They are more established. Equally disconcerting to dealers is the sale of new equipment by rental centers. As rental companies narrow their brand offerings, more manufacturers may consider buying rental companies, he adds. But dealers still have the upper hand in some significant areas. A panel of equipment fleet executives agreed.
More sophisticated service is out of their area of expertise.
Where manufacturers and dealers fail, he says, is in providing consistent product support capabilities on a national level. He points out that local dealers too often view national contractors working in a region as short-term customers, a shortsighted view that needs to be changed. Panel moderator Robert Currie, senior partner at Currie Management Consultants llp, Worcester, Mass., says that dealers need to recognize contractors' changing strategies about equipment assets. Firms are putting more emphasis on total ownership costs and finally, total cost of process, he says. One solution may to be build partnerships and share the risk between contractors and distributors, says Bob Hall, president of Bechtel Equipment Operations in San Francisco.