Hertz 2011 Annual Report Download - page 42

ITEM 1. BUSINESS (Continued)
HERC’s comprehensive line of equipment enables it to supply equipment to a wide variety of customers
from local contractors to large industrial plants. The fact that many larger companies, particularly those
with industrial plant operations, now require single source vendors, not only for equipment rental, but
also for management of their total equipment needs fits well with HERC’s core competencies.
Arrangements with such companies may include maintenance of the tools and equipment they own,
supplies and rental tools for their labor force and custom management reports. HERC supports this
through its dedicated in-plant operations, tool trailers and plant management systems. As of
December 31, 2009, 2010 and 2011, HERC had branches in the following countries:
Saudi
Total U.S. Canada France Spain Italy China Arabia
January 1, 2009 .......................... 345 222 36 80 6 — 1 —
Net increase (decrease) .................. (24) (8) (1) (14) (3) — 2 —
Additions relating to acquisitions ............ 1 — — — 1 — — —
December 31, 2009 ....................... 322 214 35 66 4 — 3 —
Net increase (decrease) .................. (7) (10) 3 (1) — — 1 —
Additions relating to acquisitions ............ 7 6 — — — 1 — —
December 31, 2010 ....................... 322 210 38 65 4 1 4 —
Net increase (decrease) .................. (9) (9) — — (2) — 1 1
Additions relating to acquisitions ............ 4 4 — — — — — —
December 31, 2011 ....................... 317 205 38 65 2 1 5 1
HERC’s rental locations generally are situated in industrial or commercial zones. A growing number of
locations have highway or major thoroughfare visibility. The typical location includes a customer service
center, an equipment service area and storage facilities for equipment. The branches are built or
conform to the specifications of the HERC prototype branch, which stresses efficiency, safety and
environmental compliance. Most branches have stand-alone maintenance and fueling facilities and
showrooms.
HERC’s broad equipment line in the United States and Canada includes more equipment with an
acquisition cost of under $10,000 per unit, ranging from air compressors and generators to small tools
and accessories, in order to supply customers who are local contractors with a greater proportion of
their overall equipment rental needs. As of December 31, 2011, these activities, referred to as ‘‘general
rental activities,’’ were conducted at approximately 30% of HERC’s U.S. and Canadian rental locations.
Before it begins to conduct general rental activities at a location, HERC typically renovates the location to
make it more appealing to walk-in customers and adds staff and equipment in anticipation of
subsequent demand.
In early 2010, Hertz launched Hertz Entertainment Services, a division which provides single-source car
and equipment rental solutions to the entertainment and special events industries. Hertz Entertainment
Services provides customized vehicle and equipment rental solutions to movie, film and television
productions, live sports and entertainment events, and all-occasion special events, such as weddings,
conventions, and fairs. Hertz Entertainment Services are tailored to fit the needs of large and small
productions alike with competitive pricing and customized, monthly billing. Hertz delivers vehicles and
equipment to production locations and a dedicated staff is available 24/7 to address specific client
needs. Productions can also rent equipment for use at special events such as lighting, generators and
other machinery.
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