In today’s economic climate, all construction companies are finding ways to cut costs, especially when it comes to construction equipment. The popularity of equipment rentals has shot up, and not far behind is growth of remanufacturing or refurbishment. Rather than purchasing brand new equipment from suppliers and vendors, remanufactured equipment has become a viable option, and often costs half of what a brand new machine may cost. Prior to making the commitment to refurbishing equipment, this article discusses a few factors you should first consider before making a decision. Investing in construction equipment is an extremely important decision, and having the most information regarding all of your options will prove to be beneficial.
Defining Remanufactured Equipment
Refurbished equipment is achieved through the process of reassembling and replacing component parts to restore it to a state that resembles how it was first manufactured. During this process, all components are addressed, including cosmetics, operation, mechanical and electronic. The end goal for this type of equipment is to get it as close to its original form as possible. Remanufacturing often begins with addressing cosmetic issues like paint, tire tread and operator seats before moving on to fixing more important aspects like engines, transmissions and brakes. Lastly, a computer diagnosis is needed to do a complete analysis of the machine at a service center.
The Importance of Service Centers
If you are deciding on remanufacturing equipment, there are many things to look for in terms of service center quality. When identifying a service center, ensure you find one that performs detailed inspections, reports the results back to customers, and provides quotes on how much the entire project will cost. Other service centers have a flat-rate no matter how much changes need to be made. When refurbishing old equipment, take the time to see your options from both types of service centers and see which type of service will best suit your business. Consider not only the cost benefits, but which type of service center will provide the most quality for your new equipment items.
No matter what type of center you choose, make sure your selection has standards by which their procedures, systems and staff are held accountable. Typically, brand-certified refurbishment centers are a good choice. Like any other large financial investment, doing the proper research and finding a partner that is transparent, honest and accountable will be key in ensuring a trustworthy service center.
Lastly, familiarize yourself with the specific technicians performing the refurbishment. Find master-level technicians who have a proven track record of refurbishment. A good service center will also offer customers a warranty for refurbished machinery. Like any good vendor or supplier, if they promise they can remanufacture your equipment to resemble its original form, they must also offer a warranty.
When Should I Refurbish?
A refurbishment job done right can provide significant savings for any construction company. Finding the right service center and receiving multiple quotes can help determine where to make the most worthwhile investment. Before choosing to refurbish, business owners and equipment managers must consider the type of machine, the size of the fleet and the age and condition of the machine. To make the most out of your investment, consider remanufacturing mid-sized equipment and larger pieces like wheel loaders and excavators. Smaller and compact equipment often have greater resale value than larger items, which make them less profitable after it has been remanufactured.
A full refurbishment typically takes up to 2 months so construction companies must be able to plan for downtime and have the necessary replacements ready. The decision to remanufacture may be difficult for smaller companies with small fleets, but are more beneficial to larger companies who can accommodate downtime due to larger fleets.
Benefits of Remanufactured Equipment
Refurbished equipment can sometimes be half the price of brand new equipment. If done right, the quality of a remanufactured piece is very close to new ones as well. In addition, resale value also goes up and can recapitalize on depreciation costs that a piece of equipment may have incurred. In addition, remanufacturing equipment saves construction companies time and money that would have been spent on learning and training on new equipment. After refurbishment, employees are already familiar with the equipment and machinery, and can put it to use right away.
The wearing down and deterioration of construction equipment is inevitable for all construction companies. Rather than purchasing brand new equipment, consider refurbishing what you currently have. Also, after establishing a reputable service center, have equipment managers plan around future machinery refurbishments, to save your company time and money in the long term. For more, learn how to get the most out of your construction equipment.