Editor’s note: Mike Flesher, owner of Taylor Rental Center, with locations in Vestal and Ithaca, N.Y., will become the 50th president of the American Rental Association (ARA) at the conclusion of The Rental Show 2012 in New Orleans. In 1984, Flesher was faced with a decision — advance his career at the retail company he worked for by moving his family or stay in Vestal, where he and his wife, Jo Lynne, were both born and raised. Flesher decided to stay and purchased a Taylor Rental Center franchise even though he had no rental industry experience. “When I started looking for a business, I really didn’t have a particular business in mind. I just wanted to buy something I could grow and nurture to provide for my family. This one popped up. A gentleman had bought a Taylor Rental franchise for his son. The son ran it for about seven years and wasn’t very successful. His son went to work for the local utility company and the father put it up for sale. I was intrigued by the rental business. I talked to him and started getting more interested. I went to my banker, developed a plan, secured financing and ended up buying the business. I had no background in rental. I didn’t have any mechanical expertise. I was the guy who, when my lawn mower stopped running, bought a new one,” Flesher says. Soon after he purchased the business, the company joined ARA and Flesher became involved locally, then regionally and nationally. Flesher recently spoke with Rental Management about becoming ARA’s next president. The following is an edited transcript of that conversation.

RM: What convinced you to become more involved in leadership in ARA?

Flesher: For me, it began because I didn’t come from a background of rental. It was all new to me. As we got into the business, my wife Jo Lynne and I started talking to other people and were involved in local associations and went to the regional shows. I came from a retail background, working at a corporation. You didn’t share ideas with your competition. Meeting more people in the rental industry, we found that it was so personal. That was an eye opener. It encouraged me to become more involved because of the friendly nature of the business and I wanted to grow my business.

RM: How did your volunteer activity with ARA evolve?

Flesher: Once people are exposed, it kind of snowballs. The more people you meet, the more people you want to meet. The more ideas you gather, the more you want to share your ideas. As I got more involved, I realized that everything I’ve really done in the rental business, I learned from somebody else. I gleaned all this information from people as I’ve gone along, so I should really share that. My way of doing that was attending meetings, becoming involved as treasurer, president of the local and state, helping with seminars and that kind of thing. It was a way of giving back and I’ve enjoyed doing that. This association brings great networking opportunities for members — it’s a great benefit. I’m excited to see the ARA of New York reactivated as a state association and encourage New York members to get involved as it gets underway.

RM: How would you like to start off your term as ARA president?

Flesher: With enthusiasm for the future. I’ll continue to implement the ARA Strategic Plan, which is our guide for moving the association forward. It’s so helpful as a board member and an officer to have defined goals and annual strategies to help guide our work for our members. ARA has a plan in front of us and we can, through communicating with our members on an ongoing basis as we do, look at this plan every year and get results for members. The goals are known to everybody and it really is our guide for program work. I think if I had to say anything about what I would do moving forward, it’s to emphasize the marketing aspect and getting the rental industry in front of consumers. That’s a key priority due to the advantages of rental within this economy. I think ARA is on the right track with the web work we’re doing now, driving people to our own websites and building awareness. One of our key strategic goals is to build awareness of our industry and to make people aware of the equipment rental industry. We need to continue to emphasize industry awareness and value this year.

RM: There is an opportunity right now for the equipment rental industry to tell its story about the rental option and people today are more likely to listen because renting equipment saves money.

Flesher: You hit the nail on the head. We have the best opportunity that we have ever had as an industry to tell our story. ARA is using that in our advertising. “Why buy, when you can rent and save?” That could be my headline next week. People are aware of their spending now. From a business standpoint, people are strapped for financial resources; they don’t have the money. If they want to take on a big project when rebuilding starts, they will have a harder time securing the capital due to changes in lending qualification. The banks are not offering money readily yet. As they move forward, the natural opportunity for them is to utilize rental companies more. That includes businesses and contractors as well as homeowners. They will think twice about buying that pea shooter of a pressure washer now, but we have to get that message to them and reinforce it. “Why buy it and why maintain it? You will pay $500 for a machine to use once during the year that will probably break down on the second use. You can rent a professional model that will do the job better for less and service comes with it.” ARA is broadcasting that message. If there ever was a time to have the message sent far and wide to be heard, now is the time.

RM: How did you end up in the rental industry?

Flesher: This is my hometown. I grew up in Binghamton. Vestal and the Newark Valley are all part of the greater Binghamton area. When I got out of the Army in 1971, I went back to school on the G.I. Bill. I wanted to either be an accountant or lawyer. I took up accounting and then thought I was too physically active for that. As my family started growing, I had to go to work and couldn’t continue my education. I was in insurance for a number of years and then switched into retail working for a lumber company. I moved into management, but then you get on a treadmill and they want you to move here and there. My only real opportunity for personal growth at the company was to move. Jo Lynne and I decided we didn’t want to do that, so that’s when I started looking for a business. I really didn’t have a particular business in mind. I just wanted to buy something I could grow and nurture and provide for my family. This business popped up. I went to my banker, developed a plan, secured the financing and ended up buying the business. I had no background in equipment rental. I didn’t have any mechanical expertise. I was the guy who, when my lawn mower stopped running, bought a new one.

RM: What products and services do you use from ARA?

Flesher: We use a lot of them in our business and have used the ARA services since joining in 1985. Top of mind is Rental Management, which is huge for all rental businesses. Rental Management is as well done as any magazine or publication you can pick up. It is a “must read” every month. We have been regular attendees at The Rental Show every year. I insure with ARA Insurance due to the quality of coverage and service. I have been active in ARA’s government affairs program, having chaired the member committee for a number of years. We use the educational programs like the Certified Event Rental Professional (CERP) program and driver training and management products, like the benchmarking Cost of Doing Business Report. No one should be without the ARA contract book because your rental contract is key to your business. ARA members benefit greatly by being aware of all that is available. Almost any question you have about the rental business you can get a start or a guideline from ARA. By being involved in the association, you have lots of opportunities to talk to your peers, who ultimately have all the answers because they’ve likely already gone through it. It’s a great organization. I also serve on the board of the ARA Foundation and value their philanthropic benefit to the industry.

RM: Why did you decide to go with ARA Insurance?

Flesher: The price structure for the state of New York is always an insurance issue. It’s a tough state for insurance. ARA Insurance was competitive within New York. Coverage was good and it made sense to me to sign on. As I got to know more about ARA Insurance from serving on the ARA Board, I learned it has driven the insurance industry to act favorably towards rental businesses where the insurance industry didn’t understand us. ARA owns ARA Insurance and it is a member-driven organization. They are the only rental insurer that reinvests exclusively into our industry. ARA Insurance is the only insurance that writes rental businesses exclusively. ARA Insurance knows the rental business and constantly looks for feedback and ways to improve their product for us. Many of the innovations and improvements they’ve initiated have been carried forward by other insurance companies. ARA Insurance has improved the market for all rental businesses and I think that’s what people overlook sometimes. Store owners sometimes are just looking at price, particularly over the last three or four years. They don’t realize what ARA Insurance gives back to the industry, including the materials that we get and the risk management articles that they write. Those articles in Rental Management magazine and Rental Pulse are written by ARA Insurance staff members based on their industry and insurance expertise. Any profit they make is reinvested in the rental industry through ARA programs and services to help improve the rental industry.

RM: How important is government affairs and ARAPAC for ARA and its members?

Flesher: Government is a key part of all our rental businesses. It’s one of those arms of ARA I feel is very important because most of us can’t monitor all of the legislation and regulations that affect our business as effectively as ARA does. Government affairs does a great job on the national level and in helping state associations develop plans and pursue issues that they have within their state. To have them guiding the way and representing us really helps. Members can gather information through ARA and be armed when we go to our legislators — local, state or national. Members can make the visits, but we don’t have the time or resources to gather the significant information. That’s the role ARA’s government affairs plays for us. ARA is the spokesperson for our industry in government affairs. ARAPAC, ARA’s
political action committee, is a vital part of this program for communication of our key industry issues to legislators. I encourage everyone to become members and contribute.

RM: What do you get out of attending The Rental Show?

Flesher: For me personally, it is the buying show. Everyone from our company is looking to ask questions about equipment we’re thinking about purchasing or replacing. We want to kick the tires and witness the innovation to stay a step ahead of our competition. Our customers want that, too. They want to come in to our business and have the unique or most up-to-date piece of equipment that isn’t just neat to see, but helps them get their job done more efficiently. We also go for the education. For those who attend with us, we review the seminars, who is
going to what and what to talk about to other employees when they come back. It’s a process. We have a plan on who is going to see which vendors and gather the important information. The No. 1 reason I attend is for the networking, which is phenomenal. Not only to see old friends and meet new ones, but to pick their brains and get those ideas flowing to improve my business.

RM: How can you serve as ARA president and take care of your business responsibilities?

Flesher: First of all, I’m so fortunate to have my wife, Jo Lynne, in the business. We have a family business. She has always handled the bookkeeping and accounting and generates our reports. She understands the business intimately, the same way I do. Having her there is reassuring, particularly when I travel on business. We are partners in ARA leadership, too. I wouldn’t be able to commit my time as I have through the years without her support. Over the years, we’ve also built a great staff. We have great managers and staff members in both stores with a lot of experience who know what they are doing and they do it well. I feel confident when I travel that the business is in good hands. I’ve depended on the staff more in recent years. I believe in delegating. You have to let go to have a successful business because as you grow, if you try to do it all yourself, it’s impossible.

RM: What’s your secret to keeping good employees?

Flesher: I’d like to think we are a good employer, but if you compare us to larger businesses and manufacturers, I always worry because we can’t provide the same level of benefits. What we have is that personal touch. These people grew up with us. Jo Lynne and I know their children. We even know their pets. They know us. They’ve come to our house. We’ve had so many gatherings throughout the years. You get to know them on a more personal level, so you have that connection as well. They know you have their best interest at heart and you’re going to do the very best you can for them as long as they do the best they can for you. To put a finger on any one factor is difficult, but letting loose of the reins and letting them have more responsibility to build the future of the business is also a factor.

RM: How has your business evolved?

Flesher: We are a Taylor Rental franchise. We bought another store in Ithaca and turned that into a Taylor Rental as well. When we got into the business, my only knowledge was from the prior owner. He liked the contractor end of the business and that was our primary business. At that time, we were 60 percent contractor, 35 percent homeowner and less than 5 percent party. The former owner said to me, “I had to buy this stuff as part of the franchise, but I’d get right out of the party business. It’s just a pain in the neck.” He didn’t like it at all, but then phone calls kept coming in for party items, so I thought maybe I would buy more tables. I can tell you my inventory: six round tables, 14 long tables and 66 brown Samsonite chairs. I always recite that. I had two party canopies that today I wouldn’t even use for ground cover. There was a small selection of china, glassware and silverware as part of the franchise. We started growing it from there. We did very well with contractors, but the party business was where the real growth potential was. We couldn’t go wrong. Whatever we bought rented. After about 10 years, we kept growing and then leveling out the pace wasn’t as fast. About 10 years later, we bought the second store in Ithaca because we were doing work with Cornell University. In our area, as we built the party business, we were the innovators. We were the first people to have all white tents, first with white chairs and the first to have more than one pattern of china. We kind of stimulated the growth of the party business in our area and others have followed.

RM: Where are you today in terms of your inventory mix?

Flesher: Right now, it’s almost reversed to between 50 and 60 percent party and event. In Ithaca, we are heavier in party than in Vestal, but we are still over 50 percent in Vestal. Probably 30 percent comes from the contractor business and the rest is homeowner. On the party side, the opportunity was there for growth and there was demand in the area, so it seemed easy. We were a big IBM community. Then in the late 1980s and early 1990s, they started pulling out. That was a shock to our system; our population has been declining ever since. We’ve had to take a closer look at managing our assets because the market dynamics changed and it wasn’t as easy to gain business anymore. There are opportunities for growth, even today, but you do have to look at things very closely and have a good system for analyzing your business.

RM: How did all the flooding in your area this fall impact your business?

Mike Flesher: The Susquehanna River runs right through the town. People often call things like this a 100-year flood. Back in 2006, some people called it a 500-year flood. That was huge. Then five years later, this flood was much worse than that. Areas not affected in the least before were wiped out. We weren’t affected directly, but within blocks of us, there was devastation. Being in rental, we felt the effects of that in the form of increased revenue, but on the other hand, we’ve donated to more than 30 flood relief efforts. I’ve said to everybody, “If it’s for flood relief, give them what they want — tables, chairs, bounce houses, tents.”

RM: What do you see as ARA’s biggest challenge over the next year or two?

Flesher: I think one of the big challenges is growing the membership. ARA leads the way in every aspect. The revenue forecasts by ARA in partnership with IHS Global Insight are important to keep people aware of the future potential of rental, which is great. The new ARA Rental Market Metrics™ will be very significant for this industry. To have a guideline where we can measure our company performance in the industry is huge; we have never had that before. ARA is the face of the equipment rental industry. The industry is becoming more sophisticated as we move forward. The “good old days” are gone. Rental businesses owners need to have an awareness of the industry to move forward and grow their business. ARA provides that and key information to have a successful business as well. People need to get involved with ARA because we need input from ARA members. That’s the message we have to get out and that’s our challenge.

RM: What do see as the key challenges for the industry?

Flesher: The one affecting everybody across the board, big and small, is financing. It’s very hard to get money. Being the type of businesses we are, we need a lot of capital. Having access to that capital is a huge challenge. What ARA is doing to recommend voluntary standards for calculating rental performance metrics will go a long way in helping us paint a clearer picture to lenders of what we are as an industry and how we do business.

RM: As the incoming president, is there any message you have for members and those in the industry?

Flesher: If I had a group of people in front of me, I would say, “This is your business. This is your career. You’ve chosen this way forward to provide for yourself and your family. You have to be a part of it and invest in your future. If you want to grow your business and increase your knowledge about your chosen profession, you have to be involved in ARA. It’s your industry and you need to be a part of it, not only contributing, but benefiting from the experience. Your involvement makes a stronger association to serve your needs. It’s an enjoyable and worthwhile experience.”