Anyone in the construction industry can tell you how much work and money goes into keeping their heavy equipment in tip top shape. Because of the ups and downs in the industry, deciding whether to repair broken down equipment or to simply replace it, is not such an easy decision. There are many factors that go into making that decision. Here are a few ideas to get you in the right direction:
Is your equipment paid off? One of the most important factors to consider is whether or not you have paid off your equipment. If it's paid off then it won't hurt too bad to set it aside for a while and rent something else until you have the cash flow to repair it. If it's not paid off, then the hit will be worse if you decide to wait because then you're paying for the equipment and the rental. If you're still making payments on it, you would most likely be better off fixing it so you can afford the payments, even if that means taking out a business loan.
How old is your equipment? A lot of heavy construction equipment will last quite a few years if it's cared for properly. But this doesn't mean you should hold onto a piece forever, even if it holds sentimental value. Each piece will be different, but take an honest inventory and look at the efficiency of your machine. According to constructionequipment.com, they can last anywhere from 5-10 years depending on the type of equipment and how well it's taken care of. When making this decision you should also look at the technological advances that have been made since you bought your equipment and decide if the upgrades would be worth the replacement.
Is your old equipment slowing you down? Take a long hard look at the efficiency of your current machine. Is it running at the same capacity it was last year? Could you be doing jobs more efficiently and in less time, leaving you more time to take on additional jobs? If your equipment has reached the point where it is hurting your business then it may be time to replace.
How much money will a new machine save you? Older machines not only need more costly repairs, but there are other places where buying a new machine would decrease your expenses. Older machines are generally less fuel-efficient. They also require more regular maintenance to ensure they continue working properly. Make sure that if you decide to repair the machine you have that you understand the costs that you will incur down the road.
Deciding whether to repair or replace your heavy duty construction equipment is not an easy decision, but these questions provide a guide to get you in the right direction.
Contact a commercial fleet repair company for more information and assistance.