Intermediate Equipment Handbook
Intech Associates
At low utilisation of the equipment, the finance and depreciation costs can
overshadow operating costs as overall unit costs rise substantially.
In the UK it is expected that heavy plant will be used between 1,500 and 2,000
hours a year to be economic for the owner (Figures 1.7 and 1.8).
Figure 1.7 ECONOMICAL OWNERSHIP PERIODS FOR HEAVY PLANT - UK
PLANT ITEM
ECONOMIC LIFE - YEARS USAGE - HOURS/YEAR
LARGE HYDRAULIC
EXCAVATORS
9
1,575
DOZERS/SCRAPERS/
(GRADERS?)
10
1,680
LOADERS/SHOVELS
9
1,680
TIPPER TRUCKS
6
1,890
ROLLERS/
COMPACTION
6
1,680
DIESEL ROAD
VEHICLES
6-7
1,890
PETROL ROAD
VEHICLES
5-6
Source: Spon’s Civil Engineering & Highway Works Price Book, 1997.
1,890
Contractors and road authorities in developing countries can find it difficult to
approach these levels of utilisation for their road construction and maintenance
activities for various reasons. These factors include limited workloads for
individual specialist equipment items, seasonal factors, shortage of funds to
support the operations or cash flow discontinuities, low availability of equipment
(age, support problems), lack of performance incentives, the road network
logistics.
Where records exist, utilisation rates of well below 1,000 hours per year can be
experienced. This seriously affects unit operating costs.
In view of these figures it would be sensible for contractors, road authorities and
investors to consider commercially operated equipment hire companies to
ensure that any equipment investment is being utilised by somebody.
Intermediate equipment with flexible applications across a number of sectors will
offer greater chances of achieving high utilisation and thus profitability.
October 2012
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