Visions - Summer 2010 - 4

(continued)
“As of December, Sunstate had 31,500 pieces of equipment,” Matsui said,“and the company offers a broad range of construction equipment rentals.The construction and industrial equipment includes backhoes, skid steer loaders, forklifts, earthmoving equipment, material handling equipment, compressors, pumps and generators. Additionally, we have aerial equipment such as scissor lifts, boom lifts and reach forklifts, as well as general tools and light equipment, such as power washers, water pumps, heater and hand tools.” Matsui echoed Hori's indications that the industry has experienced fragmentation. “By executing the right strategies,” Matsui said,“such as organic expansion through branch openings and selective mergers and acquisitions, we believe we can make Sunstate one of the overall leaders in the industry.” Matsui sees a big picture that involves Sunstate helping move forward a global expansion of SC’s equipment rental business by transferring Sunstate’s know-how. In North America, he believes that, in the long term, together with SMS Rents, Sunstate is poised to become a leading rental player, and added that SCOA’s integrated corporate strength will be a factor in that success. “When SCOA utilizes Sunstate in any circumstance that requires rental equipment for new construction, maintenance work, etc., Sunstate will experience additional revenue, while SCOA is assured the best service — on-time delivery, well maintained equipment, which turns into low down time and low overall cost — in the industry.”
For more information, please contact Yuta Matsui at YMatsui@sunstateequip.com.

The construction and industrial equipment includes backhoes, skid steer loaders, forklifts, earthmoving equipment, material handling equipment, compressors, pumps and generators.

new investment in Sunstate, Sumitomo is determined to expand its equipment rental business portfolio and become a leading company in the North American equipment rental market. Ken Hori,Vice President of Business Investment, said the strategic value of this investment has many layers. “Firstly, it will continue to grow in line with growth in the U.S. economy,” he said.“Secondly, it is a less volatile industry than the industry we have been in previously, which was construction equipment retail. Thirdly, if we experience a customer shift more towards rental equipment versus owning equipment, we can take advantage of growth opportunities. Lastly, it is such a fragmented industry that there is lots of room for follow-on mergers and acquisitions.” Hori sees the move as smart in a difficult economic climate.“What we like about the business is all these strategic aspects,” he concluded.“What we do not like is the current state of economy, which is hurting nearly all industries that are strongly related to construction.” Yuta Matsui, Sumitomo Corporation of America’s newly appointed Manager of Corporate Planning and Finance for Sunstate, indicated that historically, the primary focus of Sunstate has been metropolitan areas with high population growth, and the company has the benefit of a large inventory to suit the needs of their customers.
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Visions - Summer 2010

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