{"id":7539,"date":"2016-04-29T07:13:08","date_gmt":"2016-04-29T07:13:08","guid":{"rendered":"http:\/\/tractopart.com\/sp\/?p=7539"},"modified":"2016-04-28T20:31:38","modified_gmt":"2016-04-28T20:31:38","slug":"renters-and-buyers-keep-telehandlers-flying-high","status":"publish","type":"post","link":"https:\/\/tractopart.com\/sp\/renters-and-buyers-keep-telehandlers-flying-high\/","title":{"rendered":"RENTERS AND BUYERS KEEP TELEHANDLERS FLYING HIGH"},"content":{"rendered":"
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OEMs stay on top of their game as rental operations and fleets have some different requirements<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Telehandlers stand out among the mobile machines Construction Equipment<\/em> covers in that they are rented much more than owned (and may be spec\u2019d differently), but there are common threads among rental operation purchasers and contractor buyers that keep manufacturers on their toes.<\/p>\n

JCB reports that upward of 70 percent of all telehandler sales have gone into rental over the past 3 years. That figure includes both independent rental companies and dealer-owned rental fleets.<\/p>\n

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COST OF OWNERSHIP<\/h2>\n<\/td>\n<\/tr>\n

Size Class (MTons)<\/td>\nAvg. price<\/td>\nHourly rate*<\/td>\n<\/tr>\n
To 2.1<\/td>\n$58,850<\/td>\n$28.34<\/td>\n<\/tr>\n
2.2-2.70<\/td>\n$70,216<\/td>\n$29.37<\/td>\n<\/tr>\n
2.71-3.0<\/td>\n$85,018<\/td>\n$36.52<\/td>\n<\/tr>\n
3.1-3.5<\/td>\n$100,211<\/td>\n$44.46<\/td>\n<\/tr>\n
3.6-3.9<\/td>\n$105,464<\/td>\n$44.81<\/td>\n<\/tr>\n
4.0-4.4<\/td>\n$107,228<\/td>\n$41.40<\/td>\n<\/tr>\n
4.5-4.9<\/td>\n$126,289<\/td>\n$49.33<\/td>\n<\/tr>\n
5.0 and over<\/td>\n$185,499<\/td>\n$76.61<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*Hourly rate represents the monthly ownership costs divided by 176, plus operating cost. Unit prices used in this calculation: diesel fuel, $2.78 per gallon; mechanic\u2019s wage at $52.33 per hour; and money costs at 3.75 percent.
\nSource: EquipmentWatch.com<\/a><\/p><\/blockquote>\n

Caterpillar product application specialist Mike Peterson offers similar numbers. \u201cFor the North American market in any given year, the industry is approximately 80-90 percent rental and 10-20 percent retail,\u201d he says.<\/p>\n

\u201cThe telehandler market in North America remains strong and active even with the downturn in the gas and oil industry,\u201d says Steve Kiskunas, product manager, telescopic handlers, Manitou Americas. \u201cRental companies continue to replace equipment in their fleet to reduce the average age of their equipment following a hold on new equipment purchases during the economic downturn. This re-fleet process has continued over the last four years. We also see signs that construction activity overall will continue to be at a high level through 2016, which we expect will also support telescopic handler demand in rental and retail.\u201d<\/p>\n

Stuart Fox, JCB\u2019s material handling product manager, cites a possible downturn in rental operation purchasers.<\/p>\n

\u201cThe market is largely flat year over year, which should continue for 2016 with a good chance the rental market comes down as a result of mass replenishing of fleet over the past couple of years,\u201d Fox says.<\/p>\n

Pettibone\u2019s product manager for telehandlers, Bob Mayo, uses specs to point out what he sees as the most popular size classes. \u201cThe lift capacity and the reach, the market continues to favor 8,000 to 9,000 pounds with 10,000 to 12,000 pounds capacity a close second, as well as slightly heavier. The 50-plus-foot lift height tends to be a big mover,\u201d Mayo says. \u201cConsidering standard palletizing, the reach and lift heights are important, but they\u2019re not the only driver in buying decisions. With standard palletized loads, the 4,000-pound capacity at those lift heights and 2,000 pounds at reach, are key.\u201d Pettibone launched three new Tier 4-Final models in February, joining two released in 2015.<\/p>\n

Uncertainty over Tier 4-Final emissions technology and its maintenance could still influence buyers of any stripe. As the industry has seen with backhoe loaders and skid steers, a number of telehandler manufacturers have repowered or introduced specific models to occupy the 74-horsepower niche\u2014the level at which engines don\u2019t need DPFs and accompanying regeneration. Skyjack and Genie introduced such machines at World of Concrete and The Rental Show.<\/p>\n

\u201cWe also expect that with Tier 4-Final in full bloom we will see some customers reluctant to dive into the new technology right away,\u201d Fox says. \u201cHowever, we do expect a solid year for housing starts, which may force rental companies to add to their fleets to meet the demands of their customers.\u201d<\/p>\n

Manufacturers stress there are some differences between rental customers and fleets purchasing telehandlers outright.<\/p>\n

\u201cOur rental customers are looking to maximize their ROI with their machines, therefore they tend to order machines absent of bells and whistles, whereas you\u2019re more likely to see owner-operators among contractor buyers, and these customers tend to appreciate more features in their machines,\u201d Fox says. \u201cContractors also tend to be more brand loyal, so gaining new business among these customers can be more challenging than the rental customers who like to diversify their fleets.\u201d<\/p>\n

Brian Boeckman, JLG\u2019s global product director for telehandlers, agrees. \u201cRental buyers are focused on acquiring assets that have high utilization rates and offer low cost of ownership throughout the life of that asset. Some contractors are owner-operators and they may desire a higher level of product specification to suit their particular needs, or to provide them with a greater level of comfort throughout the day.\u201d<\/p>\n

Last year, for the first time, JLG made air conditioning an OEM option on its SkyTrak brand.<\/p>\n

\u201cWhile each of the buyer\u2019s needs align with handling and placing a load, contractor buyers tend to use the telehandler as a critical piece of their production, thus depending on the local dealer to a greater extent for the ability to provide parts and service support,\u201d Peterson says. \u201cAs projects often cross dealer coverage areas, we\u2019ve found that contractors appreciate a certain level of consistency in the responsiveness and support they receive.\u201d<\/p>\n

Anders Mantere, engineering manager for Terex Aerial Work Platforms (Genie), breaks buyers down a little further. \u201cThere\u2019s a difference between owners, as well. You have owners of large construction companies that buy machines, they\u2019re looking for similar things that a rental company looks for. If you\u2019re an owner-operator, that\u2019s a different story. They\u2019re looking for comfort as well and not just reliability. You\u2019ve got to distinguish the owner operators from the general owners, as well,\u201d he says.<\/p>\n

\u201cUniversally what they\u2019re looking for is a machine that has value throughout the life of the machine. They\u2019re looking to compare acquisition price, maintenance costs, service costs, and residual value,\u201d Mantere says.<\/p>\n

Regardless of the type of buyer, certain features and attributes are hot.<\/p>\n

\u201cWithin the last few years, more and more contractors are using telescopic handlers with suspended loads,\u201d Kiskunas says. \u201c[Manitou brand] Gehl has provided the option to add boom-tip lifting hooks to all our current production telehandlers above the RS6-34 size. In addition to providing the physical hook with a positive retention method, operators\u2019 manuals are updated with the correct procedures for suspended loads.\u201d<\/p>\n

In 2015, Genie made lifting shackles standard on its machines. \u201cWhat that allows you to do is sling or rig a load, which wouldn\u2019t be allowed if you had a standard carriage,\u201d Mantere says. \u201cWe\u2019ve elected to put our lift shackle right underneath the quick attach, in the very front of the machine. If you take off the carriage, it essentially becomes a miniature truss boom.\u201d<\/p>\n

Caterpillar\u2019s Peterson says rear cameras and reverse object detection have been areas of interest for his customers. \u201cRegardless of whether it is the high-boom pivot design popular in North America or the low-boom pivot design that is standard in the EU, visibility to the rear of the telehandler can be challenging,\u201d he says. \u201cThese two options increase the capabilities of the operator to have a clearer understanding of his or her surroundings, and to operate the telehandler in an efficient manner.\u201d<\/p>\n

As Caterpillar is transitioning its C Series models to the D Series to accommodate Tier 4-Final, it is offering a rear camera and reverse object detection system as options.<\/p>\n

JLG has also seen the trend. \u201cOur reversing camera and reverse sensing systems are becoming very popular options,\u201d Boeckman says. \u201cThese systems provide operators with a greater level of confidence when operating the telehandlers and provide owners a means to limit damage to equipment and materials on the job site.\u201d<\/p>\n

Genie also has introduced a rear proximity alarm, with visual and audible alerts, as an option for 2016.<\/p>\n

As operators are getting more creative with telehandlers, attachments are another growing trend. \u201cManitou Americas offers over 42 different types of attachments,\u201d says Kiskunas. \u201cThese attachments range from tire handlers to three-hook jibs and below-grade work platforms. One way to look at the usefulness of a telescopic handler is to view it as a self-contained four-wheel drive all-terrain power plant with outstanding range of reach for whatever work tool that is needed for the job.\u201d<\/p>\n

Both rental operations and fleet managers looking to keep operating costs down should key on maintenance.<\/p>\n

\u201cThis may sound like an \u2018old school\u2019 answer, but as much as construction equipment has changed over the years, one thing still remains the same,\u201d Kiskunas says. \u201cTelescopic handler owners interested in keeping their equipment in top operational function and safeguarding their investment from unplanned equipment failures need to have an active preventive maintenance program. This is the most important thing that owners can do to keep their equipment running in top shape.\u201d<\/p>\n

Genie\u2019s Mantere concurs. \u201cMaintain your engines in good working condition, especially with Tier 4-Final engines,\u201d he says. \u201cWith the emissions controls in the systems, you have to maintain the machine; you can\u2019t skip oil-change intervals, and it\u2019s really important to make sure your fuel stays clean. Boom maintenance is also important. We have wear pads in the booms. Make sure you check them. If you run them down, you risk damaging the boom with downtime as a result.\u201d<\/p>\n

Because telehandlers are highly maneuverable machines executing lifts at height, they add unique safety concerns to the job site. Manufacturers have added many features and safeguards over the years, but they\u2019re not done.<\/p>\n

\u201cAs manufacturers, we are always looking at ways of making our machines more safe, and that will never change,\u201d JCB\u2019s Fox says. \u201cPotential safety features we may see become more prevalent in the future include load moment indicators\u2014which is load-sensing boom lockout\u2014required technology in Europe that may make its way to North America, boom nose-mounted camera systems, remote-controlled machines, and interactive digital load charts.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

OEMs stay on top of their game as rental operations and fleets have some different requirements Telehandlers stand out among the mobile machines Construction Equipment covers in that they are rented much more than owned (and may be spec\u2019d differently), but there are common threads among rental operation purchasers and contractor buyers that keep manufacturers<\/p>\n","protected":false},"author":13,"featured_media":7540,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[236],"tags":[274,415,414],"class_list":["post-7539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-equipment","tag-genie","tag-telehandler"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/posts\/7539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/comments?post=7539"}],"version-history":[{"count":1,"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/posts\/7539\/revisions"}],"predecessor-version":[{"id":7541,"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/posts\/7539\/revisions\/7541"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/media\/7540"}],"wp:attachment":[{"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/media?parent=7539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/categories?post=7539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tractopart.com\/sp\/wp-json\/wp\/v2\/tags?post=7539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}