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In 1976, Mike Watts heard the following words from his former employer, “The competition is getting too great, the margins are gone, and the rental business will never be the same.” Watts disagreed. He believed that if you were willing to work hard and smart, you could make a living in the rental business. He took control of his destiny and struck out on his own. He spent six months planning a way to acquire an interest in Beldon Rentals, a single-store Phoenix operation. Faced with no capital, Mike structured an agreement that gave him the opportunity to become a partner in the business while allowing the sellers to retire and remain as partners. The plan was to buy the sellers out as soon as the banks would support him in his endeavor. Sunstate Equipment Co. was born on January 1, 1977. 
 
The business catered to homeowners, light contractors, and landscapers. Most rentals were for lawn mowers, tillers, dollies, and scaffolding. Borrowing $100,000 from the bank, Watts invested in construction equipment (which was his background) and began catering to the professional contractor, eventually closing the door to homeowner rentals. It was at this time that he changed the name to Sunstate Equipment.

Cash flow was critically important and closing on weekends to focus on the professional contractor was a gutsy move that paid off. Within 18 months, he was able to once again approach the bank and borrow enough money to buy out the other partners.

Mike Watts was always focused on Sunstate improving every aspect of its service and being a better company, not necessarily a bigger one. The company did not try to be “all things to all customers” and placed the highest level of importance on people, starting with its own employees and then treating vendors as partners to the business. Relationships with customers became easier after that since Sunstate made it convenient for them to enjoy dependable and reliable service.

After three decades, Sunstate has grown to become the largest independent rental company and operates in eight states focused in the Southwestern US.

We immediately concentrated on the contractor market to take advantage of the Phoenix construction boom of the late 1970s and early 1980s. In 1989, Sunstate took its first step outside Arizona, expanding into the Las Vegas market where growth was strong. Many industry leaders questioned this move. Many also questioned the company’s ability on its claim to deliver equipment within 90 minutes. Sunstate proved them wrong and set a benchmark for the industry. Today, the Las Vegas market is one of the strongest in the company.


Sunstate’s standard of excellent service did not happen overnight. We believe the common denominator in superior service is proper training. To accomplish this feat, Sunstate developed the Management Development Program (MDP) to train all branch and regional managers. This class is conducted in a state-of-the-art training facility complete with its own “Sunstate Simulator.” The Simulator is a mock rental store counter complete with phones and computers to help replicate everyday occurrences in the field. The class focuses on Sunstate’s philosophies, objectives, procedures, and methodology along with recreating real-life scenarios through hands-on training. The program instills confidence and knowledge in new and experienced managers and helps perpetuate the “Sunstate Way.”

The “Sunstate Way” means many things, but one facet is immediate and urgent service, hence Sunstate’s guaranteed on-time delivery. In order to achieve this goal, it was necessary to develop a true central dispatching system. The dispatching “pits” in metro areas resemble the control booths of air traffic control towers. Equipment is distributed and picked up from various locations as directed by the dispatchers. This hectic process results in immediate delivery and could not happen unless all Sunstate locations worked as a team. Sunstate was the first in the industry to implement central dispatch, providing better service to its customers.


We believe in TEAMWORK; it is one of Sunstate’s Core Values. Branches work together, not in competition. To accomplish this level of cooperation, good communication is a must. A company newsletter is distributed bi-weekly to all employees with their paycheck. This tool is viewed as a communication pipeline to get important information to all employees.


However, communication is not a one-way street. We believe employees should be heard, so we implemented a suggestion program which gives each employee the opportunity to voice their ideas. Suggestions are submitted by employees and then reviewed by Sunstate’s Training Department. The CEO is the final person to say no before a suggestion is denied. Watts frequently challenges the Training Department to consider suggestions for possible implementation. If the idea is implemented, the employee is awarded a bonus and receives the satisfaction of seeing his idea at work. This effort to involve the experience and intelligence of its people has garnered national attention for Sunstate’s Suggestion Program. Since its inception, more than 2900 employee suggestions have been implemented. Tools such as these allow Sunstate to live up to the CHALLENGE.

Since the beginnings of the company, we have cultivated a diverse, skilled management team. Mike Watts is a strong believer in his employees and proves this with a promote-from-within policy. Although Sunstate has an established method of managing the company, it is never viewed as the “right” way or the “only” way to achieve the goal. In fact, every employee is encouraged to think like an entrepreneur and take risks. This philosophy of EMPOWERMENT brings experience, benefiting both employees and customers. There are many success stories within Sunstate where individuals, many with little or no formal education, have started on the washrack (washing equipment as it comes in from the field) and worked their way up to key management positions. The company’s first two employees are still with the business today. Sunstate’s support for its PEOPLE has resulted in a very low turnover rate, and in fact, many employees who once left the company have returned.

Many of the Sunstate management team came from past business relationships, some from the rental industry and some from the general business community. Although the team is comprised of individuals with diverse backgrounds, from mechanical and operations to financial, the one common denominator is INTEGRITY. This combination creates a system of checks and balances that complement each other well and is one of the factors in Sunstate’s success.

We have created a family atmosphere at Sunstate where everyone is still learning and growing. Over and over, Sunstate’s people cite their Sunstate family as an important part of their job satisfaction. We rely on each other and we have FUN together! It is impressive to travel to different Sunstate locations and see this same family atmosphere throughout our stores.

Watts and Sunstate are strong supporters of the communities in which they operate. Sunstate believes in giving back to the community in all its locations.

With great entrepreneurial spirit, Mike Watts has created a vital, successful organization – a place where people with that same spirit can develop themselves and their careers. Sunstate is proud of its employees; they are truly Rental People You Can Depend On.

Want to learn more about working at Sunstate? Visit our Careers page.

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