American Rental Services (ARS), a growing re-rental company headquartered in Lansing, Michigan, has purchased a number of HGAP’s most powerful high- pressure portable compressors. ARS doesn’t use them itself; it is a re-rental company that makes equipment such as big booms and big reach telehandlers available to other rental companies, which then provides them to contractors.
Re-rental companies provide a valuable service by filling a gap in the rental industry. Here’s how it works: There are times when contractors turn to equipment rental companies for large, specialized equipment they may need for a specific use. However, these machines are usually costly and rental companies may not stock the equipment if they can’t rent it out enough or if the entry cost is too high. That’s when they turn to re-rental companies, which provide large, specialized and often more costly equipment to rental companies, which in turn rent them to their customers.
“We partner with rental companies to fill a gap,” explained Tom Saxelby, president of ARS. “If (rental companies) don’t have a specific piece of equipment available, they might lose a customer. By renting from us, these companies retain those customers.”
A Chance Meeting Becomes a New Opportunity
HGAP’s agreement with ARS began as a casual conversation at a trade show. Jennifer Shalik, Hitachi Global Air Power Business Development Manager, Strategic Accounts – Rental and Infrastructure, was attending the 2023 H&E equipment show in Orlando, Florida. During a break, she struck up a casual conversation with two other attendees. One of those people was Tom Saxelby. ARS, which originally focused on providing specialized lifts and telehandlers to rental companies, was looking to expand its product offerings — and that included high-pressure air compressors.
“Our business philosophy is to focus on niche products that people don’t necessarily want to buy, but that are needed at certain times,” Saxelby said. “We focus on non-commoditized products, and that’s what big air is.”
Jennifer brought together her colleagues Todd Rozar Vice President, Portable Sales and Brad Whitfield, Director Portable Sales to meet with the ARS team. Discussions were held. Contracts were signed. And ARS purchased a series of HGAP’s compressors — 1600H, 800HH-900H; and 900XHH-1150XH — that are typically used in high pressure applications, including construction, fiber optics, and oil and gas exploration.
“This is a win for everyone,” Shalik explained. ARS benefits because it diversifies its product line and customer base; HGAP benefits by getting its compressors into the hands of people who would not ordinarily purchase them; rental companies retain their clients; and contractors get their hands on the equipment they need.
Shalik said that the relationship has been a success. The big air Sullair compressors have been rented out consistently since the agreement was made. And, in some cases, the rental company allows ARS to store the larger capacity air compressors on their property, saving the ARS money while helping support the rental company’s available inventory.
The partnership between HGAP and ARS deepened last October when ARS representatives visited HGAP’s Michigan City facility. The two-day visit featured a day of technical training followed by sales training and a discussion of after-market services. And the partnership has good growth potential; at the 2024 H&E show in Dallas, Saxelby said that he and Shalik will join forces to discuss new opportunities with potential customers. Shalik said that HGAP’s focus on always being alert for new opportunities and an emphasis on forming strategic partnerships was key to making this connection.
“HGAP people have a passion to be on the lookout for new opportunities,” Shalik said. “We want to work creatively and find novel ways to grow. This relationship is a good example of why we must all act as ambassadors for our company every day.”