Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/518784
SPECIAL REPORT • 8 a 1-to 20-percent decrease; 18.2 percent call for a 21- to 40-percent decrease; 27.3 percent forecast a 41- to 60-percent decrease; and 18.2 percent predict a 81- to 100-percent decrease. The equipment categories most likely to experience an increase include equipment maintenance (41.8 percent), followed by wheel loaders (31.2 percent), and a three- way tie between automation and technology, excavators, and truck maintenance spending (27.7 percent). Equip- ment categories in which operators say they are unlikely to decrease spending include screen media (0.0 percent), screen boxes (2.1 percent), and a three-way tie between automation and technology, equipment maintenance, and scales (2.8 percent each). No equipment category surveyed garnered reports of decreased spending by more than 8 percent. To further understand equipment purchases, the survey asks what percentage of the capital expenditure budget was spent on long-term equipment purchases during the last 12 months. In response, 46.8 percent of operators say they spent 1 to 20 percent of their budget on long-term assets, 23.4 percent say 21 to 40 percent, 14.9 percent say 41 to 60 percent, 9.2 percent say 61 to 80 percent, and 5.7 percent say 81 to 100 percent of their budgets. Additionally, nearly a quarter of respondents (24.1 percent) say they expect that percentage to increase during the next 12 months. Equipment acquisition As iron has aged across much of the aggregates industry, operators continue to explore a growing range of ways to procure equipment, including the purchase of new and used equipment, as well as equipment rental and/or lease. Most respondents planning to purchase equipment say they will purchase it new. Not surprisingly, screen media is the new equipment that the largest segment (42.6 per- cent) says it will buy during the next 12 months. Following are automation/technology (34.0 percent), wheel loaders (27.0 percent), conveyors (24.1 percent), and scales (22.0 percent). The sole exception to the preference of buying new is in the category of portable plants. A total of 14.9 percent of respondents say they plan to purchase used portable plans in the next year, while 5 percent fewer (9.9 percent) say they will buy new portable plants. Other categories ripe for purchase of used equipment include wheel loaders (15.6 percent), excavators (12.8 percent), conveyors (12.1 per- cent), and washing/classifying equipment (9.9 percent). When it comes to equipment lease and rental, mobile equipment is king. Excavators and wheel loaders lead the pack, with 6.4 percent of respondents saying they intend to take temporary ownership of equipment in these cat- egories. Other likely short-term acquisitions include con- veyors (4.3 percent), off-highway trucks (4.3 percent), and portable plants (3.5 percent). It's worth noting that fewer operators plan to rent or lease portable plants this year than in 2012 (-2.9 percent), but more plan to buy new (+0.8 percent) or used (+4.0 percent). What are operators' top equipment challenges? When Aggregates Manager surveyed operators about their top concerns regarding equipment, responses could be summed up in the following three concerns: maintaining aging equipment, maximizing equipment utilization, and fi nding the right equipment operators. Many responses about equipment challenges fell into the category of fl eet age. One operator says his strategy to keep older equipment running is to buy popular brands of equipment that provide parts for older equipment. Another describes his challenge as "keeping the entire plant running while not replacing any large components and keeping our overall effi ciency high." Another recommends better preventive maintenance, more frequent inspections, and oil changes. Yet another notes that his operation focuses on "keeping equipment updated and maintained" while "adding additional equipment to keep pace with demand." Another group of respondents fall into the category of being less concerned with aging iron and more with operational effi ciency. For some, that means focusing on "being energy aware" of fuel and electricity use. While telematics appeal to operators who seek a better understanding of mobile equipment location and operating parameters, others are also looking for overall plant effi ciencies. Some note plans to reconfi gure an existing plant with new equipment, while others are focusing on specifi c bottlenecks such as crushers and screens. Personnel concerns were the fi nal common thread among respondents' equipment challenges. Many note the lack of qualifi ed workers, particularly when it comes to equipment maintenance and understanding of newer technologies. One operator says his operation prioritizes training on new equipment maintenance through the use of posters, wall charts, and information provided during weekly meetings. Another says he uses word of mouth, particularly through industry news and events, to locate qualifi ed operators. Others say they pay for operator training, while one says he plans to hire more women in order to get good equipment operators.