Compact Power, Fort Mill, S.C., confirmed last week that it has created a new company, Compact Power Equipment Centers (CPEC), and has reached an agreement with The Home Depot that will result in CPEC acquiring and managing large towable fleets of rental equipment in more than 100 select locations of The Home Depot. The Home Depot, as previously reported, will maintain management of its Tool Rental Centers.
Boxer Equipment, Compact Power’s affiliated brand, is not part of the transaction. Boxer and its manufacturing partner, Mertz Manufacturing, will remain a separate entity with a continued focus on growing its dealer network both domestically and internationally. Mertz manufacturing produces both the Boxer brand of equipment as well as specialized equipment for oil field applications.
Compact Power Services, which already maintains small machinery for such companies as Wal-Mart and Best Buy, will expand its service business through the partnership with The Home Depot and will be a part of CPEC with the rental and mobile services combination operating under separate management from the manufacturing and distribution business.
“Compact Power Equipment Centers was created for this opportunity. It has a separate board and separate management. The Boxer side and Mertz Manufacturing will continue to focus on manufacturing and distribution,” said Andy Lewis, CPEC’s marketing communications manager.
CPEC initially operated a pilot program with The Home Depot in Charlotte, N.C., and that model will now be rolled out to about 115 The Home Depot locations in Georgia, North Carolina, Oklahoma, North Carolina and Texas. CPEC is acquiring towable equipment fleets from The Home Depot as well as adding new equipment to its inventory.
“We’re going to leverage the resources of the No. 2 retailer in the country, but we will still continue to focus on our niche expertise, which is equipment under 100 hp. We will have towable power equipment available for rent. You will not see the gigantic iron, but you will see a more expansive fleet then what a typical customer might be used to seeing at The Home Depot,” Lewis said.
“The Home Depot Professional Services business caters to a contractor base and wants to provide solutions the customer needs as well as the service they want. Contractors want to deal with someone who knows the equipment backwards and forwards. This is what we do,” he said.
In some locations, CPEC will have a full-time employee while customers at smaller locations can have the equipment delivered through CPEC’s service fleet. CPEC also will provide store transfers of equipment, delivery and maintenance. The Home Depot Tool Rental Center will continue to handle the transaction with the resulting revenue from towable equipment rentals shared between The Home Depot and CPEC.
“We will do whatever needs to be done for customers. We went to battle for this with Cat Rental Stores and we won because we are pliable. As a small entity, you have to flexible. We’re looking to earn business through meeting people’s needs. If you need it, we’ll deliver,” Lewis said.
In addition to having equipment based at The Home Depot locations, CPEC will have corporate-owned hubs to house extra equipment and for maintenance, however the company’s mobile services business also will go from The Home Depot location to location as well.