Cost management is a vital component for construction businesses and contractors. Equipment expenses make up a significant portion of monthly and annual costs, whether you purchase, finance or rent. By researching expected costs, you can make more informed decisions about your budget.

Equipment expenses vary depending on machine type, insurance requirements, maintenance needs, the type of work being performed and other related factors. Estimating construction equipment costs helps you maintain profitability and prepare for success. Learn more about how to estimate equipment costs in construction with this guide.

What to Consider When Calculating Equipment Costs

Many factors impact heavy equipment prices. When purchasing new equipment, you encounter both fixed and variable costs. Fixed prices are upfront and typically occur once, while variable prices change and can happen multiple times. Learning more about these factors helps you estimate the most accurate expected expenses.

1. Average Equipment Prices

The first fixed cost for equipment is its base price. Heavy equipment costs vary depending on several factors:

• Model: Manufacturers frequently introduce new models with new features and capabilities. For instance, new models can incorporate advanced technology that allows for more efficiency and accuracy. Older models might cost less than new ones, depending on their condition and features.
• Size: Construction equipment is available in many sizes, depending on the model’s load capacity, power, weight and other dimensions. Larger sizes often cost more than smaller sizes due to their additional capability.
• Condition: You can find heavy machinery in varying conditions, depending on their age and usage levels. Most equipment providers carry both new and used models and can give comprehensive details about the model’s history. Used options usually have lower prices than new models but might have more wear.

You should also factor in resale value. Many contractors or businesses purchase equipment and resell it later when it no longer meets their needs. Both new and used models can have high resale values if the equipment receives proper maintenance and care.

Different equipment types vary in price. You can either pay the full cost upfront or choose a financing option that spreads out your payments over months or years.Some construction teams prefer to rent equipment, which makes it easier to control overhead expenses and calculate equipment costs per hour or day.

Below are a few of the most popular heavy equipment types and their average costs:

• Excavators: Hydraulic excavators are popular and versatile tools, able to dig and move significant amounts of earth. They’re available in many sizes and specifications and therefore come in a wide range of prices. Compact sizes suit more precise and smaller applications and typically cost between $25,000 and $90,000. Standard-sized and larger-sized excavators can cost between $100,000 and $850,000.
• Dozers: Dozers are powerful pieces of equipment available in compact and large sizes. They are useful for various applications, from earthmoving to site preparation. Smaller models can cost about $40,000, while larger options can sell for over $500,000.
• Skid steers: Skid steers and compact track loaders are versatile options for digging, lifting and other applications. They have various sizes, attachments and features, making their costs vary. A new, standard-sized skid steer can range from $17,000 to well over $50,000.

2. Insurance Costs

Insurance is an essential variable cost for equipment purchases. Insurance provides coverage for damages, theft, breakdowns and other instances that impede a construction site’s efficiency. Depending on your insurance plan, the provider might cover part or all of the related fees. Other insurance options provide reimbursements for business interruptions that occur during machine downtime.

Insurance costs vary depending on the provider, equipment cost, construction site specifications and other factors. Insurance providers can offer specific quotes for monthly or annual rates. Safety also plays an important role, as your rate might increase if you experience frequent accidents.

3. Repair Costs

Another variable expense is the cost to repair your equipment. Regularly used equipment is susceptible to wear and can sustain damage over time. It’s important to repair equipment quickly to maintain its condition and keep your construction site working safely and at peak efficiency.

It can be challenging to estimate annual repair costs because they vary in severity and frequency. The more you use equipment, the more wear it endures. The environmental conditions you typically work in directly impact machine wear and tear, and especially harsh job site conditions can result in increased repair needs.

Repairs can consist of a single part breaking or an entire machine breakdown, leading to a wide difference in potential costs. Machines in poor condition might also need repairs more frequently than new machines.

Common heavy equipment repairs include:

• Engine: Basic repairs, like replacing a sensor or gaskets, can cost a few hundred dollars or upwards of a couple thousand dollars. Rebuilding or overhauling an engine can cost anywhere from a few grand to more than $20,000.
• Hydraulic system: Minor repairs, such as swapping out a seal or hose, can range between a couple hundred to a couple thousand dollars. More serious hydraulic repairs can cost upwards of $10,000.
• Structural: The average costs of structural damage will vary depending on severity and location. Extensive repairs can potentially cost tens of thousands of dollars.

4. Preventative Maintenance Costs

Regular maintenance is vital for heavy equipment and helps you identify potential problems before they grow into more significant and costly issues. Tasks like oil changes, wire replacements and track adjustments are essential for efficient operation and machine life span.

Even though proper maintenance can provide significant cost savings, these tasks still add to your equipment costs. Many businesses and contractors partner with providers for specialized maintenance plans, which can have monthly or annual fees. However, these costs even out — maintenance helps you increase equipment life spans and boost overall productivity, resulting in long-term gains.

5. Fuel Costs

Fuel costs are another significant consideration for equipment owners, contributing between 30% to 50% of overall expenses. Your equipment’s fuel use depends on many factors, making your overall cost vary each month. For instance, fuel costs are based on:

• Fuel efficiency: The rate your equipment consumes fuel varies by machine and work type. Certain models might consume fuel faster than others, causing you to spend more. Many other features impact fuel efficiency, including operating techniques, equipment application or onboard technology.
• Diesel fuel value: Fuel prices change constantly, which can make your monthly costs unpredictable. Most heavy equipment runs on diesel fuel, and its price differs depending on market availability, labor costs, taxes and other factors.

Each machine type consumes fuel at a different rate, and the cost of fuel can change quickly, making it harder to estimate costs.

6. Work Type and Conditions

The type of work you typically complete will also impact equipment costs. Consider the strain your common applications and job site conditions can have on your fleet. For example, a wheel loader used primarily for moving sod on landscaping projects will likely have lower operating costs and fewer repair needs than a loader used for hauling boulders in rock quarries.

Your unique project requirements directly influence how hard your equipment must work and how efficiently it can complete tasks, which will ultimately affect your ownership costs.

Contact Warren CAT for Deals on Construction Equipment

The more you understand typical heavy equipment expenses, the better you can prepare your budget for upcoming projects. In addition to upfront costs, you need to manage ongoing insurance, maintenance and fuel fees.

Warren CAT offers a wide range of new, used and rental heavy equipment to meet project requirements of any size. We help you find the best fit from our broad inventory of reliable and heavy-duty equipment. We also offer many financing options that make payment processes flexible and transparent.

Contact Warren CAT today to learn more about our available construction equipment.

Heavy equipment is a business investment that needs to be maximized for businesses to stay profitable and productive. Properly maintaining your equipment is vital to protecting your asset’s value and keeping tight financial control over your operating costs.

Generally, equipment owners should expect to budget 2-6% of their total replacement asset value (RAV) as their routine maintenance fund. This formula called %RAV is flexible depending on the equipment type and the operating conditions involved in your work. The harsher the conditions and more specialized the equipment, the higher the %RAV should be.

To avoid overspending on unnecessary maintenance costs, equipment owners should appropriately budget for ongoing service and repairs and take active steps to control and reduce maintenance costs. Our guide to equipment maintenance covers some of the top ways equipment owners can control maintenance costs, including investing in preventative maintenance programs (also called “preventive” maintenance programs).

Top Tips for Reducing Maintenance Costs

Equipment owners are constantly managing their business expenses, trying to lower operating costs and maximize profits. While certain business expenses are fixed, others are variable and controllable with the right practices.

Heavy equipment maintenance costs are variable expenses that can make or break equipment ownership, depending on how you handle maintenance. Taking a proactive approach with preventative equipment maintenance can help keep costs steady and reduce unexpected repairs.

Follow the below tips to reduce maintenance costs to help manage equipment operating expenses:

1. Conduct Daily Inspections

Routine inspections are the most essential way to detect and prevent maintenance and repair issues in equipment. Daily inspections can help you save on sudden repair costs and unproductive downtime that delays projects.

It’s important for equipment operators to get into the habit of conducting daily inspections by following maintenance checklists. Pre-operation inspections ensure equipment is safe enough to operate, while post-operation inspections identify any new issues that may arise while the machine is at work.

Daily equipment inspections should include checking the following:

• Fluid levels, including fuel and oil
• Signs of damage, leaks or cracks
• Brakes and emergency stopping system
• Steering system
• Tire, tread or track condition, including tire air pressure
• Mirrors, windshield and glass
• Lights and horn
• Seatbelts and safety devices

The above list is not exhaustive, and you should always consult your Operation and Maintenance Manual (OMM) for detailed inspection checklists relevant to your machine.

2. Keep Equipment Clean

One of the simplest ways to maintain your equipment and prevent expensive repairs is to keep up with routine cleanings. Clean equipment operates more efficiently, lasts longer, retains its value longer and undergoes fewer repairs.

Some keys to keeping equipment clean include:

• Wiping away built-up film from controls and panels
• Removing caked-on mud and grime from tracks, drive gears and tires
• Correctly storing your equipment and following winterizing best practices
• Cleaning or replacing filters, grilles and vents
• Checking seals around electrical components

Heavy construction equipment is regularly exposed to harsh conditions, making it susceptible to dirt and contamination. A machine’s multiple components and intricate systems can begin to degrade if they’re not kept clean. Additionally, repetitive exposure to the elements, including wind, rain and snow, can damage equipment components and the machine’s structure, causing rust and paint chips that are expensive to fix.

3. Use Genuine OEM Parts

When your equipment needs parts replacements, it’s important to choose high-quality engine components certified by the manufacturer. Original Equipment Manufacturer (OEM) parts guarantee high-quality performance and dependability, extending the service life of your machine.

Some of the critical components to source from the manufacturer as genuine parts include:

• Pumps
• Fuel injectors
• Starters and alternators
• Ignition systems
• Gears, drives and pulleys
• Hydraulic components

Using genuine parts ensures that you maintain warranty coverage and that high-wear components remain functional and reliable for as many operating hours as possible.

As an alternative to installing new OEM parts, such as Cat^® genuine parts, you can also source certified remanufactured parts. Cat remanufactured parts adhere to strict quality control guidelines, providing you with an affordable parts replacement option to help reduce your maintenance costs.

4. Choose the Right Fluids

Managing heavy equipment fluids is a vital practice of proper preventive maintenance. Using the right engine oil, hydraulic fluid and coolant can help extend a machine’s service life, protect the equipment’s performance and reduce the risk of premature wear and unexpected repairs.

Always check your OMM to know which type of fluids to use and review other pertinent information, such as:

• Filter type
• Fluid capacities
• Fluid change intervals

In addition to choosing the right fluids and changing them at the proper intervals, you should also properly store fluids to prevent contamination and regularly check stored fluids for signs of sediment.

5. Perform a Routine Fluid Analysis

Beyond using the right fluids required for equipment performance, it’s also critical to routinely analyze fluids to detect potential problems. Fluid analysis allows you to gain insights from oil, coolant and fuel samples collected during service intervals.

During a fluid analysis, technicians look for issues like:

• Oil viscosity
• Particle counts
• Microbial growth
• Water content
• pH levels
• Odor, foam or solids

The above is not an exhaustive list of testing items. Technicians follow a detailed analysis plan, checking each type of fluid for specific health indicators that pertain to the particular type of fluid. Technicians then provide equipment owners with a comprehensive report of their equipment’s fluid health so they can have advanced insights into equipment condition and any unseen issues.

By routinely analyzing your equipment’s fluids, you can learn the common types of issues your working conditions cause, letting you take cautionary and preventative steps to maintain equipment and reduce the costs of future repairs.

Cat’s S·O·S^℠ Fluid Analysis service uses advanced analytical technology to gain an accurate picture of fluid health and provide clear instructions moving forward to protect your equipment.

6. Maintain Detailed Maintenance Records

For equipment owners looking for better control over machine operating and maintenance costs, adopting solid record-keeping habits is critical.

Proper maintenance record-keeping helps owners:

• Plan for future maintenance and repair issues.
• Prevent costly downtime.
• Prove the value of the machine’s resale value.
• Protect the asset under potential warranty claims.
• Support businesses facing workers’ compensation claims.

Equipment maintenance records keep track of pertinent details including:

• Equipment type, location and operator
• When maintenance was performed
• What type of maintenance action was taken
• Who serviced the machine and where
• Maintenance outcomes
• Total maintenance costs

By keeping track of this critical information, owners can analyze their maintenance data to predict future issues, more accurately budget for maintenance and repair needs and prevent serious breakdowns.

7. Invest in Operator Training

In many cases, what makes the difference between a long-lasting machine that retains its value and one that doesn’t is how the equipment has been operated throughout its lifecycle. Equipment operator training is a critical investment that protects your asset’s value, prevents unnecessary repairs and reduces the risk of accidents.

It’s important that operators are properly educated on the machine’s specifications, including the types of issues to look for and how to inspect components. A well-trained operator will know what to look for before and after operating the equipment, providing valuable insight into the machine’s health status.

Equipment owners should also view operator training as an ongoing process. Over time, skills can wane, and operators can become complacent. Keeping safe operating practices at the forefront can help ensure operators always prioritize safety and that inspections to protect the machine from breakdowns are regularly completed. It is important to ensure operators always have easy access to an accurate operator’s manual.

8. Operate Equipment Properly

Knowing how to properly operate equipment reduces unnecessary wear and tear on the machine. Improperly operating a machine, such as using equipment that’s not right for the job or overloading a machine that is too small, adds undue strain on the equipment components, increases the risk of incidents and can lead to breakdowns or systems failures.

Additionally, following proper safety protocols can also help reduce the risk of incidents that cause damage to the machine and surrounding structures. Some safety topics all operators should be familiar with include:

• Identifying surrounding hazards, such as overhead powerlines, slopes and nearby vehicles or buildings
• Becoming familiar with equipment safety features and how to safely maneuver the machine
• Knowing how to properly load and lift materials, including types of materials and weight capacities

9. Understand Equipment Warranty

When budgeting for maintenance costs, keep your warranty policy at hand. Equipment protection plans are available to protect owners from being financially responsible for parts failures that are the manufacturer’s responsibility.

To keep the machine’s warranty active, owners must make reasonable efforts to maintain their equipment following the prescribed maintenance intervals outlined in the OMM. Be sure to thoroughly read and understand your warranty and know what’s covered and what isn’t so you can plan your maintenance program accordingly.

Additionally, investing in an extended warranty policy on some parts, particularly engine components, can help reduce maintenance costs in the long run.

10. Leverage Telematics Technology

Take your equipment maintenance management to the next level with telematics. Using a system of onboard sensors, equipment telematics collects valuable data on machine usage and health that can be analyzed for superior insights.

Telematics can help with equipment maintenance in the following ways:

• Automate maintenance schedules based on data collected from equipment sensors.
• Link operator behavior and idling habits to wear and tear concerns.
• Receive instant notifications on diagnostic codes indicating a time-sensitive issue.

Cat VisionLink^® is the answer to equipment telematics, providing Cat equipment owners with insight into equipment efficiency, productivity and maintenance needs. Using a smart technology system, VisionLink presents owners with a streamlined way to:

• Routinely check equipment health.
• Save time and money on maintenance.
• Stay compliant with safe operating standards.

Learn more about VisionLink by contacting your representatives at Warren CAT.

11. Adhere to a Preventative Maintenance Program

The top way to save money on equipment maintenance costs is to develop and adhere to a preventative maintenance (PM) plan. By creating an ongoing maintenance schedule, you increase the likelihood of your equipment receiving optimal service required to extend component life and maximize equipment productivity and performance.

Using the manufacturer’s recommended service intervals, you can develop an ongoing maintenance calendar based on maintenance item categories. Know which types of maintenance actions to take on a daily, weekly, monthly, quarterly and annual basis, as well as which types of services to conduct after a set number of operating hours.

Thanks to services like Cat Customer Value Agreements, equipment owners can create customized plans that fit their budget and ensure they’re always on top of their equipment maintenance needs.

Benefits of Cat Customer Value Agreements

Whether you manage a single piece of equipment or an entire fleet, busy equipment owners want the most efficient, cost-effective way to manage their equipment maintenance needs. Following an intelligent, data-driven maintenance plan helps you reduce maintenance costs  and unnecessary downtime by focusing on just-in-time servicing needs informed by smart technology.

Cat Customer Value Agreements (CVAs) make equipment ownership hassle-free. Preventive maintenance plans are an integral part of the CVA, helping equipment owners maximize their investment, prolong the life of their assets and gain better financial control over their operating costs.

Some of the top benefits of CVAs include:

• Flexible and customizable coverage: The Cat CVA program is designed to be entirely flexible for equipment owners, providing a range of coverage options. With flexible financing, there’s a CVA solution for every scenario.
• Convenient equipment management: Equipment management is easy and convenient with a Cat CVA. Receive your genuine Cat parts delivered on time according to a predictive maintenance schedule. CVA equipment management services provide quick parts replacement turnaround and take care of the legal and safe disposal of old parts, including fluids and filters.
• Improved financial control: With simple monthly payments, equipment owners can maintain better financial control over operating costs. Knowing your monthly expenses ahead of time makes it easier to plan your business’ cash flow compared to financing an unexpected, inconvenient and costly breakdown.
• Long-term partnerships: With a Cat CVA, you’ll always have the peace of mind that a reliable team of experienced technicians is standing behind you and your investment. The long-term partnership offered by the Cat CVA helps you focus on your business and leave the maintenance and service to the experts.

With a CVA, equipment owners can choose from value-added services like:

• Preventive maintenance kits
• Oil and fluid changes and analysis
• Ongoing machine inspections
• Smart technology monitoring of equipment health parameters
• Predictive maintenance and repair

Equipment owners can choose from multiple CVA plans, selecting the one with the right coverage for their needs. Businesses with in-house technicians may choose limited plans, while equipment owners who outsource maintenance may prefer a more comprehensive CVA option.

Work with your dealer or contact a representative at Warren CAT today to learn more about the right CVA plan for your business.

Choose Warren CAT for Your Equipment Maintenance Needs

When you want expert advice on equipment maintenance, trust Warren CAT as your source for reliable, quality equipment service and repair. Whether you need standard preventive maintenance, machine repairs, equipment rebuilds or help installing genuine Cat parts, Warren CAT is your equipment maintenance solution in Oklahoma and West Texas.

Enquire about our customizable Cat Customer Value Agreements, mobile field service, emergency maintenance solutions and other options to help keep your equipment performing at peak condition. Call Warren CAT today at 866-292-7736, contact us online, or stop by one of our many Warren CAT locations offering complete sales, parts and service.

Business owners who use heavy machines inevitably end up spending time thinking about ways to reduce equipment costs. Regardless of the tasks at hand, the concern applies to all industries:

• Agriculture
• Defense
• Excavation/grading
• Forestry
• General construction
• Government
• Heavy construction
• Landscaping
• Mining
• Oil and gas
• Paving
• Power generation
• Quarrying
• Trucking
• Utilities
• Waste and recycling

The more you know the better, which makes data a big part of figuring out how to reduce equipment costs. Caterpillar® technology yields data to create benefits:

1. Streamline operations
2. Maximize productivity
3. Prolong equipment life
4. Boost resale value
5. Prevent unscheduled downtime and missed deadlines
6. Avoid dangerous accidents
7. Reduce potential liability
8. Make revenue predictable
9. Produce successful results
10. Keep people and machines productive
11. Create time for you
12. Discourage theft

Warren CAT offers many ways to gather facts about your equipment, because data remains a common theme among most of the tips for lowering your equipment operating costs.

Ways to Reduce Equipment Costs

Tip 1: Implement Cat® Equipment Management Services

Choose from three levels of service that use some combination of data, equipment, personnel and expertise to enable you to stay well-informed and run with optimal efficiency.

Inform

• Examine usage and functions
• Receive reports
• Define fault codes immediately
• Compare run times, both actual and ideal
• Observe service hours

Advise

• Receive professional fleet analysis and recommendations
• Analyze equipment condition
• Schedule and plan maintenance
• Identify training needs
• Avoid failure or delays in project timeline

Partner

• Track performance
• Do preventive maintenance
• Manage mixed fleets
• Maintain safety
• Perform inspections

There are basic, medium and maximum levels of support. For basic support, you may receive simple advice or instructions. Medium support may involve Caterpillar managing the big repairs and your company managing the smaller ones. Maximum support is when you leave it all to the professionals.

Manage

• Eliminate unplanned downtime
• Estimate operating and maintenance costs accurately
• Anticipate the life cycle of your machines
• Guarantee use of authentic Cat parts
• Gain confidence using world-class experts and technology

Tip 2: Prevent Theft With EM Services

The technology includes a satellite navigation system that tracks equipment in real time, making it much more likely you’ll find a stolen machine. The International Risk Management Institute says registration of big machines is not mandatory, and it estimates that only 15 percent of heavy equipment stolen is ever recovered.

Many Cat machines come with system-monitoring technology built in. Those that don’t, as well as other brands, can be retrofitted with EMS.

Tip 3: Employ ProductLink™ to Gather Data

Product Link is hardware embedded into Cat machines that delivers information about the health and condition of your machines, plus lets you see usage reports and stay connected to a vast dealer network. Working smarter empowers you to improve fleet management and the confidence of your crew, managers and clients.

Tip 4: Use VisionLink® Technology to See Assets in the Field

VisionLink becomes your eyes and brings you information about your equipment’s engine, systems, and equipment hours, diagnostic codes, location, and fuel and idle time. The system uses cellular/satellite technology to deliver data straight to your mobile phone or other device, with options for real-time, up-to-the-minute data. Caterpillar deliberately designs the transmitting antennae to be compact. This makes it easier to access when it needs an adjustment.

Tip 5: Dig Into the Service-Information Systems Network

The SIS Web instantly places a world of data at your fingertips from 17,000 Cat publications. You’ll be able to find technical specs, instructions for assembly or disassembly, guidelines for maintenance, and more.

Researching equipment takes a lot of time, but SIS simplifies the process of finding your answers. The SIS Web cuts risk and enhances productivity by offering solutions for managing personnel. It can generate a realistic schedule for your service technicians to prevent them from being either overloaded or idle.

Tip 6: Commit to Preventive Maintenance

As you seek ways to reduce equipment operating costs, there is probably no better tool than doing maintenance and service on a regular schedule, before something breaks or goes wrong. Many types of the Cat technology discussed here take guesswork completely out of the formula, using electronic alerts to prompt recommended service.

Tip 7: Let Your Dealer Monitor Fluids

The Cat S·O·S^? fluid analysis program involves your dealer checking and analyzing oil, coolant and hydraulic fluids for excessive wear, contamination, low levels and other conditions that may require corrective action to prevent damage or failure.

Tip 8: Inspect the Equipment Daily

Do a walk around and visual inspection of your equipment each day to detect leaks, smoke or unusual situations, plus take note of any substandard performance. You can share any data gathered with your dealer to enhance the monitoring of your equipment and prevent small issues from becoming big problems. Look for general wear and tear of the machine or its bucket and digging teeth, breaks or pits in the windshield, tire condition and even the smallest crack on the frame or where welds exist.

Tip 9: Do Small Maintenance Now to Prevent Big Repairs Later

Let the data and alerts enable you to catch adverse conditions and fix them before they cost you money or time. For example, change out an ill-fitting seal to make sure the machine doesn’t run low on a fluid or spring a big leak that leads to a major expense.

Tip 10: Train Operators in Best Practices

Monitor users’ day-to-day performance with the machine in order to identify and reinforce good practices as well as pinpoint areas for which additional training may be needed. You’ll avoid premature wear and lackluster performance, as well as extend the life of your machine by ensuring that it is used properly and not pushed beyond its capacity.

Tip 11: Gather and Store Copious Records

Collect and keep reports that tell you about your machines’ history, component life and operating costs to reveal trends. Those statistics will enable you to better and more accurately examine work flow and expenses plus maintain the machine’s resale value.

Tip 12: Monitor Basic Elements

Check the condition regularly of air and oil filters, grease, fittings and other components essential to operation, since these checks help reduce equipment operating costs. The concept is similar to how a clean air filter in a car will help it achieve better gas mileage.

Tip 13: Compare Cost of Onsite Maintenance vs. In-Shop Repairs

Have a qualified professional come to you for preventive maintenance rather than hauling your equipment to the shop after something breaks. Some owners presume house calls are way too expensive, but not when they prevent expensive repairs and the cost of transporting something that weighs several tons.

Tip 14: Use Checklists

Create and implement a maintenance plan and service checklists that site and job managers must initial. This step organizes service items and makes them predictable, keeps operators accountable and gives you proof at selling time that you’ve kept the machines in good condition.

Tip 15: Don’t Skimp on Quality

Let the professionals at Warren CAT provide service and parts so that you can be sure you’re getting top-notch quality. Cutting corners with inferior-quality parts or unqualified technicians actually costs more money over the long run when components don’t last as long as they should or bad service causes a breakdown. For example, hydraulic oil lubricates and protects moving parts and is an integral part of the power-transfer process, so you want it to be of high Cat quality, just like the machine is.

Tip 16: Maintain Contact With Your Dealer

Form and keep a close, trusting relationship with Warren CAT or your favorite dealer for when you need to borrow equipment while yours is being serviced. You can also do this to field test a machine you’re interested in buying or renting.

Tip 17: Establish a Communications Plan

Make sure all the people between you and your machine know exactly what to do and who to call in different situations. This may include equipment failure, job-site accidents or injuries, theft or damage, other unexpected problems or when something just doesn’t seem quite right. You save downtime and money when everyone knows precisely what to do and has all the resources they need to report an issue, including process charts as well as names and contact information.

Tip 18: Prepare for the Worst Before It Happens

Take time to make a contingency plan for all the worst-case scenarios you can imagine, then make that plan known to everyone. Thinking through such situations when you’re not in a frenzied, crisis mode will yield a much better result than when you’re forced to make decisions on the fly.

Tip 19: Form and Keep a Downtime Plan

Fill the normal lulls in production with tasks that need done but rarely warrant top priority, such as running errands and making deliveries; servicing and repairing equipment; delivering, picking up, re-arranging or staging materials at the job site for upcoming production days; completing paperwork such as schedules and forms for pending inspections; and training your workforce.

Tip 20: Keep Your Team Happy and Informed

Solicit feedback from the workforce to gauge what works well and what doesn’t, praise and reinforce good performance, and encourage and reward best practices. Show and tell your people how complacency affects productivity and profitability instead of having them inadvertently learn that problems are often rewarded with overtime or praise for fixing a problem fast.

Tip 21: Allow Time for Strategic Thinking

Schedule blocks of time to interpret your data, think of new ideas, research solutions, market your company, develop promotional materials and both study and stay ahead of the competition.

Tip 22: Examine and Optimize Idle Time

Devote resources to know how much time your equipment spends idling. Wasted fuel is wasted money, and unnecessary idling not only wears on your machine’s engine and chips away at warranty hours, it can also conflict with some states’ emissions laws.

Tip 23: Analyze Usage of the Entire Fleet

Identify and rectify overused or underused equipment to optimize operations across all your job sites. You want to avoid having any machine run more than it should or run only 20 percent of the workday. The objective is to use all machines to their full capacity, or somewhere close to it. Let Warren CAT do this for you or make your own charts, spreadsheets, calendars and other tracking tools in order to watch critical areas of the business.

Tip 24: Don’t Wait to Add Features

Calculate the savings you’ll realize with data features like ProductLink, VisionLink, EMSolutions and preventive maintenance plans before you say, “Oh, I’ll add that at a later date.” While you’re waiting until you have more time or money, the features could pay for themselves and yield substantial savings through optimized performance, less downtime and best efficiency.

Tip 25: Pay Less for Technology at Time of Purchase

Include data features at the time you buy a machine whenever possible, since it costs less to get them at the time of purchase than to add them on later.

Tip 26: Consider Rebuilt Parts

Look for remanufactured parts as a lower-cost option of comparable quality to new parts. Normally, they both have warranties and feature top quality, and are guaranteed to fit your specific machine perfectly.

Tip 27: Match Machine to Task

Spend time working the math to know you’re using the right-sized equipment for the job. Your bottom line suffers when you use an enormous machine for a small job and when you attempt to use a smaller machine best left to the ability of bigger equipment.

Tip 28: Investigate Options for Lease, Rental and Loaners

Compare the costs of renting, leasing or borrowing equipment against that of buying and/or of using equipment that’s oversized, undersized or not used regularly. These options save you the headache of selling equipment when it’s old, gain you the benefit of having newer equipment every few years, and save you money on transport and storage costs.

Tip 29: Understand Your Equipment Regeneration Needs

Study the limitations of your equipment and respect the fact that it needs to regenerate at regular intervals rather than ignoring it, which could lead to breakdowns, damage and expensive repair.

Tip 30: Pamper Your Undercarriage

Avoid misusing or abusing any equipment, but especially machines with tracks, since that multifaceted component comprises 50 percent of the maintenance and repair cost for equipment that includes them. Caterpillar designs its undercarriages with extra clearance, but adverse conditions will affect critical parts including links, rollers, seals, segments, pins, bushings, idlers and shoes.

Tip 31: Eliminate Waste

Analyze your fleet and use the data to compute the percentage of productive time – and profit – you stand to gain by purging waste like overtime, excessive idling, unnecessary usage, bad operator practices and other things that lose money.

Tip 32: Allow Plenty of Time

Build hours into the regular, everyday schedule for preventive maintenance and regular service. This way you won’t incur the extra expenses associated with deliveries or services made in the throes of an emergency or rush situation, as well as after hours or on a holiday weekend.

Tip 33: Live by the Work Order

Implement a system in which nothing happens without a work order, which not only gives you full control over what gets bought but also produces an accurate record of what was purchased, why it was purchased, who ordered it and when. In most situations, you won’t recall those details and if you do, they’re likely to be fuzzy.

Tip 34: Check the Manual

Follow the equipment manufacturer’s recommendations for usage, parts, fluids, maintenance and other procedures to ensure optimal efficiency and help machines last longer. Even if you think you know what your equipment needs, going by the manual will help in cutting costs on heavy equipment.

Tip 35: Compare Your Fleet’s Performance to Others

See how your equipment and machines stack up to comparable fleets locally, regionally and nationally, since this kind of data helps you obtain valuable benchmarks that can help in future analyses and decision making.

Knowledge is power, and there are many ways for you to gather data about your heavy equipment and apply it to yield improved profitability, better safety and a more efficient business. You can start acquiring that knowledge anytime by visiting Warren CAT online, as well as calling or visiting any of the dealerships throughout Texas and Oklahoma.

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