How Turner Construction is Boosting Efficiency

Turner Construction Company has officially launched First Equipment Company (FEC), a new subsidiary focused on equipment rental and site services.

This centralised entity is designed to streamline the procurement process and increase efficiency across the company's projects. It will also benefit the 40,000 trade contractors it engages with annually.

The move signals a shift towards vertical integration within the construction sector. General contractors are looking for ways to control supply chains and reduce project friction.

The wholly owned subsidiary takes a model previously utilised on large-scale advanced technology jobs and expands it to nationwide coverage. This expansion includes services for external general contractors, broadening the potential market reach.

FEC aims to simplify the sourcing and management of a wide range of equipment. This includes heavy machinery and operating gear along with temporary power, lighting, office and restroom trailers, fencing and site controls.

By centralising procurement, operations and support into one dedicated organisation staffed by experienced professionals, Turner intends to reduce administrative burdens.

The goal is to improve coordination whilst providing fast and reliable support to project teams and trade partners. This approach could allow project teams to focus less on logistics and more on the core aspects of construction delivery.

Centralising equipment rental services

The model deployed by FEC has reportedly demonstrated benefits on several Turner projects prior to this wider rollout. By consolidating these services, the company seeks to leverage its scale to provide better outcomes for clients and contractors.

"First Equipment Company is a strategic investment in our ability to deliver projects more efficiently," says Shannon Hines, Senior Vice President at Turner Construction.

"By supporting the contractors working on our projects with a consistent, streamlined equipment experience, we help improve productivity in the field; benefiting our project teams and, ultimately, our clients."

FEC integrates procurement, operations and support by embedding staff locally to handle sourcing, logistics, administration and issue resolution. According to Turner, this structure enables project teams and trade contractors to focus on execution, safety and quality.

As a subsidiary, FEC leverages Turner's enterprise buying power whilst operating independently. It aims to align with the company's standards for client service and trade partner collaboration.

Enhancing project delivery efficiency

This launch forms part of a wider investment strategy by Turner regarding its project delivery capabilities. FEC sits alongside other initiatives such as xPL Offsite for prefabrication and SourceBlue procurement services.

The strategy also includes the Turner Accelerated Payment Programme, Turner Engineering Group and expanded self-perform operations. These offerings reflect a strategic focus on efficiency, trade partner support and enhanced client value through integrated solutions.

"FEC reflects our commitment to continuously improving how we serve our clients and partners," adds Josh Ehlers, National Manager of First Equipment Company.

"By enhancing efficiency at the project level, we're strengthening outcomes for everyone involved."

For procurement professionals, FEC exemplifies how tier-one contractors are vertically integrating supply chain services to capture value. The centralised model offers potential lessons in category management for site services and rentals.

In this sector, scale, standardisation and local execution can transform spend visibility and supplier coordination. Trade contractors could gain simplified resource access whilst main contractors might secure loyalty and efficiency advantages.

Transforming supply chain operations

Clients may also benefit if contracts encourage such innovations without introducing lock-in risks. Turner's approach could prompt strategic RFP design that rewards integrated providers.

It may also lead to robust SLAs for equipment uptime. This could result in leveraging contractor subsidiaries to cut project costs whilst preserving competition.

Amid ongoing construction pressures resulting from labour shortages, material cost inflation and tight schedules, FEC signals a trend where general contractors evolve into service platforms.

Procurement drives differentiation by bundling equipment, payments, engineering and sourcing to reframe risk sharing and value creation across delivery chains.

Turner's First Equipment Company provides procurement leaders with a live case study in supply chain integration powering project success.

By blending operational control with partner enablement, it aims to meet client demands for speed, certainty and cost control in complex capital programmes.