jdc cOMPANY UPDATE
As move into Q2, I have had a chance to ask some of our leaders for their input about where our business is going in 2023. After discussing this with them, it is clear to see that we have a lot of opportunities this year and seeing positive change in the different parts of our company. I want you to know that these opportunities wouldn’t be possible without the work you put in. I look forward to the actions that JDC can take as a team to expand our business.
– Steve Shafer
Overall, we have seen consistent year-over-year growth in our Electric Utility rental fleet, equipment sales, and parts & service.
- Versalift is starting to loosen up more production on high-demand products due to chassis, body, and major components arriving. This has allowed us to expand our customer base in the Midwest, the Northeast, and Canada
- Our Skylift success continues to grow with the increased and consistent production we receive on a monthly basis. The Super 6000 product alone continues to come in and go out for long-term rent, with the majority being past 1 year old rentals already. Long-term rentals is good since a lot of core business generally is only 3 month.
- JDC has been making major wins in the transmission market with Elliott’s unique & labor-saving product the E160. Not only is our rental fleet in high demand but pre-order sales are coming in to secure our future production.
- Though our lots are full with TSE, Brooks Brothers, & Reelstrong trailer products, we have continued monthly to rent long-term and sell trailers this quarter and JDC is positioned to supply the EU market as we enter the work season.
JDC continues to win over historically competitor-loyal customers and current customers continue to make us their preferred #1 choice, due to the service, support, & overall experience we provide as an organization. With our continued focus on improvement & integration as an overall infrastructure solutions provider, we have a strong & successful future ahead of all of us.
The Midwest saw a 13% growth in Q1 2023 compared to last years sales. With the rental market becoming more competitive, a shifting in sales activities in Q2 should help JDC stand out to commercial businesses.
- The Midwest had a slow start to fleet equipment sales. Improved focus on selling via the target list as well as leveraging recently available Q4 build slots for Combos & HXX.
- Blitzing construction companies to improve HXX rental utilization and sales. Demand for long-term Paradigm rentals is on the rise via a small group of customers. Lack of CDL operators is driving the demand for these products. Interest in hydro activity is on the rise and there’s competition to capture rentals and equipment sales. Many excavating and/or construction companies are looking at options beyond just subbing out the hydro work. Also, telecom companies that we are targeting for aerial opportunities are looking at the possibility to expand hydro capabilities.
- Stanley trailer tour targeted to kick off by late April or early May. Regional trade show exhibits helped drive some of the recent Stanley sales, as well as Lift and other core product categories. Nozzle sales are strong and several sales blitzes with Enz were completed or in the works. Parts sales in the region increased compared to the same period last year.
The Northeast has seen growth in several markets and have been able to hold strong with others based on the JDC name. We have worked to ask a few more probing questions to customers about what/where they are buying from to see how we can leverage our relationships to give us an opportunity to be thought of as more than just selling sewer products. We worked with Mick, Ken, and IT to make some EU parts Line Cards that we can give to our muni and contractor customers. We also worked with Enz to make up some Nozzle kits that we can push to our customers.
- The rental market continues to be hot in the Northeast specifically the Hydro market. Most contractors are looking for trucks with air/water capabilities the most popular to this point are the full-size or the Non-CDL trucks. People will take a Prodigy if that is all we have but it would not be a long-term rental.
- The demand for combo’s is there, but as of end of Q1 we are getting more calls for Hydro’s than combo’s although we do have all of our combo’s out on rent right now.
- The EU market continues to grow as equipment rolls in. The EU customers in the Northeast are also starting to see the value in renting a Hydro as opposed to subbing out to a Badger or other which helps us continue to develop these relationships and become more of a partner than a vendor.
- The muni market is still hot and we are consistently quoting combos, some bucket trucks, and we have even been able to start the conversation about muni’s purchasing a hydro. A very popular truck that we are quoting to our muni’s right now is the Impact.
- The parts/service business has been steady, on the parts side we have made a conscious effort to not pigeon hole ourselves to just talking about a nozzle, or a tiger tail with our customers.
- The service business has been growing as well, we have some larger work that we quoted in Q1 and hopefully we will receive PO’s in Q2 and be able to get those in the door.
We are experiencing unprecedented inspection market demand across our territories due to JDC technology and durability advantages. We are seeing these technology specification requirements at a much greater frequency, including:
Western region we see PANORAMO Ultra HD (4K) requirements becoming the standard across all major markets as well as emphasis on HD quality pan and tilt inspections.
In our midwest region the full HD (1080) pan & tilt video is quickly becoming the standard across this market. When correctly articulated this value proposition is providing a fantastic strategic advantage.
We are also experiencing a drastic increase in demand for both laser profiling and reinstatement cutting equipment in both the contractor and municipal market sectors. It is important to understand these technologies, value proposition and the advantages they provide for our partners.
JDC equipment/chassis availability allows us to meet the strong market demand in 2023. JDC chassis and buildouts are in stock and ready for order in several formats including E series, F series and Transit units (pre buildout). We also have Several Rapidview build units ready for equipment installation.
Utility construction locating and inspection market continues consistent growth and our product lines prove to be the most efficient on the market
A JDC nationwide service offering is forthcoming as our strategic customers and large contractors respond positively to increased service and support coverage. This strategy includes Midwest based support and coordination effort to balance demand and utilize our large service footprint and knowledge base most efficiently with better branch to branch utilization. This Strategy will ensure our service offering is best in class and uniquely structured for our growing inspection market.
Our inspection parts and accessories advantage enabled us to be a full solution inspection equipment provider ensuring our partners receive the most robust packages possible. Push camera, locators and safety equipment like communication headsets and cable protection rollers have bolstered customer satisfaction.
– Service backlog continues to be robust. This is a good situation as it speaks well to our ability to drive all important service revenue. Contrary to this the backlog also represents a tight rope that we walk between increased revenue and continued customer satisfaction. Warmer weather in the Mid-West speaks well for this to continue well into the late spring and early summer due to seasonality of demand. Additionally, inspection equipment service has shown a sharp uptick recently.
– With the effort made on the front end of the rental business which should notice the efficiency of the initial rental process service has responded with a new 72 hour turn around of the 360 degree inspection and quote process on rental returns. The process is set to increase rental availability as an increase in rental demand is anticipated over the next several months. The impact of inflation on smaller operators may move large capital investments into more manageable rental expenditures. However, this opinion is speculative.
– A large paint order from GFL is in the concept validation process with the first truck moving into the paint process in the first or second week in April. Success here will mean a steady stream of tricks moving through the previously anemic pInt boot helping return this key asset to profitability.
– Rate increases at some large municipalities have been submitted. Moving from old multi year rates to our current labor rate should help return these key accounts to a more favorable margin position. City of Cleveland, Toledo, Columbus, and the North east Ohio Sewer authority all in process.
– Labor market appears to continue to be less than favorable wit positions remaining open and not filled for long periods of time. Effort made on the recruiting side is helping. However, a variable approach, one using internal recruiting and targeted outside recruiting, may be needed