Posted by Matt Register

Jennifer Green & David Richardson with A.C.E. talk about the compressor service and rental business.

Please excuse any typos in this hasty transcript.

Matt Register: Hey. Welcome back to the show. Texas Business Radio. is the website. 844-814-8144 our 24 hour call in line. 24 hours, that means call in now, call in 3:00 in the morning I really don’t care. We’re gonna get the experts on here to get those questions answered.

We are down here at the 46th Turbo Machinery, and 33rd Pump Symposium down at the George R. Brown Convention Center in Houston, Texas talking about rotating equipment. I’m your host Matt Register. Jay Curry had something better to do this weekend. We’ll catch him next weekend.

But, in the meantime we’re talking about air compressors, and we have the air compressor experts in here. David Richardson, and Jennifer Green. Welcome to the show.

Jennifer Green: Thank you.

David Richardson: Thank you.

Matt Register: Talk to me about the air compressor experts. What do you do, who do you do it too?

Jennifer Green: Well, we are actually an after market company. We service all centrifugal air compressors. We do service parts, repairs.

David Richardson: Maintenance.

Jennifer Green: Maintenance.

David Richardson: When they have a compressor go down, they’ll contact us. Usually it’s an emergency, sometimes it’s planned.

Matt Register: Well, lets back up just a sec. So we’re talking about great big air compressors. We’re talking about plants that power, you know, big manufacturing plants, automotive plants those kind of big air compressors, right?

Jennifer Green: Yes.

David Richardson: Minimum size, horsepower wise, we probably work on would be 300 horsepower.

Matt Register: Okay. So big stuff, not something that people are gonna have in their garage. But, big industrial air compressors.

David Richardson: Not even in the gas station.

Matt Register: So, you guys repair them.

David Richardson: Yes.

Matt Register: You guys refurbish and sell reconditioned ones?

David Richardson: Correct.

Matt Register: What else do you do to them? You rent them?

David Richardson: We rent-

Jennifer Green: We do rentals. We also provide new parts as well.

Matt Register: Okay. So, how is it going, right? How is your year going?

David Richardson: It’s going really good. It’s going really good. Sales did you ask?

Matt Register: Yeah. Sales wise.

David Richardson: Sales have really increased this year. We’ve had a really up-tick.

Matt Register: Why? What is it about this year that is causing your sales to increase?

David Richardson: I’d say it’s the personnel that we have on board.

Matt Register: Okay. So not economic forces, we’re talking about deliberate acts within your company that you guys have done to try to increase sales, correct?

David Richardson: Contacts that we’ve made. Friendships that we’ve made with customers over the years.

Matt Register: So what are you doing differently now that you weren’t doing in years past to cause that increase?

David Richardson: We’ve got a lot more experience now than what we had before. More experienced people, they’ve worked on them for many years in the after market and that come from the OEM as well.

Matt Register: Okay.

David Richardson: They’re working with us on the engineering side, and on the service side as well.

Matt Register: Okay. Good. So who is the actually user? So, the maintenance manager of the plant are the guys that are gonna give you a call, correct?

Jennifer Green: Most often, yeah.

Matt Register: What part of the country do you guys operate in? You all over the place, or do you … ‘Cause you guys are out of Kentucky, correct?

Jennifer Green: Yes. We are located out of Kentucky. We actually service globally. We can send service techs out, we can sent parts, whatever the customer needs. All over the US, I mean, basically anywhere.

Matt Register: So, we were talking quickly during the break, I know part of the … One component of your business is that recurring maintenance contract type model. The rest of it is when customers actually go down. They need it quick, they need you there yesterday right?

Jennifer Green: Yes.

David Richardson: Correct.

Matt Register: Talk to me about how much of your business is that recurring maintenance, you know, planned maintenance and how much of it is that emergency repair?

David Richardson: Oh, I would say 70% of it may be emergency. But it was originally planned but it turns in to an emergency.

Matt Register: Okay.

David Richardson: Because they can’t shut it down, or whatever reasons. Then it shuts itself down. Then we have a service team of about 18 people that are constantly going all over the United States or out of the country to wherever the job site is.

Matt Register: Sure.

David Richardson: To get the compressor tore down, and the parts back, us refurbish them. But the parts back in the machine, start the machine up and get them warrantied.

Matt Register: Well, ’cause when these guys don’t have air they have a much bigger problem than not having air, right? They’re losing a significant amount of money by the second.

David Richardson: They’re shutting down, they’re shut down. Shut production down.

Matt Register: Yeah. That’s no good. Well good.

Jennifer Green: And in that situation we also provide rentals. So, if they need us we can have a rental on site within 24 hours or less.

Matt Register: Oh, okay. Got it. How big of a … Relative to your business what kind of percentages is the rental side of it? Is it significant, or is that just kind of a-

Jennifer Green: We see it creeping up. It’s becoming more often. I mean, that’s something that we’ve recently to into within the past year two years I would say.

David Richardson: Two years.

Matt Register: Okay. Wonderful.

Jennifer Green: So you’re seeing that more and more now.

Matt Register: Okay. Well, good. Well guys we’re down here at the 46th Turbo Machinery, and 33rd Pump Symposium at the George R. Brown Convention Center. We’re talking to David Richardson, and Jennifer Green with The Air Compressor Experts. Dave and Jennifer, thank you very much for joining us.

Jennifer Green: Thanks for having us.

David Richardson: Thank you.

Matt Register: Yeah. Guys, we unfortunately, do have to go pay some of our own bills. So, we’re gonna take a quick break. We’ll be back right after this. Don’t go anywhere.

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About the Author
Matt Register

Matt Register

In addition to hosting "Texas Business Radio," Matt is an investment banker and serial entrepreneur from Montgomery, Texas. He is the owner of RREA Media and Register Real Estate Advisors and a Managing Director and Principal at Corporate Finance Associates. He has a BS from the United States Military Academy at West Point and an MBA from Rice University in Houston. You can read more about Matt HERE.

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