37
IRN NOVEMBER-DECEMBER 2013
SIMPLEX EQUIPMENT RENTAL INTERVIEW
around $15 million (€10.6 million).
He describes the change in strategy as part of
a “what’s best for us” process; “We were doing
so many things and it was very successful at one
point, but when it started to be not-so-profitable,
we thought, ‘Well, what are we doing that’s not very
good for us?’”
If corruption in Quebec is having an impact on
the construction sector it hasn’t stopped Simplex
from maintaining its level of business. Last year
the company pulled in C$75 million (€53 million) in
revenues and it expects 2013 to be around the same
figure.
Although aerials and forklifts are a big chunk of
the business, the company offers a wide range of
products, even down to small equipment such as
floor sanders – the fleet comprises 55000 pieces
of equipment, with roughly 4500 items of “big
equipment.”
The other challenge for Simplex is pricing, one
that rental companies all over the world will
recognise. “Ten years ago, the main reasons people
did business with a company were availability,
service and price,” says Mr Véronneau, “Now it is
price, price, price. ‘We don’t care about service.’”
Over the last decade, Simplex has worked hard
to raise its rental rates, with some success, but Mr
Véronneau admits prices have gone down across the
board and competition is “very, very high.”
Competition from majors?
United Rentals is one competitor among the major
US players, entering Canada in 1998 with the
acquisition of Quebec-based Perco (United also
boosted its Canadian operations in 2011 by buying
Venetor, a Toronto-based independent).
“They bought our major competitor,” Mr Véronneau
says. “But since then, we don’t feel any other big
rental company competition. They do what they
have to do and we do what we have to do.”
Most of its competition comes instead from
smaller and mid-sized players. While the number of
independents and smaller operators has increased
across Québec, says Mr Véronneau, the demand for
equipment has remained the same, with the result
being pricing pressures.
“This is why pricing is off,” he tells
IRN
. “People can
ask for low, low prices…People in this market right
now can pay lower rates than what they did 10 years
ago for the same equipment. The discount in pricing
is 20% more than 10 years ago.”
In such an environment, efficiency is all-
important, so Simplex has started a major overhaul
Simplex story
Founded in 1907 by Louis Henry Véronneau,
Simplex Equipment Rental has remained a family
owned and operated business, and now spreads
across most of Quebec with 40 branches and
650 employees.
The business started by manufacturing floor
sanders – even manufacturing in Paris, France
in the 1920s. Then during the great depression
years it started offering floor sanding
contracting services.
In the post war years, with the business now led
by Louis Henry’s son Roger, Simplex moved into
the rental of sanders. By 1957, under the third
generation, the shift to rental was complete, with
a fleet comprising sanders, buffing machines
and circular saws.
Simplex – the name comes from a railway
locomotive that Louis Henry worked on early
in his career – expanded into the rental of
contractors’ equipment in the mid-60s, with
forklifts added in 1967 and aerial platforms in the
late 70s, setting the template for the present day
business.
André Véronneau, one of the fourth generation
of the family to work at the business, became
CEO in May 1986.
From left: Sylvain Damour, vice president of finance; André
Véronneau; Euclide Véronneau, assistant to CEO and André’s son.
A truck full of scissor lifts waits to be unloaded at Simplex
Equipment Rental in Montreal.
ATTENTIONPLANTHIRERS
MCS HIRE SOFTWARE TICKS ALL THE BOXES
FOR FASTER RENTAL PROCESSING!
Quick and
simple contract
processing
Workshop
ensures plant
is fit for hire
In-depth analysis
of your plants’
availability
Worldwide,successful equipment hirers chooseMCS software solutions. Findout howwe can
help youbuild amore efficient rental business.Call us on+44(0)1628 828 000 or visit
