For many of us, our infatuation with construction machines can be lifelong. From kid shows such as the animated Bob the Builder and Mighty Machines to adult fare like Extreme Engineering and Megastructures, our love of massive cranes, bulldozers, skid steer loaders, and other equipment never really goes away. Seeing construction sites and the building process, we marvel at the machines in action, although rarely question how they got there.

For household projects like demolishing a shed, replacing a deck, or tiling a kitchen floor, it’s a given to easily and conveniently rent a reciprocating saw, circular saw, or tile cutter from big box stores like Home Depot, Rona, or local independents. But at the other end of the market the rental scene is similarly booming, with more retailers renting much larger machinery, including skid steers, scissor lifts, and telehandlers.

And unlike the rental of a drill or pressure washer for a weekend, the rental of bulldozers and other large pieces of equipment requires special skills, insurance coverage, and maintenance, and costs hundreds of dollars per day (although long-term rentals often have discounts of 10 to 20 percent per day). For large-scale works like multi-story condominiums, bridges, and entire communities, heavy equipment leases can last for months and even years.

Rise of rentals
Starting around 1870, the Second Industrial Revolution ran until 1914. In less than 50 years, the world welcomed inventions that changed our daily lives, such as the telephone, lightbulb, and aircraft.

Rail and road construction sped up, as did the need for heavy machinery to keep up with demand. This saw the development of construction machinery still in use today, such as the ‘caterpillar’ tractor. Powered by gas instead of steam, the tractor was the brainchild of Benjamin Holt. The holder of 45 patents, Holt remains best known for putting tracks instead of just wheels on tractors, which gave traction and prevented them from sinking into soft soil.

The years to come saw the introduction of new machinery and refinements on existing equipment, and the emergence of a new market: rentals for everything from farming equipment to construction machinery.

The early days of The Great Depression saw informal rentals, such as someone needing a truck for a day or two for a few dollars. Unstructured at the beginning, this soon grew into numerous mom-and-pop businesses in the 1940s with set rental rates for everything from floor sanders to tractors. By the 1950s, the market boomed to thousands of equipment rental locations across the United States. This coincided with the increase in suburban housing developments and the rise of do-it-yourself handymen and women.

Today, bulldozers, backhoes, excavators, and more are lighter, easier, and safer to operate, and release fewer pollutants. However, heavy equipment remains costly. Even a small new bulldozer can cost hundreds of thousands of dollars; used dozers still run into tens of thousands.

Rental pros and cons
Depending on the size and duration of a construction project, it often makes sense to rent heavy equipment instead of buying. There are quite a few advantages, one of the biggest being the wide number of products available, from trucks and trailers to concrete and compaction equipment like concrete buggies and pneumatic rollers.

In addition, rental machinery is often new, or close to it, and offers the latest technology, such as sensors, cameras, and lights. This not only improves efficiency but can reduce operating costs (compared to older owned equipment) and makes machinery easier and safer to operate.

Other benefits of renting include storage and transportation costs. From cranes to tractors and everything in between, owned machinery represents a significant capital investment far beyond the purchase price itself. There’s the cost of maintenance and insurance. Staff must be trained to operate equipment. And of course, bulldozers and other big machinery need to be safely stored—think massive sheds or warehouses—and frequently must be moved from one location to another. This represents a significant fuel and labour expense and means tower cranes, excavators, dump trucks, and more are usually tied up at one site versus multiple locations.

Then there’s the issue of controlling project costs. Since heavy equipment rental prices are hard costs, they are negotiated in advance, easy to estimate, and unlikely to change; quoted prices for rentals are upfront. Since there are none of the unpleasant surprises that come with machine ownership, such as costly and time-consuming breakdowns or insurance claims, estimates are clearer and staying on budget can be easier.

Keeping up with the EPA
Another benefit of renting compared to buying is emission standards, especially in states such as California.

Regulations for emissions from diesel-fueled heavy equipment set by the United States Environmental Protection Agency (EPA) keep changing, covering everything from construction machinery to farm tractors and airport ground servicing. To meet Tier 4 emission standards, “engine manufacturers will produce new engines with advanced emission control technologies,” says the EPA. Renting means not having to bear the cost of continually upgrading heavy machinery to the latest emission standards or other regulations.

Flexibility is yet another advantage of equipment rental. While ownership has its benefits, it doesn’t guarantee that what you’ve got will always be the right machine for the job. A mini-excavator that’s ideal for backyard trenching will quail when confronted with a planned community of 1,000 new townhomes that requires removing tons of soil and debris. Understanding project parameters means getting the most suitable machinery for the job, instead of struggling with equipment that’s too small or too large.

Of course, there are also construction companies minimizing their fleet through rentals. When a business expands and takes on bigger projects, it may no longer need the aging, space-consuming machinery it used in the early days. Renting enables companies to quickly get the exact equipment they need, free from the responsibility of ownership.

Another benefit of renting is immediate access. Even today, some while after the pandemic slowed supply chains to a crawl, it’s not unusual to wait weeks or months for new machines from the dealer. Not an issue with rentals.

Take a test drive
For construction companies keen on purchasing their own heavy machinery, the rental market provides another valuable opportunity: try before you buy. Much like prospective car and truck owners renting or leasing a new vehicle, renting heavy equipment allows one to get a feel for new machinery and the latest technology and to test performance, functionality, and suitability.

According to research firm Arizton’s North America Construction Equipment Rental Market – Strategic Assessment & Forecast 2023-2029 report, the rental market for construction equipment is soaring. Valued at USD 42.64 billion in 2022, it’s predicted to reach USD 58.49 billion by 2029. This represents a compound annual growth rate (CAGR) of 4.62 percent from 2022 to 2029.

Recent studies indicate that about 62 percent of construction contractors rent machinery instead of buying because of the flexibility it affords them. According to experts, if you use a piece of equipment less than 40 percent of the time, it makes financial sense to rent instead of purchase. So, while there are pros and cons to both owning construction equipment and renting, growth in the market is a clear indicator that it is often best to rent.

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The first thing we wanted to know is how the business continues to stay on top in the face of industry challenges. “I think service is key, and that’s not just service from the standpoint of fixing the truck or supplying parts or whatever it may be; it’s servicing that client,” says President Jason Kelley. “Maybe they need a short-term rental to get them through, or they need [a part] delivered. Even though we don’t have a formalized delivery process, we will do that.”

This willingness to meet customers’ needs has kept the company in business since 1963. “Be it sales or another facet of the business, it just all comes down to customer service,” Kelley summarizes.

A positive work environment supports the team members as they support customers. “There’s always support,” says Marketing Manager Melissa Weber, “and if you have new ideas to bring customers into A&H, [leadership] always fully supports your ideas or ways to make the company better. In general, A&H is a very team-oriented environment. We all work hand-in-hand with each other, which is why I think we have success with customer satisfaction and relationship building with our clients.”

Another key to success has been the company’s focus on equipment rentals, which has been mutually advantageous for the business and the customer. With today’s sky-high prices, buying equipment does not always make sense, so the company’s rental division provides a cost-saving alternative.

“It’s so popular because the price of this equipment today is significantly higher than it was a few years back,” Kelley says. “So a lot of our customers do not have the capital to make that investment right out of the gate. They would rather rent the unit as an operating expense for a period of time before they make that commitment.”

Because the company boasts an up-to-date fleet of rental equipment, customers can take advantage of the latest, most reliable models at a reasonable price. “Most of our equipment is two to three years old, if not newer, and that leads to less downtime for the customer, which helps because downtime costs money,” says Director of Rentals and Sales Operations Jon Neutzel.

The company’s flexibility is another important factor in the ongoing success of its rental division. The team will “work with our customers within their schedule,” he explains. The team also makes it a priority to “have open communication with all our customers as to our availability, our timeline, [our ability] to fit within their window… We’re very upfront about our schedule, and we’re very open to working with the customer.”

The team works hard to “be open and set the expectations for customers; we walk through our processes for getting rentals out and make it very easy in terms of what we require from the customer,” Neutzel continues. “We can tell them what we need… and they come to pick up the unit, and it’s a very quick transition to [get them] back out on the road.” A&H extends customer support by providing all its customers with proper training of the unit. This keeps their crews safe and provides support to efficiently complete their job correctly and on time.

Communication continues after the transaction is completed. “Once they get the equipment returned, we do also send out satisfaction surveys [about] the experience that they had with us,” Weber says. “I feel like [this] sets us apart from other competitors because we take that extra step for our customers.” The team also encourages customers to post reviews online.

This emphasis on communication is also present within the company, not just between the team and their customers. “We have to work hand-in-hand with our parts department and our service departments to keep these units up and running for customers,” Neutzel says.

Another development within the company has been a leadership transition, with Jason Kelley recently moving into the position of President. The promotion comes after many years of working for the company and was a natural next step. “I’ve been [here] 15 years now,” he says. “I came in as management, so the transition started a long time ago. The day-to-day operations—I’ve been running much of the business for a long period of time. So it’s not an immediate [change]. It hasn’t happened overnight.”

Despite the leadership transition, the team will continue to focus on what has long been important to the company. “We’re focused on growth,” he says. “We’re focused on opportunity, getting the right personnel in place, and overall customer support; A&H has always had that. They were always for the customer, always here for the customer… because that’s all we have as a distributor. We’re not manufacturing anything. All we have is our customer base. We continue to emphasize that fact and grow our business off of it.”

With such a strong track record, the future looks bright for A&H Equipment Co. When it comes to future expansion, there will be a particular focus on expanding the rental division, which will in turn drive the company’s overall growth. “Rental allows us to rent to other dealerships, rent to customers outside of our coverage area,” Kelley points out. “We can always expand into different markets, different AR, different territory, different product lines,” he continues. “We always look to expand that portion of our business.”

Growing the rental fleet has not always been easy, especially when dealing with post-COVID supply chain issues, but it is important not only for the company’s growth but for customer satisfaction as well. “Securing units has been a struggle the last few years but we’re starting to see a little bit more of a flow,” says Neutzel. “So we hope to continue to add, just so we can have more units available for customers.”

The company has already expanded its sweeper fleet considerably. Just last year, it rented around half a dozen units, and this year, that number has doubled to over 12 units.

As the company grows, the team wants to stay grounded and maintain a safe, steady pace. “Our goal is to continue to look at what’s available and not get crazy with it,” Kelley says. “From a growth standpoint, you’ve got to be pretty precise on what you’re focused on because we are in a small, niche market. So you’ve just got to make sure you’re making the right decision when you expand—if that’s a new product or a new territory.”

Having a strong team already in place will be key. “It comes down to having the right people when you make the move to grow,” he says, “because if you’re not set up, you’re putting more burden on the current staff,” and risking under-delivering. However, with its customer service such a strong pillar of the company, this team is not going to let that happen. Instead, as it forges ahead, A&H Equipment Co. is determined to keep the strategies in place that have brought it success thus far, including that foundational commitment to the customer.

With their priorities clearly defined, the team is well prepared to take the company to the next level of growth and beyond.

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From lawn and garden to heavy equipment and the unmatched support of its expert service technicians and parts, rentals, and sales teams, Construction Equipment Co. (Sault) Inc. brings the very best to its customers big and small. In the community it calls home, the company brings a standard of service that has gained the respect and patronage of people near and far.

A tradition of service
Construction Equipment Co. (Sault) Inc. has come a long way since its founding, but its definitive period of growth has come under the leadership of President and Owner Dan Valiquette, who has breathed new life and purpose into the operation over the last 15-plus years.

For much of the company’s history, it supplied compressors and other equipment to the local steel plant, but the decision was made to expand its offerings to include a single manlift, which was a bold move considering this equipment was not the industry standard at the time. Luckily, the investment was met with success.

What started with one manlift in the 1980s soon grew to a fleet of 10, and rocketed to 110 under the new ownership. In achieving this, Construction Equipment Co. (Sault) Inc. became the go-to place for parts, equipment, and service. Now, with over 8,000 products from leading brands such as Ariens, Baumalight, Bercomac, Castle Forklifts, Genie®, Husqvarna®, Hyundai, JLG, LS Tractor, MK Martin, Skyjack™, Snorkel, Stihl®, TimberPro, Wacker Neuson, Walker Mowers, and Wallenstein to choose from, the company has the equipment and expertise to support almost any project, from small home repairs to major construction, forestry, and mining projects.

“We do all of it—the servicing, selling, and renting of it. If it’s not working, we’ll fix it. We’ll come and pick it up for you. We’ll drop it off. It’s all about the full circle customer service,” says Danielle Loucks, Accounting Administrator and Media Coordinator.

Customer service, without a doubt, is the company’s key offering. From inquiry to final sale and everything in between, the team goes to great lengths to satisfy every customer no matter what their need. “We do our best to help the customer, whether it’s advice, education of our products, or a little bit of research to answer a question,” says Sales Consultant Christopher Maltais.

This standard of care holds equally true for the customer with a query, the rental customer, the customer buying a two-dollar part, or the customer making a major equipment purchase. Service is service, and for Construction Equipment Co. (Sault) Inc., exceptional service is simply the standard.

“Whether buying or renting, we try to go through each machine as it leaves our door to educate the customer. They’re going to understand better and they’re going to have a better experience with either their rental or their new purchase,” explains Maltais.

When a sale is made, he notes, “we get it all ready. We put it together for you. We register for your warranty. We run it to test it out so that when you come here and pick it up and bring it home, it’s 100 percent ready to go. You don’t have to worry about getting online to register it for your warranty and if you do have an issue, you bring it back here and we take care of the warranty issue.”

Managing growth
This elevated service delivery paired with the right market conditions, as well as the ability to pivot quickly during the pandemic, is why, over the last few years, the company has experienced historic rates of growth.

As a company that prides itself on a job well done, during the pandemic it was forced to quickly adapt its operations to ensure it remained operational without sacrificing service quality. “We learned how to adapt to that, from keeping waiting lists for when product did come in to, when you couldn’t enter the stores, having a table outside. We would go outside to customers to bring them their parts,” says Maltais.

At one point, there was a long waitlist for a chainsaw. It seemed like everyone was a homeowner with a project during the pandemic. However, on top of increased homeowner demand added to its regular demand, the company also saw growing demand from outside its traditional market bounds, which tripled its growth.

Maltais credits the connectivity of phones and the internet for this growth in reach. “At the beginning of COVID, people were calling from all over the place, and we realized, ‘wow, they’re a two-day drive away and they’re still calling us for equipment.’ So that has really opened up the market.”

The company’s market footprint might be bigger, but its commitment to providing exceptional service remains the same regardless of where a service call originates. The team at Construction Equipment Co. (Sault) Inc. makes it happen.

As Loucks says, “If we have rentals go out of town and there’s an issue, we send a service truck out to help them. In a lot of these places—a lot of the mines that are popping up—there’s nobody up there, so if they need help, we want to supply them with that service.”

A market ripe with potential
The tripling of its business during the pandemic was a memorable achievement for Construction Equipment Co. (Sault) Inc., but there are still other market opportunities that it can take advantage of to remain ahead.

The strength of the housing market in Sault Ste. Marie means that contractors big and small are driving demand for equipment. The city was one of several Northern Ontario cities that managed to exceed their targeted housing growth last year.

Likewise, one of the city’s largest employers and one of Construction Equipment’s longest-standing customers, Algoma Steel, is committing more than $700 million to transition to electric arc steelmaking, a more sustainable approach to manufacturing that represents the way of the future.

“Algoma Steel is switching over to a greener facility, so they’re switching everything over, including the equipment. Eventually, they want it to be completely green, so that’s something that’s been in the back of our minds,” says Loucks. “For example, they’re starting to use more battery-powered equipment to help them reach their goals. It’s nice to see them utilizing what we have to help them with that mission.”

Construction Equipment Co. (Sault) Inc. is aware that many organizations are aspiring to zero emissions, and its fleet of battery-powered equipment can support this transition away from fossil fuel-powered equipment.

In addition to the ever-expanding fleet of electric equipment offerings, technicians undergo skills upgrades and training to ensure they are up to date and prepared to help customers through industry changes as well. Change is hard, but with the support of Construction Equipment Co. (Sault) Inc., it doesn’t have to be.

As Loucks explains, “The area has become a place to go, a place to move to, and a place to stay, and it has really expanded on the construction side of the economy. There are a lot of startup businesses in not only construction but lawn care, snow removal, and many facets of what puts an economy together, and we’re very fortunate to have the equipment that those businesses need.”

Rooted in the community
The service and support offered by Construction Equipment Co. (Sault) Inc. doesn’t end with the provision of parts and equipment to customers; rather, the success of the company enables it to maximize its contributions to the greater community through outreach and advocacy work.

A big part of the culture at Construction Equipment Co. (Sault) Inc. is to give back to the community through philanthropic efforts which, Loucks notes, originates with Valiquette at the very top and trickles its way down through the company.

She says, “I highly respect the owner, Dan, and his wife. They are adamant that this is a family business, and it doesn’t just mean their family, it means our families; it’s family first. You’re proud to say that you work for him because of how he is not only in the workplace, but how he treats and helps others in the community as well.”

Examples of the community outreach efforts of the Valiquette family and the company include SkiAbility Algoma, which is an adaptive waterskiing program that provides persons with disabilities the opportunity to take part in this activity in a safe and fun environment.

“He fundraises for them; he provides his time, his boat, his machines. It’s such a fantastic feeling to watch them do that—you’re so proud of them that they donate so much of themselves to these different organizations and charities,” says Loucks.

Further, Construction Equipment Co. (Sault) Inc. supports the community through the donation of machines to Touch A Truck events, the Bon Soo community winter carnival, the Sault’s Christmas Parade, and sponsoring local sports teams. Through this philanthropic work, Construction Equipment Co. (Sault) Inc. has become a community within a community, ready and willing to support those who rely on it and to support each other in the process of facilitating growth and success.

Whether it is through parts, equipment, or outreach, Construction Equipment Co. (Sault) Inc. places service above all. This is clearly reflected in the consistent growth and the positive reputation of the company throughout its long and storied history, and the rich potential it still has in looking to the future.

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