Heavy Equipment- Hidden Costs You Should Know Before You Buy!

With the steady increase in construction projects nationwide year after year, it’s no wonder the average price of the typical piece of heavy equipment is over $135,000. Let’s face it; we wouldn’t be able to get our jobs done if we didn’t have these behemoths available. But there are some hidden costs within their benefits.

Technology –

The technology used in heavy equipment is far beyond anything we have seen in the past and the costs to hire someone to operate a particular piece of equipment is skyrocketing. The national average for a heavy equipment operator is in the $60,000 range.

Maintenance –

Powerful heavy equipment is useless if there is no around to fix it. Working with heavy equipment is no easy task. If your company has purchased some type of machinery that has no maintenance agreement included, one major repair jobsite can wipe out the profit you had built into the project.

Theft –

Every year, millions of dollars worth of heavy equipment is stolen from the job site. Heavy equipment is tempting for thieves. The stolen heavy equipment is either parted out or taken to another area where it is sold or used by another business.

Underutilization –

When heavy equipment is underutilized your costs of acquisition skyrocket and your loss in value is occurring unnecessarily. Heavy equipment is not a cheap undertaking and you should find ways to maximize the value of your machinery. One thing to consider is renting or leasing your equipment when it is idle.

Worker injury –

Construction equipment is inherently dangerous to work around, especially for employees on foot. While heavy equipment is being operated, potentially dangerous materials may be present, electric circuits may be live, flammable or noxious liquids or gases and other potential dangers will exist. How are you prepared for these events should one occur? Remember: The best policy around heavy equipment is to take no chances.

As you see there are other things you need to consider as your fleet of heavy construction equipment grows and there are no easy answers. Talk to others in your area about how they manage their inventory and how they maintain, operate, move, and utilize their equipment.