One thing all businesses that use heavy equipment have in common is a commitment to maximizing the value of their equipment. Heavy equipment does important work, keeps production running, and impacts a business’s bottom line and overall efficiency. Anyone who owns or manages heavy equipment faces the decision of whether to refurbish, repair, or simply replace the equipment. Typically, “replace” means buying a new or used machine. A refurbishment involves replacing all major and most minor parts of the machine. Calibration and setup adjustments are also made, where applicable. The finished product is a brand new, upgraded version of your machine that will run and perform like new.
Is the repair covered under warranty?
Anyone responsible for the profitability of a heavy machinery operation should take the time to consider the following when deciding to repair, refurbish, or replace heavy equipment. Before deciding to repair or replace a heavy equipment piece, always verify the warranty status of the machine. The warranty should cover the majority of your equipment’s maintenance costs for the first year or more. If your supplier does not offer a solid warranty, consider switching suppliers. Warranties are an important value-added component to any equipment purchase, but especially so for heavy equipment.
Pros and Cons Influence Choices
As every organization faces their own equipment decisions, understanding the pros and cons of each option will help them gain a clear understanding of which option is best for their business and applications.
1.Replacement for new equipment
Pros:
- Latest technology
- Longest lifespan
- Comfort and safety
- Highest efficiency
- Low maintenance costs
- Increased capacity
Cons:
- Highest expense
- May require a learning curve
- Long-term commitment
- New payments
- Warranty obligations
- Taxes
2.Replacement for used equipment
Pros:
- Latest technology
- Lower cost than new equipment
- Low usable hours
- Lower depreciation than new equipment
- Higher capacity
- Possible price discounts
Cons:
- Unknown history
- Quality standards may be different
- Shorter lifespan than new equipment
- Requires significant cash outlay
- Warranty may not be included
- Taxes
3.Refurbishment of existing equipment
Pros:
- Overhaul can eliminate problems
- Get a like-new equipment for less
- Avoid the pain of depreciation
- Long lifespan
- Avoid selling/trading
- Increase equipment value
Cons:
- Longer lead times/downtime
- Not all technology can be upgraded
- Expensive
- Service/manufacturing quality varies
4.Repair existing equipment
Pros:
- Quickest solution to get back up and running
- Lowest cost
- No depreciation
- Keep familiar machines
- Option to increase power and strength
- Easiest short-term fix
Cons:
- Shortest life expectancy
- Parts may be hard to find
- Technology cannot be modernized
- Lead times may be long
- Repairs may reveal other problems
- No way to add or enhance capacity
Brand and dealers are critical
Deciding whether to refurbish or replace construction equipment or other heavy machinery also depends on factors such as its brand, how it is used, the dealer who repairs or sells it, and the environment in which it works.
Certified Construction Equipment Rebuilds provide customers with peace of mind knowing that all major components are inspected and updated or replaced, including:
- Drive Train
- Engine
- Engine Control Module
- Pumps (Fuel, Oil and Water)
- Transmission
This comprehensive service includes services such as hydraulic overhaul and improvement, exterior painting and cab amenities. It is important to note that standards vary for heavy equipment and its sellers, as with most products and services.
Often, the successful implementation of a repair, rebuild or replacement project depends on choosing or developing a good relationship with a trusted equipment professional. For example, Hyunkook Machinery offers three levels of rebuild services, including a certified “to the frame” rebuild service that completely rebuilds all equipment to make it look like new.
Working with the Professionals
Hyunkook Machinery offers advantages to all customers with its extensive and detailed knowledge of a wide range of machinery and its extensive inventory.
We apply the knowledge, skills and passion of each employee to meet the needs of our customers and become a valuable collective resource. We are an industry leader by supporting businesses, sharing knowledge and helping solve problems, including big decisions involving heavy equipment. Visit us anytime, or contact us anytime to let us know how we can help!