In today’s economy most crane owners struggle with this question; do we purchase a new crane or do we keep putting money into our old crane? And, while the crawler crane has long been established as the most common and practical type of crane to restore, what about your rough terrain crane?
Today, rough terrain cranes out number crawler cranes by 3-1 on many job sites and range in capacity from 25 tons to 150 tons. And, RT’s play vital roles on many construction projects. So how do you determine if your RT’s are good candidates for a remanufacture?
Here are a few questions you should ask yourself before considering purchasing a new crane or extending the service life of your aging rough terrain crane.
- What is my cost to replace?
- What is the value of my rough terrain crane as a trade or retail to the aftermarket?
- What do I gain by purchasing new?
- What will it cost to extend the service life of my existing crane(s)?
- Will repowering my crane add value?
Answering these questions will help you to vet your options and determine if you should consider a SLEP or remanufacture for your rough terrain crane.
WHECO recently went through a similar exercise with a customer and ended up performing a remanufacture on six Link-Belt RT8030 and 8040 rough terrain cranes. The cranes were part of a rental fleet and the owners were faced with the following situation: The cranes were all 9 or 10 years old, high hours of service, had various maintenance issues that required constant attention and had little value as trades. The cost to replace was very high and considering the current economic conditions brought the cranes to us to develop a scope of work and proposal to remanufacture them that made economic sense.
The owner saw that by breathing new economic life into these aging units he would have like-new units making them easier to rent, reduce his owning and operating costs, extend the depreciable life of the units and when the economy turns have something of value available to sell or trade.
As we worked together to develop the scope of work it became apparent that repowering two of them with Tier III compliant engines would make sense as it would distinguish and qualify those units for some specific government related projects. It turns out the before those two units were completed the owner had year-long rental commitments for them.
The bottom line here is that the customer was able to calculate and will realize an ROI based on extending the service life of his aging rough terrain crane fleet. It was practical to consider the remanufacture option and financially wise to pull the trigger. And, it was the close collaboration between our companies that allowed us to stay on time and budget to complete the project.
By Greg Etue – National Sales Representative, WHECO Worldwide Services