Page 77 - Peterson 85 Years and Going Strong

can’t own everything they’ll ever need, rental is the answer. That’s where Peterson comes in. “Nobody owns more Cat equipment in California than Pe- terson,” says Goggin. “It’s a big risk, but it’s also highly profitable if managed properly.”From scrap- ers and generators to skid steers and light towers, Peterson rental companies collectively offer the largest variety of rental equipment in its tri-state territory of California, Oregon, and Washington.
PETERSON’S RENTAL PAST
Before 1990, Peterson’s rental efforts in the tra- ditional earthmoving market were hit-and-miss. “We had a book that listed all the customers who would rent,” recalls Dave Sinclair, retired Peterson salesman (1965–2001). “Most of the machines came back from long-term rent that we had hoped would turn into a sale. Instead, we’d park them out back and called it our rental fleet. It was just a handful of machines. Nothing like today.” That changed significantly with Peterson RENTS, a concept Duane Sr. instigated in 1992 as Peterson’s general manager. “That’s when we bought specif- ic machines to put into our fleet,” says Sinclair,
“so we could offer our customers new, low-hour, high-quality, heavy-duty Cat iron.” The result was a clean, well-maintained fleet of Caterpillar equip- ment, known for their iconic blue tops.
Since then, Peterson’s rental business has devel- oped even more. “Today, if you look at the scope of what we own and how we rent, it’s evolved and become quite impressive,” says Goggin. “We are now a major, major rental house. Rental represents 20 percent of our total revenue.”
CCE: THE NEW ERA OF SMALL
One of the things that drove Peterson’s rent- al growth was the launch of Cat’s new Compact Construction Equipment (CCE) line at the turn of the millennium. CCE was a direct response to the market’s shift toward tightly quartered urban projects, which were fast overtaking large tradi- tional dirt contracts. Cat’s new skid steers, mini excavators, and mini wheel loaders were a big de- parture from the mammoth machines of the past. And it took some getting used to. For one thing, profit was a huge concern. Not only could a couple
Move over big brother—Cat 305E mini excavator versus Cat 538 log loader
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