When to Repair, Rebuild or Replace Heavy Equipment
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Answering the question of is it better to repair, rebuild, or replace heavy equipment is vital to getting the most from your investments. Replacing machinery too soon can potentially waste money. However, repairing equipment that requires such services frequently will also cost you. Find out what you need to consider when faced with a poorly performing piece of heavy equipment.
How to Tell Whether to Repair or Replace Equipment and What Factors to Consider
Repairing involves fixing only damaged components. Rebuilding restores the equipment's components to like-new form. Replacement requires purchasing a new or used piece of heavy equipment to take the place of the damaged machinery.
When choosing from among these options, you must ask yourself several questions before deciding to replace or rebuild equipment. The answers will inform your decision to help you save money without sacrificing performance. Carefully consider the following questions and factors:
- Is your heavy equipment still covered under warranty?
- Do you still owe payments on the equipment, or is it completely paid off?
- Will performing repairs or rebuilding the equipment improve performance?
- Do you need an upgrade in power or performance compared to the existing equipment you have?
- Does your existing equipment have resale or scrap value to offset replacement costs?
- Can your company afford to pay taxes on the replacement equipment?
- Will replacement equipment give you a competitive edge in bidding?
- Will repairing, rebuilding, or replacing best optimize your operation costs, including fuel, future part replacements and longevity?
Note that most of the above factors focus on the financial side of the decision. Heavy equipment is an investment for your company. Therefore, the decision of whether to repair, rebuild or replace equipment should focus on the return you can get from your initial investment and the machinery's services.
When to Repair Heavy Equipment
Sometimes, you can simply repair heavy equipment to restore its operation. Choose this option if you still have payments you need to make, the machinery falls under a warranty that covers the work, you need the equipment quickly, or only one or two components requires service.
Repairing heavy equipment is the fastest way to get it functioning again. In fact, field repair brings professional technicians to your job site. By not needing to transport the equipment to and from a repair site, you save time. Additionally, your company saves money because you will experience the smallest disruption in productivity caused by the malfunction and repairs.
Repairing heavy equipment is not always the best option, though. In some cases, the repair will contribute the least longevity. Additionally, if you have discontinued equipment models, finding replacement parts may be difficult. Another issue with having outdated machines is the inability to make significant upgrades in performance or technology through repairs alone.
When to Rebuild Heavy Equipment
Another option for restoring operation to your heavy equipment is a rebuild. You can extend your heavy machinery's life through rebuilding and restoring systems and components. The results of a quality rebuild should bring your equipment back to a like-new condition.
If you have several issues with your heavy equipment that need repairs, consider rebuilding instead. Through a rebuild, you can have more systems replaced or restored than repairs would allow for. Additionally, the machine's performance and appearance also receive upgrades through the process.
Rebuilding equipment comes with several advantages. First, you can more dramatically extend the equipment's life compared to only making repairs on individual components. Second, rebuilding instead of replacing lets you bypass the depreciation incurred by purchasing new equipment. Third, choosing this option may allow you to upgrade some of the outdated technology to improve performance. Lastly, rebuilding older equipment improves its value when you resell it.
Rebuilding is not always advantageous, though. In some cases, you may prefer to replace or repair. For instance, while rebuilding is cheaper than replacing heavy equipment, it costs much more than repairing. Therefore, if you don't have multiple issues with your machine, rebuilding may waste money. Also, rebuilding can take much more time than repairing, meaning you will need to plan for having the equipment out of service.
Lastly, you must be wary of where you get your equipment rebuilt. If you have Cat® equipment, always choose a Cat Certified rebuild to ensure the quality of both the process and replacement components. Our certified rebuilding process includes 350 tests and replacement of over 7,000 parts to ensure your rebuilt Cat equipment has a like-new performance.
When to Replace Heavy Equipment
The last option you should consider is replacing equipment. This is the most expensive choice though depending on the level of wear on your existing equipment, it may be your best option. First, use a repair or replace equipment calculation to figure out numbers such as your owning and operating costs.
The owning cost reflects the sum of the equipment's purchase price, taxes, and financing minus the resell or scrap value. Operating costs equal the total of the equipment's maintenance, fuel, service, and labor costs over its full life span. When the owning costs are lower than operating expenses, you may want to consider replacing the equipment because you will waste money making constant repairs.
If you decide the time for when to replace a piece of equipment is close, you will enjoy the benefits of purchasing the latest technology for your fleet. Additionally, you will save on maintenance and repair costs since new equipment has fewer problems. Any repairs you do need may have warranty coverage. Lastly, your new equipment will have the longest life span compared to rebuilt or repaired machinery.
Though replacing equipment provides your fleet with an upgrade, this requires the biggest investment. Plus, new equipment will quickly depreciate. You may avoid this issue by purchasing used machines with a lower depreciation rate. Finally, you will need to pay for taxes and financing of any replacement machinery you invest in.
Choosing to repair, rebuild, or replace a piece of heavy equipment is a vital decision that any fleet manager or construction equipment owner needs to make. With planning and asking the right questions, your decision will save your company money and restore operations and equipment performance.
Whatever type of service you need, let us know at Blanchard Machinery Company by phoning us at 844.252.6242 or contacting us online. With locations throughout South Carolina, we have a site near you that can provide your operations with services for repairing, rebuilding, or purchasing heavy machinery. Save money and have equipment that will perform as required for your tasks with our help.