Refurbish or Rebuild—Cost Effective Alternatives

March 20, 2009 – Stretching and conserving resources as far as possible is a big part of the game plan anytime, but it is imperative in the current economy. With dollars tight, almost everyone is delaying new purchases and looking for ways to get the most out what they have without compromising productivity and safety. Looking to extend equipment life rather than buying new has become a valuable strategy.

As evidence on the consumer side, I recently read an article online about how the auto repair industry is thriving in this economy. One of the repair shop owners who was interviewed noted that his current customers are willing to choose a comparatively expensive service, like an engine overhaul or replacement, instead of buying a new car. AutoZone, the national chain of auto parts stores, reported a second-quarter profit increase of 8.6 percent in its last quarterly report, as car owners and mechanics increase spending on automotive parts and supplies for used vehicles. In addition, CNW Marketing Research reported that the volume of used cars sold through dealers rose 3.1 percent in February compared to last year while sales of new cars have fallen steeply

Repair, rebuild, reuse—it has a familiar ring. When budget constraints can’t support the cost of new equipment, retrofitting or rebuilding can be a good solution.
And, judging from information I’ve received over the last couple of months, equipment manufacturers are in a similar frame of mind. A number of them are promoting their rebuild and refurbishment services along with other support options for lifting equipment. These offerings come at a time when many companies are working to preserve their aging fleets rather than replace them

For example, Morris Material Handling, Oak Creek, Wis., is offering life-extending rebuild and overhaul services for vital crane components affected by age and usage. Even with the most diligent maintenance, long hours and variable workloads can cause wear and tear on vital crane components, which is why the company is providing a cost-effective service for overhead crane owners to rebuild or overhaul the components of expended cranes. But what about rare parts that are no longer manufactured or cannot be located? Morris Material Handling’s rebuild service has that covered. Electrical components, switches, controls, relays, and other components can be built to order, including those hard to find parts.

For mobile equipment, aerial work platform manufacturers are taking a similar approach to rebuilding and refurbishing used equipment. In March, Snorkel International, Elwood, Kan., introduced a comprehensive equipment refurbishment program for its aerial work platforms and, in response to customer demand, its boom lift rebuild program is now available in two tiers. The bronze package provides a multi-point safety inspection and component replacements to ensure the machine continues to meet or exceed ANSI operational standards. The gold level service contains the same content as the bronze package plus an extended safety inspection, sheet metal repair, and a new paint job. Both packages are backed by a warranty.

Terex Aerial Work Platforms, Redmond, Wash., is taking a holistic approach to machine maintenance and repair with its recently launched Genie 360° program, a one-stop-shop for support services that includes refurbishing, used equipment, field and factory support, training, parts, and warranties. To help Genie aerial work platform owners get the most out of their equipment, the company offers restoration services ranging from paint jobs to complete refurbishing. In addition to cost savings, equipment refurbishment is also more environmentally friendly because it keeps equipment in service rather than sending it to the scrap yard

The pundits say that harsh economic times present opportunities for those companies that can deal with short term difficulties and position themselves to be out ahead of the pack when the situation starts to improve. A return on the investment analysis may show that rebuilding or refurbishing lifting equipment to enhance its performance, reliability, and safety can be more substantial than buying new equipment

Sounds like good economic sense to me.