Tag: equipment costs

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Rule 1: Skid steer O&O costs

Based on a Case 430/440 model, 1700 to 2200 pound operating load, 2007 model, 4 year ownership/depreciation, 750 hours of use per year.   Do the math Unit costs are a great analytical tool. Take your machine O&O costs per hour, apply that to how many hours it takes to move X amount of dirt, […]

November 18, 2013

Business

3 rules for calculating and managing skid steer Owning & Operating costs

People who work with big equipment have a saying: “You can be going broke in this business and not know it for six months.” And the one cost that can be very hard to gauge, if you’re a small contractor or new to this business, is the owning and operating cost of your equipment. To […]

November 18, 2013

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Rule 2: Skid steer O&O costs

Managing operating costs Your operator is always going to be your biggest expense. With that in mind, here are a few ways to lessen that expense. Invest in training for productivity improvements Enclosed cabs, newer equipment help retain quality employees and keep them productive. Match the machine capabilities to the job. You don’t want an […]

November 18, 2013

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Rule 3: Skid steer O&O costs

Money never sleeps. If it isn’t making you money, it’s costing you money. If you buy stock in a company and after a few years it quits growing or paying dividends, you get rid of it. Right? The same is true of equipment. Letting equipment sit idle is like stashing money under a mattress. That’s […]

November 18, 2013

Equipment

Study: Hybrid construction equipment emits more harmful pollutants than diesel-only machines

Researchers at the University of California, Riverside, have concluded that while hybrid construction equipment certainly reduces fuel consumption, they are still worse for the environment due to increased harmful emissions. The scientists deployed 10 hybrid Caterpillar D7E bulldozers and six hybrid Komatsu HB215LC-1 excavators at six different jobsites in California. Both machines were tested for […]

October 23, 2013

Business

At GIE 2013, Tom Jackson to host session on the secrets of equipment owning and operating costs

If you happen to be going to the GIE+Expo next week in Louisville, Kentucky, stop by at the show’s new Friday breakfast workshop, 7:30 to 9:15 a.m, Room C-108. That’s where I’ll be hosting a session on “Calculating Your Equipment’s Owning and Operating Costs.” Why O&O costs? Because in 14 years of writing about construction […]

October 21, 2013

Construction Equipment

74 tips for reducing equipment costs (56-74)

Below are my final tips for squeezing those extra dollars out of your equipment operation. You can check out the previous posts by clicking here. 56: Use Failure Mode and Effects Analysis (FMEA) Inspection helps to detect early signs of changes in condition—a warning of impending failure.  But when to examine and what to examine […]

September 19, 2013

Construction Equipment

74 tips for reducing equipment costs (46-55)

Last week, we hit the halfway point in this series of 74 tips for reducing your equipment costs. Here is the next set of tips: 46: Learn more about MRO Maintenance, Repair and Overhaul is the science of inventory control applied to maintenance spares.  Rigorous adherence to inventory control process is a science… not an […]

August 30, 2013

Construction Equipment

74 tips for reducing equipment costs (21-30)

In my last post covering equipment cost cutting tips 11-20, I looked at eliminating buddy jobs, cutting down emergency work and reducing engine idling.  Here are cost-saving strategies 21-30: 21: Manage omissions Omissions can create common failures that affect numerous downstream components. Omissions can lie concealed or dormant until they trigger events that cause an […]

August 16, 2013

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74 tips for reducing equipment costs (11-20)

In my first post covering equipment cost-cutting tips 1-10, I addressed several equipment cost cutting basics, including the impact of faithfully using a computerized maintenance management system. Here are cost-cutting strategies 11-20:   11: Eliminate “buddy jobs” I have seen unnecessary use of two-man jobs many times while analyzing maintenance operations.  If they aren’t really […]

August 5, 2013

Business

74 tips for reducing equipment costs (1-10)

One thing I learned long ago was the bottom-line impact of reducing costs.  I don’t mean cutting costs—I mean reducing costs.  There is a significant difference. One brings immediate relief to the bottom-line while the other brings more sustainable results. Over the next several posts, I will share 74 tips to help you reduce costs. […]

July 31, 2013

Construction Equipment

Benchmarking: Where are your equipment costs relative to others?

You need to find out where your equipment costs are compared with others in your industry. One key way to do this is through benchmarking. Do not discount someone else’s success. I have heard many client employees say, “Well, sure they can do that. They’re bigger than us… they don’t have the seasonal restrictions we do… […]

July 30, 2013