “our team is our company. They project to our customers what our goals are and what our qualities are. We focus on them and giving them careers, which helps us overall.”
At Belmont Party Rentals, St. Louis, hiring the right people cannot be overstated, according to Paul Belmont, president, and his son, Andrew, vice president.
“It’s worth it to pay well for good people,” Andrew says. “When you skimp, you get bad employees, and that’s a bad reflection on the business.”
Adopting new technologies is also a game-changer
The team at Belmont Party Rentals relies greatly on its new software — Adelie Logistics. “It’s unbelievable and so intuitive,” Andrew says.
“Our drivers carry their phones with an app that they use to follow routes, text the customer and make notes about the order,” Paul adds. “We’re close to being a paperless company. And it’s all stored so if, heaven help us, there’s a fire, we can access it all from home.”
An online reservation system and texting option have been successful for Event Equipment Rentals & Sales. “We can text the customer their contracts to sign and pay. And then, internally, we use a lot of communication to get everything done,” Shipper says.
The other rental operations have incorporated new technology as well, but they also warn others to be prudent in their investments.
The team at ACC Rental has invested in Tent OX machines and good rental software. “Because we’re younger you would think we would be all about technology, but sometimes it can be burdensome. You have to make sure it is actually going to make you more efficient,” Brandon says.
New models of doing business can make a significant difference
Photo courtesy of ACC Rental
For Event Equipment Rentals & Sales, the business-to-business model has been the most effective for its growth.
“We’re the middleman to a company’s growth,” Shipper says. “There are many rental companies that can’t afford to acquire the assets they need to grow their business, get contracts and build relationships with new customers. So, if a rental company is just starting out and they’re trying to build a relationship with a stadium and they need 20,000 chairs, they can get the business by renting from us. When the rental company is in a financial position to grow, they can also purchase the chairs from us.”
After COVID, Juan Munoz Jr., president, JMJ Production Services, Austin, Texas, took the business-to-business model to the next level — using contracted labor with his family handling the administration.
“When the pandemic hit, a bunch of guys who were loyal to me were furloughed. I wanted to make sure they had yearlong work. I trained those guys, made sure they were OSHA 10 and 30, forklift and MEWP (mobile elevating work platform)-certified. I had them follow my protocols and procedures. I also taught them how to create their own LLCs. Now each of them has their own employees and contractors. I pay the LLC to do the work,” he says, adding that his growth has skyrocketed by shipping out inventory and labor to job sites around the country.
Each of the Market Movers has found their own winning mix of these themes, making 2024 a year not one of adapting and surviving but of growing and flourishing.
