Volvo Construction Equipment Rents Inc. (Volvo Rents) has announced immediate plans to have more than 100 equipment rental franchise locations open throughout the United States by the end of 2005 and to provide more than $2 to $3 million per store in operating and inventory financing to assist qualified franchisees. The company’s plans call for continuing growth as franchises are added at locations throughout North America.
Projected construction spending in 2004 exceeds $106 billion in the top 10 U.S. markets. (Source: McGraw Hill Construction Dodge Forecast, 2nd Quarter 2003).
Volvo Rents stores rent general construction equipment including Volvo Construction Equipment products such as backhoe and skid steer loaders, compact wheel loaders and compact excavators as well as general equipment, such as scissor and boom lifts, air compressors, compaction equipment and air tools from affiliated suppliers. The focus is on daily, weekly and monthly rentals to construction, industrial, commercial and homeowner customers.
“The construction equipment rental industry is booming,” said Nick Mavrick, vice president of global strategy and marketing. “Our strong brand recognition, the growing demand for construction equipment and Volvo Commercial Finance’s ability to provide a comprehensive financial package... allow us to look to the future with great enthusiasm.
In 2001, Volvo Rents announced its decision to enter the construction equipment rental business with a franchise model. Company executives saw franchising as the ideal growth model, creating a channel to take its expanding line of compact equipment to market sections nationwide, while offering opportunities for local entrepreneurs in the equipment rental industry.
As of mid-August, Volvo Rents, the nation’s only original equipment manufacturer (OEM) franchisor, has grown to 48 locations in North America and serves more than 35,000 end-use customers. Volvo Rents was recently ranked No. 19 among the top 100 rental companies in the United States by Rental Equipment Register magazine (May 2004).
For an entry franchise fee, Volvo Rents franchisees receive use of the Volvo brand, a fleet purchasing program for both Volvo and non-Volvo products, proprietary business planning software, proprietary customer relationship management software, a proprietary point-of-sale operating system, training, facility design, operating manuals and regional and local marketing.