CASE STUDY

Leading Agriculture Company Gains Over $400,000 In Savings

Client Undisclosed Added Value A 3-year rate-lock has eliminated the standard 4% - 6% year-over-year rate
increases for new equipment.
Sector Agriculture

Equipment Dilemma Solved With New Savings

A NEED FOR A MORE EFFICIENT EQUIPMENT SOLUTION

The client is a leading commercial-scale seedling company, with

operations in the US, Australia, New Zealand, and Brazil. The
company maintains superior nursery management
practices with advanced tree improvement to produce IMAGE HERE
trait-specific excellent trees. As a result, customers receive higher
returns. The client’s goal is to provide forestry expertise, products,
and customer service to ensure landowners get the most out of
every tree they grow.

Despite the client’s clear goal, the forestry organization has a

unique equipment requirement to overcome. Twice a year for
approximately two months at a time, the client has to ramp up
with as many as 240 rough terrains 40’ - 80’ aerial booms with
ERA negotiated a contract with a national equipment rental
buckets. Employees use the booms to rise to the necessary height
company. The terms include a 3-year rate-lock, minimum service
to pollinate and harvest the seeds from donor trees. Afterward,
commitments, and equipment condition standards that will minimize
the seeds help to grow and harvest seedlings used primarily for
lost productivity as a result of equipment failure. The supplier also
reforestation.
provides on-site spare equipment to reduce any downtime. As a
result, the client’s productivity increased while enjoying a 15%
Since the client’s forest locations are fairly remote and scattered
savings in rates, compared to the incumbent.
throughout the southern states, it is not practical for them to
own, move, and maintain the expensive equipment. Instead, they
rely on equipment rental companies. The seasons provide short
windows of opportunity, which requires the equipment to
arrive on time and in a serviceable condition to operate for long
hours every day for two months.

ERA HELPS NEGOTIATE NEW TERMS PROJECT INFORMATION

ERA worked with the client’s forest managers to determine the SPEND CATEGORY ANNUAL OVERALL
ON
ONTHE
THEROAD
ROADTO
TOBETTER
BETTERPRICING
PRICING
current and future equipment requirements. National rental SAVINGS SAVINGS
companies, including the incumbent, were contacted and
Equipment Rental: $136,192 15%
offered the opportunity to provide a proposal for pricing and,
more importantly, how they would be able to service the multiple
locations with reliable equipment. THREE-YEAR SAVINGS: $408,576

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