Issue link: https://read.dmtmag.com/i/75471
SPECIAL REPORT purchase low-hour units at the end of the lease as a strategy to help defray the cost of new equipment. We also asked operators about the impact of engine emis- sions and how Tier 4 Interim and Tier 4 Final rules will influ- ence their equipment buying decisions. Nearly one in five re- spondents say they plan to purchase earlier versions of equip- ment before new requirements take effect, while 10 percent say they plan to wait to see how it performs in the field before investing in new engine technologies. The vast majority (68.2 percent), however, say necessity, not engine technology, will drive their equipment procurement. Influential factors Reliability is the single most important consideration for operators when buying equipment, respondents say. Nearly 93 percent rate it as either "important" or "extremely impor- tant" when deciding what equipment they will buy. Coming in at a close second, safety is the next most influential factor for purchase. A combined 89.1 percent of respondents rate it as an "important" or "extremely important" part of the buying decision. Other factors considered "extremely important" include parts availability (67.3 percent), dealer service (63.6 percent), and production capacity (57.3 percent). Factors considered "not important at all" are a bit of a surprise. Operator comfort (7.3 percent), fuel efficiency (6.4 percent), equipment manufacturer (5.5 percent), warranty (5.5 percent), and dealer service (5.5 percent) are all listed among the factors having the least influence over purchasing decisions. The feedback on fuel efficiency, in particular, is in contrast to anecdotal responses in the survey. When asked about their biggest equipment challenge, numerous respondents cite fuel efficiency. To cope, solutions mentioned by respondents include reviewing production capacity and right sizing the ma- chine to the application, researching fuel options, eliminating idling time, and buying more fuel-efficient units. What's next? Based on responses to this survey, it's clear that many opera- tors are scrutinizing all equipment-related spending and looking at ways to squeeze as much value as possible from their iron. For many, that means extending the number of hours on equipment and boosting in-house and dealer main- tenance regimens. As the age of equipment in the aggregate industry continues to grow, operators are keeping a close eye on cost and analyzing when it's a better bet to replace rather than repair or rebuild. AM Table 1. Operator spending intentions for the next year. Automation/Technology Breakers Class 8 Haul Trucks Conveyors Crushers Dozers Dredges Drills Equipment maintenance Excavators Off-highway haul trucks Portable plants Scales Screens (boxes) Screens (media) Ticketing equipment Trailers Truck maintenance Washing/classifying equipment Wheel loaders Spending Spending Increased 32.1% 12.3% 7.4% 32.1% 34.6% 15.7% 13.3% 21.4% 36.6% 16.7% 25.7% 19.4% 23.7% 22.9% 26.6% 24.6% 7.7% 17.1% 20.8% 30.5 12.3% 16.7% 9.5% 14.1% 15.7% 23.3% 9.5% 2.2% 12.8% 7.1% 12.5% 13.2% 7.2% 3.8% 10.1% 10.8% 6.1% 4.2% 7.3% Operators are most likely to increase spending in maintenance of existing equipment during the next 12 months. AGGREGATES MANAGER August 2012 Decreased 4.8% Spending Stayed About the Same 63.1% 75.4% 75.9% 58.3% 51.3% 68.6% 63.3% 69.0% 61.3% 70.5% 67.1% 68.1% 63.2% 67.1% 69.6% 65.2% 81.5% 76.8% 75.0% 62.2% 21 2012 Aggregates Manager Equipment Survey.