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Owning & Operating Costs

Owning and Operating Costs

November 10, 2010 |

Owning & Operating Costs

Track loaders

A multi-purpose machine with low lifetime costs and plenty to recommend it

By Tom Jackson

How do you cost out a multi-purpose machine? As one or three?

Dozing is just one of the many applications a track loader can tackle.

“Its hard to measure productivity on a track loader because of all the things it can do,” says Ken Nebergall, product sales engineer, track-type tractors and track loaders at Caterpillar. “It complements other machines.”

“These things make money because they’re versatile,” says Sam Meeker, product application specialist for track-type tractors and track loaders at Caterpillar. “It’s not how much this one machine can make you, but how much more efficient it can make your entire fleet. You need to take a system-wide view of profitability. Track loaders can move dirt more efficiently at a lower cost than a lot of other products, but there are a lot of newer contractors out there who aren’t as familiar with what a track loader can do as much as the older generation. For example, compared to a wheel loader, you can extend your worktime in bad weather because of the track-type undercarriage.”

Specing a track loader

To get a handle on what it costs to own and run a track loader, Nebergall and Meeker suggested we study a Caterpillar 963D model, the most popular of Cat’s three models. “The 953s sell more into lighter construction, some basement digging and housing construction,” Sam says. “The 973 is more focused on the industrial market – waste applications and demolition. The 963 is a good all-around, mid-size track loader that gets put into a lot of different applications.”

Armed with its bucket, the track loader serves as a heavy duty wheel loader.

The standard unit today comes with AC and an enclosed cab. With so much emphasis on operator comfort, noise, cleanliness, productivity and safety, Cat doesn’t spec an open ROPS design for these machines, Meeker says. Options include a V-lever or joystick steering controls, ripper, a quick coupler, a multipurpose or 4-in-1 bucket, and 18- or 31-inch track shoes (standard is 22 inches). “Most of the machines go out pretty well loaded with options,” he says.

We put a ballpark figure of $260,000 for a well equipped track loader into our O&O cost calculations. Just keep in mind that this is a generalized estimate of the list price and we’re using it here for discussion purposes only. List prices for the 963D range from $260,000 to $300,000, depending on guarding and options. Consult with a dealer to get a more accurate figure for the machine speced the way you want it. We’re also omitting financing and insurance costs in our calculations, so be sure you add those back into any calculations you do.

Varied lifecycles

Most production customers, those in the landfill, steel mill and other high-hours applications, will hold onto their track loaders eight to 10 years before trading them in, says Meeker, putting 2,000 to 3,000 hours on them in a year. A general contractor, earthmover, pipeline or utility crew may keep them up to 15 years with multiple rebuilds on major components, but log fewer hours per year.

The undercarriage is always a major cost consideration. In harsh applications it may need rebuilding after 2,000 to 3,000 hours. In less abrasive or destructive conditions the undercarriage may last 6,000 to 7,000 hours between rebuilds. Also, depending on the application, either the SystemOne track or the traditional sealed and lubricated track can be ordered to minimize the undercarriage costs.