We are honored to have our Pacific Rim Capital, Inc. CEO and owner Dave Mirsky featured in this month’s Equipment and Leasing Finance Magazine. Check out the link below to read more about how Dave and the rest of the PRC Team are raising up the next generation of leasing leaders.
Having grown to be a major player in their industry, Pacific Rim Capital is hitting exciting historical moments. They make sure to work in the sole interest of their clients, giving them control of their outlook. CEO David Mirsky joins us to share more of their achievements and their inspiration.
IRVINE, Calif., Jan. 22, 2019 /PRNewswire/ — Pacific Rim Capital, Inc. (“PRC”) is pleased to announce that it has received a significant investment from Fuyo General Lease Co, Ltd. (“FGL”). FGL, a leading Japanese lessor, has made this investment as part of a strategy of promoting advancement into new areas through investment and collaboration with non-Japanese leasing companies. PRC is a leading independent leasing company that primarily conducts operating leases of material handling equipment in the USA, Mexico and Canada.
Significantly, through the National Minority Supplier Development Council (“NMSDC”), PRC will maintain its Minority Business Enterprise (“MBE”) certification through the NMSDC’s Growth Initiative Program as a minority-controlled company. The company will continue to be run and controlled by its current management team.
David Mirsky, CEO, said, “We are very pleased to have finalized this investment with Fuyo General Lease, Ltd. We have had a longstanding and successful relationship with FGL, and we expect that this new collaboration will enable PRC to expand into new geographical markets, access more clients, and increase our financial capabilities. We look forward to continuing to provide PRC’s well-known award-winning service to our large multi-national client base all over the world. This partnership fulfills our goals of enabling PRC to increase its originations and to be able to operate long after the founding generation retires.”
Marc Mills, President, said, “Our new partnership with Fuyo will help PRC to continue to aggressively expand its customer base and to build on our successful relationships. I would like to thank the NMSDC and its member corporations for providing minority business enterprises with potential for substantial growth, the opportunity to access equity capital, while retaining management and control, as they expand both nationally and globally.”
Honda’s Top Indirect Supplier Honor Awarded to Diverse Supplier
Honda understands that to be successful, it must rely heavily on its thousands of suppliers throughout North America and the world. In an effort to recognize those suppliers who are committed to exceeding expectations, Honda of America Mfg. hosts the Annual Indirect Procurement Supplier Awards.
This event ceremony shines a light on the important role of these strategic partners. This year, Pacific Rim Capital Inc. of Irvine, Calif. earned the Supplier of the Year honor.
Pacific Rim supports Honda’s daily operations with comprehensive powered industrial vehicle (“PIV”) fleet management. PIV, such as forklifts and material handlers, must be maintained just as we conduct regular maintenance on production equipment like presses and robots. With PIV, the equipment lifecycle is much shorter, and therefore, vehicles are often leased instead of purchased. Departments using these vehicles must periodically rotate the equipment with new units, ensure the maintenance and upkeep, as well as monitor the equipment’s hours to optimize usage.
Considering a single plant can have more than 100 vehicles in operation, managing the fleet can be quite a burden. From the start, Pacific Rim brought solutions to make the equipment acquisition, delivery, and maintenance management more efficient for Honda departments.
One innovative idea led by the supplier was an online signature process to decrease the lease contract processing time. Departments were spending too much time chasing down approvers to sign the lease paperwork, causing tight equipment deliveries and unnecessary follow up. The online system streamlined the process while maintaining the necessary approvals to ensure equipment availability and timely delivery to the plants. In addition, Pacific Rim’s online asset management and report distribution tools have provided Honda with a way to access comprehensive lease information from beginning to end. This tool allows Honda to make informed decisions to extend the life and quality of our powered industrial vehicles, which in turn optimizes our operating costs.
“Although a new supplier to Honda’s manufacturing operations, Pacific Rim represented the best of the best this year,” according to Monica Oliverio, North American Indirect Procurement Department Manager, who also said that the supplier outperformed all of the key business characteristics that encompass Quality, Cost, Delivery (QCD), as well as Safety and Service.
“It’s exciting to see a new business partner bring new tools and processes that can immediately help our associates save time and be more effective in their jobs,” she added. “It’s equally exciting that Pacific Rim Capital is a minority-owned company.”
After starting as an Information Technology lessor, Pacific Rim began to diversify their offerings into PIV equipment. Through their commitment to continuously develop and offer innovative solutions to their customers, Pacific Rim has grown to be a full service company capable of effectively supporting large and complex operations.
“Transitioning to a new supplier can be challenging, but PRC made this transition as seamless as possible,” said Kyle Snyder, ELP power industrial vehicle lead. “As our production demands at ELP continue to grow, so does our equipment fleet. PRC’s commitment to quality service and attention to detail have helped to streamline our equipment ordering and lease tracking process.”
Diversifying its supply base is a key initiative for Honda that has led to the implementation of an annual supplier diversity event called Honda Partnership Network. Since 2015, Honda has increased diverse spend from $2.25 billion to over $3 billion dollars in 2017. These results are notable but Honda’s goals go beyond dollar figures. Building sustainable relationships with diverse suppliers will provide great benefits in the future.
“It is important that our supply chain be representative of our customers,” said Michael Bracey, team manager of North American Procurement Diversity. “Diverse companies provide innovative, cost effective business value for Honda and help us move forward. We do this because it makes sense and it is a part of our Honda DNA.”
Dave Mirsky is CEO and cofounder of Pacific Rim Capital, Inc., a leading independent lessor of material handling equipment, which he established in 1990. He is also a member of the Executive Committee of the Equipment Leasing and Finance Association.
The new US accounting rules for leases have finally arrived. They reduce some of the financial advantages of leasing. Equipment leased under operating leases (Fair Market Value) which were formerly not placed on the balance sheet now will be. Rentals will no longer be expensed in a straight line. Now, we will be depreciating an asset called a “Right to Use”; an asset that we don’t own. (The FASB in the USA is still going to allow straight line expensing of payments).
Not to be overly technical, but we can say one of the major benefits of leasing has been removed.
Does it still make sense to lease forklifts and related equipment?
The answer is that it does – under the correct circumstances. If one’s motivation is to do simple financial engineering, I would say no. However, if the reason that you are considering leasing in the future or actively leasing now is to maximise the efficiency of your materials handling equipment strategy, and if you generally use your equipment such that your hours will be high enough to result in increased maintenance costs within three to five years, then the answer is a definite “yes”.
The minute a forklift is started, its value decreases. Every hour on the meter results in a lower fair market value. MHE are depreciating assets. Depreciating assets, especially those used in business, make perfect candidates for leasing. That is why cars, jets, computers and similar equipment are often leased.
Let’s assume that you expect to use your forklift for 2,000 hours per year. If it is electric, that might argue for at least a five-year term. But the economy is uncertain and demand can waver. At the end of a lease, we often find that our lessees have underutilised their assets. We will suggest that this client renews (at a discount) the specific units with lower hours for a long enough term to reach the planned total, resulting in significant savings.
In contrast, a vendor lessor will usually tell you that you need new equipment because your leases have expired. This is their job, so don’t hold it against the messenger. However, the fact is that the vendor lessors work for the manufacturers and their job is to make it easier to sell more units. They do not represent you.
A lease will give you the flexibility to manage to your demand and the right lessor will be there to do what is in your best interest. The independent lessor works for you and not a bank or a manufacturer.
A good lessor knows that service, accuracy and flexibility are major differentiating factors between leasing companies. If you lease, look for a lessor who will work for you, will do things right, who can operate in the same countries and currencies that you do and who owns and controls its own assets. Check references. Talk to other users. Look for the experts.
In the future, I will write more about how to select a good lessor.
Article from forkliftaction.com