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After 55 years Hirepool has diversified its business model and now delivers a total-rental solution across the country.
“It is no secret that the last two years in particular have been tough for those in the construction sector, whether as contractors, suppliers or service providers,” he says. “In our case, we changed the business model, diversified our product range and focused more attention on becoming the total solution provider.” He says the results speak for themselves, as all Hirepool branches and those of the other business units – Port-a-loo, Henderson rentals, Rhodes Rental, Castles Marquee & Events, Barricading Solutions, Hirepool Access and Hirepool Energy – have remained intact. Mark points to the rapid changes in business today, which are a far cry from the settled and secure environment that existed when pioneer owners Peter Brookfield and Eric Jarvie set up Modern Industrial Methods, back in June 1955. The forerunner to Hirepool specialised in selling air tools from a site on Great South Road in Penrose, Auckland, within reach of the business’ flagship facility. A year later the stock was converted into a rental fleet and the name changed to Hire Pool. In 1971, when the owners sold the business to Fletches, it had grown to nine branches across the North Island. There was little new development, and when Tenby Powell, the former CEO of Hirepool and NZ Rental Group, formed a consortium to acquire Hirepool from Owens Group in 2003, it comprised just 14 branches, with only one in the South island.
At the start of 2005 Hirepool signed on as the principal sponsor of the NZCF, which Mark Powell recalls “made both commercial and strategic sense at the time”. “And it still does,” he says, “which is why we have continued with our support of the NZCF and as sponsor of the annual Hirepool Construction Awards. “It was never about buying loyalty, but about affirming our commitment in a meaningful way and delivering our ‘customer intimate’ platform to those we see as the key construction and contracting players in the industry. We are delighted with the relationships we have established with NZCF members and that we are able to support the federation in such a tangible way.” The next phase of Hirepool’s development was focused on acquiring complementary businesses and developing specialised product offerings that could provide a growing national customer base with a broader product range. It began with the purchase of Port-a-loo Auckland and Wellington in 2006. In July that year Hirepool was sold to Next Capital, one of Australia’s leading private equity firms, which supported the diversification strategy. By the end of 2008, Henderson Rentals, Barricading Solutions, Rhodes Rental and Castles Marquee & Events had joined the NZ Rental Group stable, while Hirepool Energy, a specialised generation and pumping division, was also established – all providing Hirepool the breadth of rental products, backed by years of experience, to develop new markets and extend existing ones.
He gives some examples: “For us, film and TV production started with Henderson Rental’s supplying purpose-built trucks, vans and rigs in West Auckland, but has expanded to include access equipment, generators, port-a-loos, marquees, barrier systems and general hire products at a number of locations around the country. “Marquees, generators, port-a-loos, access equipment, barrier protection and general hire equipment for all manner of events and exhibitions including, street motor racing, and at established sports venues for cricket and rugby tests, concerts and community events. And that’s only the start of it. “Another area where Hirepool has gained a strong foothold is providing on-site equipment asset management at ports, refineries, forestry plants and power generation sites and, more recently, specialist equipment on a regular basis for major corporations who can see the benefit of renting equipment instead of having it tied up as a capital cost.”
Air New Zealand had previously owned their own access fleet nationally, with short-term hire catered for when required. But it recognised having all their EWP’s managed, externally certified and fully maintained was the way forward. “We see it as a great challenge,” Mark says, “but at the same time an exciting opportunity to provide our ‘customer intimate’ capability to the country’s national carrier.”
Contractor Vol.34 No.7 August 2010 |
This year marks a significant milestone for Hirepool, the cornerstone business of the NZ Rental Group and the principal partner of the New Zealand Contractors’ Federation – it celebrates 55 years in business. According to CEO Mark Powell, the five years since the company marked its 50th anniversary have been the true measure of Hirepool’s continued success as New Zealand’s hire equipment leader.
Tenby pursued an aggressive strategic growth strategy to establish a national footprint within two years. That was achieved six months ahead of schedule and by the time of the Hirepool’s 50th Birthday Dinner in April 2005, its nationwide network numbered 43 business units.
“We see that as our competitive advantage and something all branches are on the lookout to promote,” says Mark. “And through these difficult few years our ability to offer the complete hire rental package has proved a saviour.”
Mark says Hirepool has just confirmed an access equipment supply arrangement with Air New Zealand to provide elevated work platforms to manage aircraft maintenance capability on a national basis. It is a seven-year contract where Hirepool will supply, manage and maintain a range of scissor and boomlifts on an ‘as required’ basis.