Question-and-Answer Session
Operator
Our first question is from Kartik Mehta - FTN Midwest.
Kartik Mehta - FTN Midwest
Wanted to get a little bit better understanding of your comment about the economy, Rick. I understand there’s some softening in some other industries this time around than there were in the past. Is that something that started happening later in the quarter, or was that something you started evidencing throughout the quarter, and as a result you just became a little bit more cautious?
Rick Marcantonio
I’m not sure it happened late. I don’t think I can peg when it happened within the quarter. We’ve been watching the economy for some time. We talked a quarter or two ago about the impact from the automotive industry, for example, and we’ve seen some continued softness. And our projection did take that into consideration.
But I’d still say that we have a pretty strong forecast in place. If you take the midpoint of our range, we’re looking at a roughly 7% increase in revenue during the third quarter. And as Jeff indicated to you ? we didn’t break it out in detail ? we’re expecting some downside or some negative growth in our direct purchase business because of the roll out of a program with a large customer a year ago. So that would tell you that the rental side of the business is up even greater than that, or our forecast is for that.
Kartik Mehta - FTN Midwest
So in this environment, what has your experience been and ability at price increases? Obviously, energy costs are going up, which you indicated that it’s probably having somewhat of a negative impact on the cost side. So I’m wondering how your customers have reacted to price increases and if you’ve been able to achieve those?
Rick Marcantonio
That’s a very good question. When I joined the company 5 1/2 years ago, we were in a really bad economic downturn at that time and it was very difficult to price during that time period. I think that we’re not seeing that. First of all, I don’t see the economic downturn today that we’re in anywhere near like it was back then, that’s number one.
Number two, we’ve continued to be able to price in this environment. And I think that partly speaks to the strength of the programs that we’re bringing forward that gives us a chance to differentiate. So, we’re still able to price. Doesn’t mean it’s incredibly easy all the time, but it’s not like it’s impossible either.
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