On Wednesday, March 23, Ahern Rental released its 2009 annual financial statement showing signs of strong customer loyalty due to their strong sense of customer service and top of the line construction equipment rental services. While construction markets continue to be hit hard by the financial crunch that the nation is going through, Ahern is continuing to focus on the man lifts and high reach units market that has made it a success over the years. With confidence in their future operations, Ahern has already opened 5 new branches in 2010.

 

Over the past 4 years, Ahern Rental’s revenue has remained relatively consistent, while they have expanded to include an additional 17 branches in 2009, supported by over 1,500 employees across all departments. Throughout much of the risk assessment, company overview, and future strategies, Ahern makes it clear that they value their customer base and intend to offer the same excellence in customer service and product quality they have over the past 50 years.

 

Over the course of the next year, Ahern Rental anticipates the quick relocation of portions of their rental fleet to high demand markets using their floating fleet management system. This system allows them to transfer man lifts and other rental equipment between branches without requiring constant reassignment of cost, depreciation, and maintenance beyond its usage at the facility. Instead, the construction equipment rental company allocates all heavy machinery to a central cost center, and then determines which rental location to place the product based on customer need and logistics.

 

Additionally, Ahern is looking at expense reduction through renegotiation of vendor contracts, reduced purchase of new fork lift rental fleet replacements, and a reduction to senior management bonuses and commissions. The results of these actions are expected to bring an increase in the cost of maintenance and repair, while reducing overall expenditure for the company. Since the turn of the year, Ahern rental has already managed to complete a transaction that reduced their overall debts by approximately $55 million.

 

Ahern Rental was founded in 1953 in Las Vegas, Nevada, and has since grown to operate 71 locations in 21 states. As of 2008, they ranked the 7th largest construction equipment rental company in the United States, offering their services to business and residential customers alike. While Ahern Rental provides products from backhoe loaders to lawn mowers, their focus is on high reach units, such as man lifts, forklifts, and boom lifts, with over 60% of their fleet, and 75% of their fleet cost being assigned to them.

 

About the Author:

John Robertson is a financial analyst and writer who earned his degree while working in the man lifts rental and sales field. Since graduation, he has continued to watch the construction equipment industry, studying the actions and reactions of the larger businesses. Mr. Robertson’s interest in Ahern Rental is due to their continued focus on man lift and fork lift rental equipment, and the successful implementation of business strategies around it.