The booming mining, construction, transport, renewable energy and agricultural sectors all rely on heavy machinery to do the heavy lifting. Owners and operators in these fields provide basic goods and services we use daily. These pieces are the backbone of the industry, from trailers and tractors to cranes and conveyors.
Why Buy or Rent Used Heavy Machinery
New machinery may fulfil your long-term business goals by ensuring improved reliability and the latest tech or features for demanding projects. Second-hand equipment, however, cuts costs in ongoing jobs, can readily be deployed to the construction or worksite and gives business owners the flexibility to meet current needs. Consider used machinery and equipment if the following points boost productivity without affecting deadlines and project requirements:
- Lower upfront costs – there are significant savings when going used. New tractors, dozers, loaders, excavators or trailers can all cost upwards of six figures and create financial burdens that catch many owners and operators off guard. Choosing used, but reliable pieces with low work hours leaves more funding for other necessary inventory, such as grapples, buckets, hoists, and other attachments. Also, consider the benefit of taking on lower debt and the possibilities of directing funds elsewhere.
- Lower depreciation – with lower depreciation, used equipment holds its value. Current prices have depreciation already factored in, often up to 40 per cent within the first year.
- Assortment and availability – with models and equipment like skids and excavators updated every few years, there’s considerable stock on the used market. The chances of finding what’s suitable for the job are higher. Moreover, discontinued machinery may be more suitable for your current needs, but not available now. This can be the difference whether you secure the contract, or lose out, especially if you have to wait for months for new inventory to arrive.
- Flexibility – renting equipment that you need now offers flexibility. There are no waiting periods, most of what’s available is reliable and the option to buy at the end of the project is another bonus.
- Familiarity – get equipment that is familiar to use, has available parts and is easy to maintain. Experienced workers will already know how to operate used machinery, and learning curves for new employees aren’t as steep.
Main Considerations
Solutions that are cost-effective and get the job done are often the best choice. If you’re still considering whether to splurge on new machines or go the used route, consider the specifics of your project, whether the latest tech makes a difference, and if you harbour qualms about reliability and maintenance needs in used items.
The nature and duration of what you’re working on might mean new equipment will last in more demanding uses. Additional features, easier controls or automation may also cut work time, and warranties should cover potential breakdowns. With that said, used inventory in good condition and fewer work hours will work just as well.
This leads to your next consideration. If you’re on a tighter budget, buying used is often the only way to get ahead, and for smaller operations, that covers most businesses. Just factor in potential parts and labour if something breaks down. What you decide on also depends on how far you’ve come in establishing your presence in the sector. Many operations use a mix of both new and used equipment.
Questions to Ask Before Parting With Your Money
Balancing budgets with productivity is the main priority. Before spending larger amounts, consider the answers to a few key questions:
- Is brand loyalty key to your success? – Brand loyalty is high, especially in the construction and mining sectors, with bigger names taking the cake. This has to do with perceived quality, more detailed product lineups and aftersales support. And financially it makes sense, regardless if this is new or second-hand machinery. Resale values are always higher with established brands. However, also consider deals and offers that undercut prices by larger margins, particularly in equipment that you need now.
- Private sellers or dealerships – both have their pros and cons. Lower prices are often found in private sales, but dealerships hold the upper hand in providing a full-service history with lower hours.
- Hours and warranties – hours determine general reliability. Once machines exceed their maximum working hours, they’re more prone to failure. And deepening on the machine, repairs can get costly, and lead to unwanted downtime. For peace of mind, consider a machinery retailer that provides clear warranties.
- Service history – insight into repairs, inspection schedules and changed parts speaks volumes of the condition of the equipment, even before seeing it in person. It can also tell buyers of potential problems that can face in the future.
- Availability of parts – are parts readily available? Can they be ordered, and at what price? Do your research to find serviceable machinery that won’t break down while on the job.
- Try before you buy – test the machinery to see if it is operable. This is the easiest way to assess the condition of machinery and decide on ease of use and suitability. Skip sellers who refuse to test.
What Are Businesses Buying?
Small and medium-sized enterprises (SMEs) comprise the bulk of businesses engaged in construction, agriculture, manufacturing, mining and warehousing. This is also the majority of privately owned shipping companies. Excavators in all sizes and capacities account for half of the sales in construction, followed by skid steers and loaders. The majority of sales are of used equipment, though specialist machinery such as graders, screeners, or rollers, is often bought new.
Tractors, harvesters, and cultivators make up the top three in the farming sector, and they are closely followed by planters and sprayers. Used prime movers are big in transport and warehousing, tippers and concrete trucks in construction, and flatbed tray trucks in forestry. In general warehousing and storage, the biggest sellers are petrol and diesel forklifts, followed by smaller stackers and pallet trucks.
Mining companies purchase excavators, skids and dozers in general operations, as well as specialist gear like rotary drill rigs, belt or track conveyors, and graders in remote or new operations.
Besides prices, durability and clocked hours, buyers also look at packaged attachments and accessories, consumables and regular service parts for the best deals.
