The amount of money you invest in your heavy equipment—from purchasing it to operating and maintaining it—has an impact on the return on investment (ROI) you experience. Preventative maintenance (PM) is a crucial component of increasing ROI and maximizing the use of your equipment. can help minimize downtime, extend your equipment’s life, and add resale value.
Even while PM is essential, it does raise the cost of ownership for your equipment. Any time you can lower the cost of ownership for your equipment, your company will save money.
What impact should maintenance expenses have on your heavy equipment purchases?
Choosing the right piece of heavy equipment that can handle the job is frequently the most critical part of buying it. Investments in specialized equipment are worthwhile since they enable your employees to work as productively as possible. However, there are occasions when you may be able to choose from a variety of equipment types for a job. You can get the most out of your purchase in terms of functionality and price by taking into account the overall maintenance costs.
Maintenance costs and heavy equipment.
Complex equipment like bulldozers, cranes, and excavators are often the heavy equipment that needs the greatest maintenance. These machines need a routine inspection, lubrication, and replacement of worn parts because they have multiple moving parts and systems.
Backhoes, compactors, and skid steer loaders are examples of heavy equipment that often require the least maintenance. These devices require less maintenance overall since they have fewer moving parts and complex systems, as well as being more robustly built.
It’s important to note that the actual maintenance costs will depend on factors such as the specific make and model of the equipment, the operating conditions, and how well the equipment is maintained.
Below are some of the primary types of heavy equipment maintenance associated with their own unique costs:
Preventive maintenance: To avoid equipment failure, this type of maintenance entails routine inspections and scheduled repairs. Preventive maintenance expenses include the price of the parts and labor as well as any downtime that results from the maintenance.
Overall, preventive maintenance is generally considered the most cost-effective as it can prevent costly breakdowns and prolong the life of the equipment.
Predictive maintenance: This type of maintenance involves using sensors and other monitoring devices to predict when equipment is likely to fail. The costs associated with predictive maintenance include the cost of the sensors and monitoring equipment, as well as the cost of analyzing the data and making repairs.
Both predictive and condition-based maintenance can be expensive to initiate, though they both justify their upfront cost by saving money on downtime and equipment maintenance.
Condition-based maintenance: Condition-based maintenance relies only on real-time sensor measurements. Once a parameter reaches an unacceptable level, maintenance workers are dispatched. This means that condition-based maintenance systems perform work only at the moment it is needed.
Condition-based maintenance in particular can be expensive due to the cost of maintaining sensor devices, so it’s best used on critically important equipment.
Breakdown maintenance: When performing this type of maintenance, failing equipment is repaired. Any additional costs related to downtime and lost production are included in the breakdown maintenance costs, together with the price of parts and labor.
Repairs: When a piece of equipment breaks down or malfunctions unexpectedly, repair maintenance is required. Depending on the equipment’s condition, repairs may occur infrequently, and the price is frequently influenced by the specific part that has to be fixed. Getting the equipment up and running as soon as possible is a top priority for repair maintenance.
Other Influential Factors
Costs of maintenance can depend on a number of variables, such as:
Type of equipment: The complexity and design of the equipment can affect the cost of maintenance and repairs.
Age of equipment: Older equipment may require more frequent maintenance and repairs than newer equipment.
Operating conditions: Equipment that is used in harsh environments or operates under heavy loads will likely require more maintenance than equipment that is used in more moderate conditions.
Maintenance schedule: Regular preventative maintenance can help reduce the cost of repairs and prolong the life of the equipment.
Availability of replacement parts: The cost and availability of replacement parts can affect the overall cost of maintenance.
Labor cost: The cost of labor to perform maintenance and repairs can also be a significant factor.
Downtime: Downtime caused by equipment failure can also add to maintenance costs in terms of lost productivity and revenue.
Fuel costs: The cost of energy or fuel to operate the equipment.
Regulatory compliance: The regulatory compliance requirements for the equipment.
Equipment size: The size of the equipment can also impact maintenance costs. Larger equipment may require more maintenance and repairs than smaller equipment.
Tracks or wheels: Whether the equipment has tracks or wheels can affect the wear and tear on the equipment and the cost of maintenance and repairs.
Tacked Equipment vs Wheeled
The cost differential between maintaining wheeled and tracked equipment is fairly significant.
Tracked equipment offers several advantages that make it well-suited for certain types of jobs. One of the main advantages of tracked equipment is its superior traction and support on soft or slippery surfaces. The tracks distribute the weight of the equipment over a larger area, which helps to reduce the pressure on the ground and prevent sinking or sliding. This feature makes tracked equipment well-suited for use in rough or challenging terrain, such as mud, snow, or loose gravel. Additionally, the tracks are designed to be durable and wear-resistant which helps to reduce the maintenance cost on the tracks. The strength of tracked equipment is its capacity for heavy loads and high-impact jobs. Tracked equipment is also known for its durability, it tends to be more dependable and last longer than wheeled equipment. Tracked equipment can be equipped with specialized attachments such as a bulldozer blade, excavator arm, or a drilling rig that can help to expand its capabilities and make it more versatile for different types of tasks.
Tracked equipment is not without its disadvantages, which should be taken into consideration when deciding whether it is the best option for a particular situation. One of the main disadvantages of tracked equipment is its lack of maneuverability. Due to the continuous contact of the tracks with the ground, it might be challenging to maneuver through narrow passages or past obstacles. Tracked equipment can be less effective for specific jobs since it often has slower top speeds than wheeled equipment. Due to the greater ground pressure and enormous size of the tracks, it can also damage delicate surfaces like floors or pavement. Tracked equipment may also not perform as well on soft or slippery surfaces, as the tracks can sink or slide in the mud, snow, or loose gravel. Furthermore, tracked equipment may require more frequent maintenance and repairs than wheeled equipment, as the tracks are exposed to more wear and tear, which ultimately can increase the maintenance costs. Tracked equipment tends to be more expensive to buy and maintain than wheeled equipment, which may affect a project’s budget.
Wheeled equipment offers several advantages that make it well-suited for certain types of jobs. The effectiveness and adaptability of wheeled equipment on smooth, flat surfaces is one of its key benefits. The wheels are typically designed for higher speeds and can handle rougher work surfaces than tracks. Wheeled equipment tends to be more maneuverable than tracked equipment, which makes it easier to navigate in tight spaces or around obstacles. Another advantage of wheeled equipment is its ability to handle high speeds and long distances. The wheels are typically more durable than tracks, which can help to reduce maintenance costs. Additionally, wheeled equipment is generally cheaper to purchase and maintain than tracked equipment. It can also be equipped with specialized attachments such as a plow, a dump body, or a crane that can help to expand its capabilities and make it more versatile for different types of tasks.
Wheeled equipment has a number of disadvantages that need to be considered. One of the main disadvantages of wheeled equipment is its lack of performance on soft or slippery surfaces. Because the wheels have a smaller surface area in contact with the ground, they can get stuck or lose traction more easily in mud or loose gravel. This can cause significant damage to sensitive surfaces like lawns, gardens, or landscaping. Wheeled equipment may require more frequent maintenance and repairs than tracked equipment, as the wheels are exposed to more wear and tear, which ultimately can increase the maintenance costs. Wheeled equipment may be not suitable for heavy load applications, such as mining or construction, and may not be able to handle rough terrain. Wheeled equipment may not be as durable as tracked equipment in some cases, which could lead to higher replacement costs.
Size Of The Equipment (Small vs Large)
The cost of maintenance can be significantly impacted by the size of heavy equipment. Larger equipment typically requires more maintenance and repairs than smaller equipment due to the increased complexity and number of parts. The larger size also means that more resources are needed to move, maintain and repair the equipment. For example, larger equipment may require specialized cranes or lifts to access certain parts, which can increase maintenance costs. Additionally, larger equipment may also have more wear and tear on certain components, like brakes and tires, which will have to be replaced more frequently. The wear and tear on some parts, such brakes, and tires, may also be greater on larger equipment, which will have to be replaced more frequently.
Larger equipment can have more complex systems and subsystems, requiring more specialized technicians and tools to repair and maintain them. Which can increase the labor cost and the cost of spare parts.
Small equipment is usually less expensive to purchase and maintain than larger equipment, as it has fewer parts and is easier to access for maintenance and repairs. Additionally, it often uses less fuel, and due to its smaller size, it can operate in smaller space
Therefore, it’s important to consider the specific requirements and conditions of the job you intend to use it for before selecting the appropriate size of equipment to minimize maintenance costs and prolong the life of the equipment.
Engines
Heavy machinery’s complexity and engine size can both significantly affect maintenance expenses. Larger engines often have more systems and parts, which can make repairs and maintenance more difficult and expensive. The larger and more sophisticated engine also necessitates the use of more specialist tools and personnel, which might raise the cost of labor. Larger engines may also use more gasoline and need oil changes and other maintenance procedures more frequently, which can raise the overall maintenance costs.
Smaller engines are simpler and less difficult to service. They often use less gasoline, which can save operational expenses. The smaller engines may not be able to handle the same loads or perform as well in certain jobs as larger engines.
Before choosing the right engine size and complexity to reduce maintenance costs and increase equipment lifespan, it’s important to take into account the user’s unique requirements and conditions. Additionally, utilizing cutting-edge technology, such as electronic control systems, can enhance the performance and efficiency of the engine, ultimately lowering maintenance costs.
Spare Parts Inventory Costs
The cost of replacement parts can significantly affect the cost of maintenance for both large and small equipment. Depending on the type of equipment and the specific part in question, the cost of spare parts can vary substantially. Because of its size, complexity, and need for specialized parts, the cost of spare parts for large equipment may be significantly higher. A replacement engine for a large piece of equipment, for instance, can be far more expensive than one for a smaller piece of equipment. The availability of replacement parts may also be problematic because some parts might only be offered by the original equipment manufacturer, which would raise the price.
Small equipment spare parts are frequently more affordable and accessible. Additionally, they are less complex and easier to replace, which can help reduce labor expenses. However, the price of spare parts might increase over time, particularly if the equipment is used frequently or under demanding conditions.
To minimize maintenance costs, it’s important to keep track of the spare parts inventory and to plan ahead for replacements. Utilizing refurbished or aftermarket parts might also help to reduce costs. When choosing equipment, it’s important to take spare costs into consideration as they can significantly affect overall maintenance expenses.
Environment
Your heavy equipment’s operation and the environment in which you utilize it can also play roles in the types of maintenance costs it generates.
There is a chance of equipment damage and failure anywhere moving parts come into touch with your worksite. The speed and durability of your heavy equipment can also affect how frequently they need maintenance or repairs. As a result, equipment used for more high-impact jobs may need more maintenance than equipment that transports or moves material.
Elements that contribute to equipment wear and tear may include repetitive use of a specific equipment part and continuous digging through tough material. Equipment used in this capacity may incur higher overall maintenance costs than others in less demanding industries.
The environment in which you work and the weather conditions can add maintenance concerns on top of the type of job that your equipment does. If you have a year-round job, you might see seasonal differences in maintenance costs:
Spring
The expenses of maintaining large pieces of equipment might change significantly in the spring. Heavy machinery may need to undergo a thorough inspection and servicing before it can be put back into use after spending a significant amount of time idle during the winter. This can involve doing things like checking the fluid levels, changing the oil, and repairing any old or broken parts. These activities may come at a high cost, particularly if the equipment has been left dormant for a long time.
Spring and fall weather can be more difficult for heavy equipment, resulting in increased wear and tear and higher maintenance expenditures. In order to prevent these costs, it is crucial to have a seasonal maintenance strategy in place.
To avoid these costs and make sure the equipment is in good operating condition and prepared for the new season, it is important to have a spring maintenance schedule in place. To avoid any damage and extend the life of the equipment, routine inspections, lubrication, and cleaning are also essential.
Summer
The expense of maintaining heavy equipment may increase throughout the summer. As the temperature rises, heavy equipment may be utilized more frequently and for longer periods of time, which could result in more wear and tear over time. This can involve things like changing the oil, checking the fluids, and replacing any worn-out or damaged parts.
Summer weather conditions can be harsh on heavy equipment, leading to increased wear and tear, which can also drive up maintenance costs. For instance, equipment that is routinely exposed to the sun or at high temperatures may experience problems like fluid leaks or overheating. The environment, including dust, sand, and other elements, may also damage the equipment.
To minimize these costs and ensure sure the equipment is in good operating condition, it is important to have a summer maintenance schedule in place. To avoid any damage and extend the life of the equipment, routine inspections, lubrication, and cleaning are also essential. This will also help to minimize downtime and keep the equipment running efficiently throughout the summer season.
Fall
Fall can also have a big impact on how much it costs to maintain large machinery. Heavy equipment that will be stored for the winter may need to be repaired and ready for long-term storage when the weather begins to get colder and rainier. This can involve activities like sanitizing and lubricating the equipment, unplugging the batteries, and covering or shielding the equipment from the elements. Depending on the size and complexity of the equipment, this may get expensive.
The fall weather can be more difficult on heavy equipment, resulting in more wear and tear and higher maintenance expenditures. For instance, rust or corrosion problems may exist on equipment that has been exposed to a lot of rain or snow. Storms in the fall can also damage equipment by denting or breaking parts.
To minimize these expenses and make sure the equipment is in good working condition before it is stored, it is important to have a fall maintenance plan in place. Regular inspections, lubrication, and cleaning are also important to prevent potential damage and prolong the life of the equipment.
Winter
Heavy equipment maintenance expenses can be significantly impacted by winter. The cold weather and snow can cause damage to equipment, such as frozen fluids, cracked hoses, and worn or damaged parts. Depending on the size and complexity of the equipment, this could require repairs or replacements that add up in costs
Winter weather conditions can also be harsh on heavy equipment, resulting in greater wear and tear and higher maintenance costs. For instance, equipment that is constantly exposed to snow and ice may experience problems like rust or corrosion, or it may struggle to start because the batteries are frozen.
Before the winter season, it is important to have a winter maintenance schedule in place. This involves taking care of things like covering the equipment, keeping it warm and dry, inspecting the fluids and batteries, and adding antifreeze to keep it from freezing. To avoid any damage and extend the life of the equipment, routine inspections, lubrication, and cleaning are also essential.
New vs. Old Equipment
When comparing maintenance costs, new and old equipment often vary. New equipment has brand-new parts that haven’t experienced wear During the warranty period, the manufacturer will normally pay for some repairs or replacements on new equipment. Newer equipment is frequently more energy-efficient, which over time can result in lower operating expenses. However, the cost to buy new equipment can be significantly higher than the cost to buy used equipment.
Older equipment needs more regular and expensive maintenance as it ages and depreciates. Due to wear and tear from repeated use over time, older equipment may need more frequent and expensive repairs. Older equipment could also be less energy-efficient, which might result in higher operating expenses.
It is important to consider the total cost of ownership when deciding whether to purchase new or older equipment. This includes the costs of initial purchase, ongoing maintenance, and how it will fit into the budget and operational plans. It’s also important to take into account whether replacement parts are readily available and the possibility of future updates or changes in the industry that may affect the equipment’s performance or compliance.
Other Maintenance Costs To Consider
In addition to the costs associated with the different types of maintenance, there are several other factors that can affect the overall maintenance costs of heavy equipment.
Depreciation: Heavy equipment can depreciate quickly, and this can affect maintenance costs as older equipment may require more repairs and replacement parts.
Insurance: Heavy equipment insurance can protect against equipment loss or damage, but it can also add to the overall maintenance costs.
Fuel and energy costs: Heavy equipment requires a lot of fuel and energy to operate, and fluctuating fuel and energy costs can affect maintenance costs.
Operator training: Properly trained operators can extend the life of the equipment and reduce maintenance costs by operating equipment safely and correctly.
Technical support: Having access to technical support and resources for troubleshooting and repairs can also affect maintenance costs.
Protecting Your Investment
Choosing between new or old equipment when it comes to maintenance expenses is a complex decision and several; factors should be taken into account. While the manufacturer will normally cover the cost of any repairs or replacements within the warranty term for new equipment, the initial purchase price can be much higher than that of older equipment. On the other side, due to wear and tear from repeated use over time, older equipment may need more frequent and expensive repairs.
The total cost of ownership, which includes both the initial purchase price and continuing maintenance costs, should be taken into account in order to reduce maintenance costs. A Computerized Maintenance Management System (CMMS) preventative maintenance program can be an effective solution to increase performance, prolong the life of equipment, and decrease the likelihood of equipment breakdowns. It’s also crucial to take into account the accessibility of replacement parts and the possibility of future upgrades or changes in the industry that hat may affect the equipment’s performance or compliance.
Overall, the decision of choosing between new or old equipment should be based on a comprehensive analysis of the cost of ownership, expected usage, and the specific needs and requirements of the organization.
