Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/285780
April 2014 | EquipmentWorld.com 12 reporter | by Equipment World staff T he Chinese ma- chines are here; why aren't U.S. contrac- tors buying more of them? The up to 40 percent price differential between these machines and established brands would turn most buyer's heads, especially since quality issues seem to be diminishing. The answer lies in con- tinuing, if not universal, aftersales uncertainties; it's all fi ne to get a great deal on a machine, but if you can't get parts or service in a timely manner, that value can quickly evaporate. This aftermarket discon- nect has prompted two equipment veterans to form a company aimed at calming contractor fears over buying Chinese-made equipment. International Construction Products, led by former Sany America president Tim Frank and Wes Lee, previously with Volvo Construction Equipment, has a basic premise: Chinese manufacturers are offering good quality machines, they just don't know how meet North American support expectations. "Our goal is to get this thing right," said Tim Frank, in an interview with Equipment World on the eve of ConExpo. "These prices always get someone's attention, but frankly, there's been a great disappointment after that. Now a customer can buy this low cost product with the confi dence of support," Frank said. ICP has partnered with its fi rst signed manufacturer, Lonking, which offered wheel loaders, excavators, dozers and rollers at its ConExpo booth. What American contractors need when considering Chinese-made equipment is comfort, and lots of it, says ICP. It proposes to ease the way in a number of ways: Buying: "We're going to break the mold on how these products come to market," Lee says, noting that while contractors like using dealers, they've also grown more comfortable with buying online. So ICP is giving users a choice: work through an ICP dealer partner, or buy online through IronPlanet. The price will be the same – for example, $137,000 for a 4.5-cubic-yard wheel loader – whichever route you choose. "While we ob- viously make more money with the direct sale," Frank says, "we know we need dealers in the mix to make this work." Frank expects to have 20 to 30 retail deal- ers by the end of the year. "IronPlanet will be the en- gine that drives our online sales, with pricing, war- ranty, fi nancing, etc., on to the shopping cart and check out," Lee says. "It's like buy- ing a sweater, only a really expensive, hydraulically powered sweater." Servicing: Buyers can select their local dealer to perform their warranty work. ICP's service dealer network – soon with more than 350 locations, Frank says – will also be available for this work. And if you've got an extensive in-house service operation, you may qualify to do your own warranty work. Technology included: Each machine comes with three years of free telematics and Bluetooth-enabled hands-free calling. Cherry picked product: ICP vets each manufac- turer, looking for repeatable quality and consistency. "We make sure the product meets the expectations of the North American market," Frank says, "especially in terms of productivity and aftermarket support." Known componentry: Machines imported by ICP will have components – such as Cummins engines and Kawasaki pumps – widely accepted and serviced in North America, a common tactic for fi rms wanting entrée into the United States. Western best practices, including a three-year, 3,000-hour warranty, 48-hour machine-down parts guarantee, and 100-point inspection on incoming machines. ICP also has a 30-day money back guar- antee (you pay for hours run and transport), and a payback promise of rental machine costs – wherever you rent it – if the parts guarantee isn't met. "We deliver more profi t to end users in an immedi- ate way by lowering capital costs on equipment by up to 40 percent; that has a huge impact on their bottom line profi t," Frank says. – Marcia Gruver Doyle ICP offers U.S. contractors comfort zone when buying deep-discount Chinese machines Lonking, which recently partnered with ICP, reportedly sold all the machines in its ConExpo booth the fi rst two days of the show.