Duke Diversity
The Duke Company strives to be a one-stop shop for contractors
by Clair Urbain
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| The Duke Company's main facility in Rochester, New York. |
Customers walking into The Duke Company’s rental show room are greeted with a warm hello and the smell of fresh popcorn. If you show up on the right day, there are also buffalo wings or other treats for customers. If you need to wait for something, the flat-screen TV will allow you to get caught up on the news.
“We treat our customers the way we want to be treated,” says David Terry, president of The Duke Company. The business started in 2003 as a Volvo Rents franchise until 2011, when the company rebranded itself as The Duke Company.
“It’s named after my father, Thomas ‘Duke’ Terry, who was instrumental in starting the company and establishing the customer-focused culture that has made us successful,” says Terry.
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| “We treat our customers the way we want to be treated,” says David Terry, president of The Duke Company. | Our best assets are our employees. Many have been with the company for many years and have more than 20 years of industry experience,” says Kevin Holahan, vice president at The Duke Company. |
The Rochester, New York-based rental center serves a roughly 80-mile radius; it added a location in Ithaca, which is about 100 miles southeast of Rochester, in 2008. Most recently, the company purchased the assets of Southern Tier Area Rentals in Dansville, New York, which had a strong customer following for smaller types of equipment, and worked with Duke to supply larger equipment and building materials to customers. They are in the process of rebranding it as a branch of The Duke Company.
Traditional beginnings
In 2006, the organization expanded its product offering with building products and construction materials that complemented the existing selection of rental equipment. “We specialize in supplying concrete accessories, masonry accessories, building structure moisture and thermal protection, along with geotextiles and erosion control products,” says Kevin Holahan, Duke vice president. “We want to be a one-stop shop for general contractors.”
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While it first offered only rental construction equipment, Duke has deliberately expanded its product line into high-quality tools and building supplies. |
They are very deliberate in deciding which product lines to take on. They keep a close watch on construction and business trends to help guide their business, which has grown steadily year after year, reports Terry. “For eight of the last 10 years, we have been included on the list of the Rochester Top 100 private companies that is compiled by the Rochester Chamber of Commerce,” Terry says.
Capitalize on the weather
It’s no secret that Rochester gets more than its fair share of snow, thanks to lake-effect precipitation from Lake Ontario and Lake Erie. While the wintry weather puts a damper on construction sales, Duke leadership saw it as a sales opportunity for snow -and ice-removal products.
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| Bulk and bagged salt and de-icing supplies as well as the equipment to spread them augment The Duke Company’s sales during the winter months. |
“Over the years, we’ve expanded our product offering to include a wide variety of heaters, bulk and bagged de-icing products, snowplow blades and shoes and spreader chain. It went a long way toward creating revenue year-round,” Holahan says. It’s a good match with contractors, many of whom shift their focus to snow removal in the winter months.
In 2010, The Duke Company further expanded its product offering to include concrete forming systems, another area that has proven popular with contractors and has been a great addition to the existing lines of business.
“We started offering Doka forming equipment recently. It offers a simpler clamping system than other types of forms and can significantly reduce labor costs and time to complete the project. The product line is new to our market and we’ve found that once a contractor uses the system, they adapt quickly and typically want to use the Doka system on future projects. The key is getting the customer to try it, and once they do, they are sold,” Terry says.
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| Duke employees are constantly looking at upcoming projects so the company can adjust its equipment fleet for projects in the pipeline. This Spider Platform basket lift was recently added to the fleet because it can fit through narrow doors for inside work. |
Concrete stamping equipment as well as concrete etching and treatment products have found a niche with the Duke customer base. Similarly, changing New York DOT requirements have created a demand for a variety of geotextiles for erosion control. “Our staff members look at upcoming jobs and do take-offs so we are prepared to provide the tools and supplies the contractors on those projects will need,” Holahan says.
The company focuses on stocking higher-quality products for its lines. “While we strive to carry the best product lines available, our people are what sets us apart from our competitors. Our best assets are our employees. Many have been with the company for many years and have more than 20 years of industry
experience,” says Holahan.
To better serve customers, Duke has built up its delivery fleet. “We have invested heavily in our delivery vehicles which include tractors, trailers and flatbed trucks, some equipped with forklifts, so we can more efficiently load materials and make deliveries,” says Holahan. “The cost of transportation is going up, but we take pride in the equipment we rent and the products we sell, and want our delivery vehicles to reflect that.”
Customer service
Terry says customer service sets The Duke Company apart from the dozen rental competitors in the area. “We have a knowledgeable, experienced staff. Because of the salt operation, we don’t have a slow period, so we keep employees busy year-round. Our workforce is stable and very experienced. We have the reputation of being the friendliest rental house in the Rochester area,” says Terry.
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| The Duke Company stocks a variety of equipment that ranges from aerial lifts to road work signs. |
“It doesn’t matter if you are the largest contractor in the area or a homeowner, the level of customer service is the same. We have a reputation for going above and beyond for our customers. We offer after-hours service and our salt load-out facility is open from 3 a.m. to 5 p.m. five days a week and 24 hours during weather events,” Terry adds.
At its open houses and other customer events, The Duke Company typically invites charities to be part of the activities, allowing them to gain awareness and build support with customers.
“Our customer events are like no other in the area. We are well-known for serving quality steaks and great side dishes at these events where we commonly serve as many as 1,000 contractors. Customers greatly appreciate it,” says Holahan.
Changing equipment inventory
Anticipating rental needs is a big job, and Steve Chait, Duke’s fleet manager, steps up to the challenge. He buys and sells equipment around the world to be ready for customer needs.
“Our rental fleet is a mix of new and used equipment that I’ve located through manufacturers and brokers. It’s challenging to find quality equipment, but every piece of used equipment has a story that can indicate whether equipment is a good value,” he says.
Chait relies heavily on serial-number research to unearth a piece of equipment’s history.
“Has it been recently sold at auction? If so, it’s likely someone is trying to flip it. Was it a repo? Chances are good that its maintenance and condition aren’t good. How many hours does it have? For example, a rough-terrain lift truck with 4,000 hours on it will likely need a major overhaul,” Chait says.
Chait also uses Machinery Traders’ AuctionTime.com site to locate possible fleet replacements. “Unlike other auction sites, it allows you to call the equipment owner and learn more about the machine. Finding good used equipment takes a ‘Columbo’ approach. You must ask 100 questions to get a good idea of the machine’s condition,” he says.
Rental rates remain steady
The Duke Company faces the same problem as other rental centers: very competitive rental rates while equipment costs continue to climb. The company continues to focus on improving its rental fleet mix and maximizing fleet utilization to address the challenge of rising equipment costs.
“Tier 4 Final-compliant engines have significantly increased the cost of new equipment such as excavators, generators and air compressors,” says Terry, “Yet the rental rate stays the same and they also require more maintenance.”
Future plans
Not resting on its laurels, The Duke Company has plans to continue building its brand and reach. “Our plans include continuing to better service our existing customers and to acquire new customers in our current markets. We are also looking to expand into new markets and add locations,” says Holahan.
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