Mike Miller's obsession with machines started in the sandbox. The 49-year-old Annapolis entrepreneur said he, along with his two partners at Rental Works in Pasadena, never really grew out of it.
"We never really grew up," Mr. Miller said. "We want to be around the machines and the noise and the dust."
The company has a yard full of equipment from Bobcat and Komatsu, from mini-excavators to $85,000 forklifts that can lift up to 44 feet to a 14,000 pound man lift that climbs up to 71 feet. The company, which has more than $1 million in inventory at its Pasadena location, also rents lawn care equipment, carpet cleaners, power washers and many other useful items for homeowners.
Despite steep drop-offs in the construction industry, Mr. Miller and his two partners, David Graham and Ken Wagner, both also of Annapolis, successfully opened their first Rental Works location in Grasonville in February 2007, and its second location on Jumpers Hole Road in Pasadena this past January.
The company works primarily with small- to medium-sized contractors and homeowners, while its bigger competitors concentrate on large commercial builders, Mr. Miller said.
"While we'd like that business, we're focusing on the residential and small and medium contractors, which is more steady," he said.
That business is more steady because people are fixing up their homes rather than selling them in the current real estate market, and doing home improvement themselves to save money.
Mr. Miller, Mr. Graham and Mr. Wagner each have about 30 years of experience in the field. Mr. Wagner and Mr. Graham owned another company called Rental Works, which was started in the 70s and sold to United Rentals in the late 90s. Mr. Graham ran United Rentals' Annapolis store, where Mr. Miller was his field representative.
"After a few years, we decided to do it on our own," Mr. Graham said.
Being a small rental company gives Rental Works some advantages over its competitors. As a small owner-operator, costs can be controlled better than at a bigger company, Mr. Miller said. This allows Rental Works to invest in some more expensive technology, which is often superior, more efficient and requires fewer repairs.
On a recent Wednesday afternoon, workers were lifting 3,000-pound concrete blocks to make a box for Rental Works' new environmentally friendly mobile concrete system, which will be available within the next couple of weeks. It is environmentally friendly because it does not require a huge truck or a batching plant; the concrete comes pre-batched.
The system includes a mixer run by a gasoline motor. Sand, gravel, concrete mix and water are mixed at Rental Works into the tub, which can hold a yard of concrete. The whole system weighs about 6,800 pounds and can be towed with a pickup truck. There is a two-hour period before it has to be poured.
Two years ago, some of the bigger construction equipment companies may not have even talked to Rental Works, but since equipment purchases have gone down, companies are willing to work with Rental Works, Mr. Miller said.
The company also strives to set itself apart in customer service by offering 24-hour service; the calls go to Mr. Miller's cell phone.
"Within an hour I have to make sure that equipment is up," he said.
National companies often wait a day, an accepted part of renting from them, he said.
Rental Works also distinguishes itself with its party-rental business, which includes tents, china, chairs, grills, popcorn and snowball machines.
"Everything from backyard barbecues to fancy catered weddings," said Mr. Graham.
The party side of business has helped pick things up, since construction is down with current economic conditions. Not only is the cost of equipment increasing with the cost of steel, but the company delivers some equipment in tractor trailers, which get 3.9 miles per gallon and run on diesel, which is more expensive than gasoline.
"It hurts because it's more expensive to do business but it helps because people are doing things around the house themselves," Mr. Miller said.
For the homeowner who isn't sure what exactly he or she needs, the company helps figure out what the best piece of equipment for a project is and show the person how to use it.
"We try to figure out the cheapest, quickest and safest way they can get it done," Mr. Graham said.
Contractors use Rental Works for its customer-centered services.
"Being willing to do the little extra really helps," said Ted Neuman, president of Lothian-based construction company Tymatt Inc., a Rental Works customer. "They're really good with the timing of the rentals. You just give them a few hours' notice and they get it."
Mr. Miller said the equipment is more user-friendly and efficient than it used to be. The controls are hydraulic; the engines have automatic transmissions and more horse- power; and the machines burn cleaner with a better fuel economy.
"It is truly amazing how easy some of these controls have gotten," Mr. Miller said.
He said he often lets his 7-year-old daughter and 12-year-old son figure out the controls of new machines under his supervision.
"If they can do it, anybody can do it," he said.
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