Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/201186
ICUEE report | by Marcia Gruver Doyle MGruver@randallreilly.com The used HDD market is growing: What to look for in a used drill whether you're buying or selling W hile the ICUEE show in Louisville was an opportunity to see the horizontal directional drills fresh from the factory, it also offered attendees the chance to kick the tracks on used drills. We talked to two exhibitors, MTI Equipment and HDD Broker, to get a feel for what's happening in the used drill market. Although MTI Equipment was acquired by The Charles Machine Works last year, and Vermeer owns HDD Broker, both companies emphasized they are brandagnostic when it comes to selling used drills: all makes and models are welcome. "We serve the customer who's Kevin Smith, MTI: concerned "We're appealing to about the more than just starthigher up companies." prices of buying new and the fear of buying used," says Kevin Smith, MTI's general manager. The two Bob Martin, HDD companies Broker: "We're the jungle guide" to help you with used equipment. approach the market in different ways. MTI acquires all of its for-sale inventory, bringing it into its location in Englewood, Florida, where it's inspected and serviced. "Then we'll actually drill with the machine three to five times, continuing to look for issues, and repairing them before sale," Smith says. "That way, we can show buyers different machines, have them actually operate a few and help them make an educated decision." Can't make it to Florida? All machines are listed on www.mtiequip.com. HDD Broker, as the name implies, is a brokerage firm that advertises and sells rigs for private owners, banks, and equipment dealers worldwide, marketing through its website, www.hddbroker.com. Inspections are handled through qualified third parties. "We're not selling a product, we're selling a service. It's not our machine," says Bob Martin, HDD Broker's general manager. "We're the jungle guide to help you purchase this equipment. We know what to look out for and the path that needs to be taken." "The used HDD marketplace is naturally growing along with the overall machine population, as horizontal drilling has become more widely accepted around the world," Martin says. While the United States remains HDD Broker's largest market – with 60 percent of the units it sells staying here – Canada, Russia, Colombia, Venezuela and Brazil have been good export markets. "We're appealing to more than just start-up companies," Smith says. "We're also seeing companies use our machines for secondary units for short term work. When a contractor is buying used, they need to be selective." Key wear areas for drills include the rack and pinion, vise assemblies, frames and the drill pipe thread. "A large percentage of the machines that come in will have issues and typically need repairs on the mud pump," Smith adds, "and you don't find that unless you hook it up and drill with it. If a contractor is not familiar with these units, they need to make sure they have someone inspect it who is," Smith says. Market trends According to Martin, 24,000- to 60,000-pound pullback machines are popular, reflecting their versatility in installing fiber, water and gas. "Pipeline and energy have been strong for the past few years, so the 100,000-pound-plus machines continue to sell well." "We've also seen a shift from the 24,000- to 30,000-pound class to more units in the 20,000-pound class," Smith comments. "Fiber installations continue to drive a lot of activity." The used market, of course, is tied to the new machine market. When customers switch to new models, their older models enter the used market. "As the prices come out for new machines, it establishes the price for used drills," Smith says. "And this is a tremendous year for that, since manufacturers have introduced a lot of new drills," Martin comments. Another factor: Tier 4 equipment. EquipmentWorld.com | November 2013 19