United Rentals rolls out lean processes initiative

United Rentals is rolling out a 'lean processes' programme at its North American operation, with 200 stores to be included this year following the success of an 8 branch pilot project last year.

Bill Plummer, United's chief financial officer, speaking at the IPAF Summit conference in Windsor, UK, told delegates that the initiative - which adopts efficiency methods used commonly in the manufacturing sector - could reduce costs by US$100 million within three years.

“We finally worked up the courage to say that this is a major effort”, he said. Mr Plummer added that the project was “going well...resistance [internally] has been nil. People have embraced the notion.”

Following the 200 store target this year United will roll out the programme to the rest of its stores in the coming years.

Mr Plummer also told delegates in Windsor that United Rentals was continually assessing opportunities to expand its business internationally, although was not able to put a time schedule on when it would make a move.

“The only certain commitment is that at some point we will be a global company", he said, "The [question] is how we fit that in with the other objectives we have set.

“We've taken the opportunity to focus our efforts to be well informed before we move. Over time, Latin America will be a focus, Europe will be a focus and Asia will be a focus.”