UC+D: Why did RDO move into the Utah market and what business moves has the firm made recently in addition to the Honnen acquisition?
Anderson:
The opportunity to expand into Utah—along with eastern Idaho and Wyoming—presented itself at the right time, and we were thrilled to be able to make it work and add eight stores in markets adjacent to ones we have been working in for many years. RDO now operates three construction equipment stores in Utah. After last month’s acquisition of Rocky Mountain Transit and Laser, we've expanded our construction technology services. As a close partner with Topcon, we're eager to bring time-saving technology solutions to Utah contractors building on the success we've experienced in states across RDO's footprint.
UC+D: What have you enjoyed about the Utah market so far?
Anderson: For many years we have grown our business, particularly the construction side, within the confines of our existing geographic territory. RDO leaders and team members are excited for this opportunity to expand and serve customers working and living in Utah. The Utah team welcomed us in, and we are certainly eager to be a part of this diverse and growing market. Utah’s large aggregate, mineral, and roadbuilding sectors, among many others, fit perfectly with RDO’s strong partnership with Wirtgen equipment and technology, not to mention John Deere’s construction expertise.
UC+D: What areas of the business need improvement?
Anderson:
Our top priority early on has been expanding our service capabilities by recruiting and investing in more service technicians and adding more field service vehicles. Beyond that, we’re also working to increase our inventory, including parts and rental machines, while continuing to develop our entire team in the region and integrate RDO’s broader best practices and resources. RDO team members can connect to the company's vast network, so different communities can benefit from shared knowledge, strong manufacturer partnerships, and 24/7 remote support.
UC+D: What construction sectors are good right now?
Anderson:
Across RDO’s footprint, the construction market is strong. Our customers tell us they have work, and equipment or parts availability has vastly improved. When we look at Utah’s construction market, we see a lot of promising activity in sectors like aggregates, housing, infrastructure, and roadbuilding. It’s really exciting for our customers and our team members.
UC+D: What are you hearing from your clients about the state of the industry? Everyone seems busy despite various headwinds (interest rates, labor, competitive environment, material fluctuations, etc.).
Anderson:
Utah contractors are optimistic, despite very real headwinds. Most are dealing with labor shortages and higher-than-expected interest rates. This is why we’ve focused our priorities on investing in our service teams, along with our rental and technology teams. We’re here to be a true partner to our customers, so our goal is to provide the resources our customers need to work as efficiently and effectively as possible, and that’s what we’re doing with these types of investments.
UC+D: How is equipment availability right now? What items are hard to get or have long lead times?
Anderson:
Equipment inventories have recovered from recent years’ supply shortages. The challenges dealers across the industry faced coming out of the pandemic are behind us, like being able to find and provide the machines customers needed in a reasonable amount of time. RDO has also been able to maintain a robust parts inventory. Pair all that with the variety of aftermarket service package options we offer, and we feel really good about where we are at this point.
UC+D: What are RDO's goals in terms of bottom-line sales and profitability?
Anderson:
RDO’s goal is always to grow and build, whether it’s team members' abilities, technology expertise,
service experiences, or the overall business. Ultimately, we want to expand our presence. We want to invest in our team members and resources—focusing heavily on the service side of our business to begin—so we can provide the world-class level of service our customers depend on.