As many great things do, it all started from a casual conversation. One that sparked a new opportunity and a “win-win-win” for multiple players in the rental industry.
Some operations — oil and gas exploration, drilling, water blowouts — require powerful, large-scale air compressors. Demand for these types of compressors at rental houses is not always constant, however, making investing in these large capacity air compressors expensive.
Plus, it is not cost-effective for rental companies to keep their capital tied up in machinery used infrequently. This is where re-rental companies come in, filling a critical gap by renting to rental companies, who in turn serve the end user.
American Rental Services (ARS), a nationally known and growing re-rental company headquartered in Lansing, Michigan, recently broadened its product offering to include large Sullair portable diesel air compressors. This collaboration expands ARS’s debut into the air compressor equipment segment.
Re-rental companies like ARS provide an essential service in the rental ecosystem by supplying equipment to rental companies rather than directly to the end users. Here’s how it works: A contractor goes to their local rental house for a large, specialized piece of equipment. The rental company fulfills the order, but behind the scenes, they’ve sourced the machinery in the lot from a re-rental company, which owns and supplies it. This model allows rental businesses to meet customer needs without investing in the large, niche equipment themselves.
“We partner with rental companies to fill a gap,” explained Tom Saxelby, president of ARS. “If [rental companies] don’t have a specific piece of equipment available, they might lose a customer. By renting from us, these companies retain those customers.”
Another benefit? Speed.
Re-rental services offer rental companies the opportunity to get the equipment their customers need right away. Instead of placing an order with an equipment manufacturer and waiting for what can sometimes be a few weeks for the equipment, the rental house eliminates that long time and uncertainty.
Founded in 2020, ARS initially focused on providing telehandlers and booms to rental companies. As the business looked to diversify, a chance meeting at an industry trade show opened the door to a promising partnership with Hitachi Global Air Power.
Recognizing a shared opportunity, the two companies teamed up to serve a broader range of customers. ARS expanded into compressed air by acquiring a fleet of powerful Sullair portable air compressors — including the 1600H, 800HH-900H, and 900XHH-1150XH series — designed for high pressure applications, including construction, fiber optics, and oil and gas exploration. This move not only diversified ARS’s portfolio and customer base, but also expanded access to equipment that might otherwise be out of reach for many contractors.
“Our business philosophy focuses on niche products vs. surge products,” Saxelby explained. “People may not want to buy it, but they do want to re-rent it. We focus on non-commoditized products, and that’s what big air is. Big air is a niche product for us; we specialize in niche products. This partnership puts us into large industrial facilities.”
By aligning their strengths, the partnership delivers lasting value across the rental equipment industry, supporting rental companies, expanding availability, and ensuring customers have access to the equipment they need, when they need it.
Use the checkboxes to select the types of cookies you want to accept, then press the “Save Settings” button. View our Privacy Policy.