Rebuilt Loaders Cut Production Costs

The current economy, coupled with the increased price of Tier 4 technology, has many considering the feasibility of refurbishing their wheel loaders rather than replacing them.

“Rebuilding a wheel loader vs. buying a new unit may well be the best answer at this time,” says Bill Metzgar, service trainer, Hyundai Construction Equipment. “As more manufacturers develop stronger reman programs, along with offering warranty on the products, contractors tend to look more closely at rebuilding wheel loaders vs. replacing due to the savings re-building a unit may afford them.”

Chad Ellis, Doosan, agrees, adding, “You have a lower investment cost in refurbishing with remanufactured parts into a wheel loader that you already own vs. the price of a new machine.”

“Remanufacturing is about lowering customers’ owning and operating costs and increasing uptime,” says Eric Metzger, product marketing manager, parts & service, Case Construction Equipment. “Case remanufactured components provide a drop-in replacement option that meets the OEM specifications. That’s because some parts may have been updated to reflect the latest engineering enhancements or new testing procedures.”

The savings can be substantial. “You can normally refurbish a large wheel loader for about 50% of the cost of a new machine,” says Kevin Stock, product manager, Volvo Construction Equipment. “That is going through it from top to bottom.”

But the decision to refurbish can get complicated. “When deciding to rebuild a wheel loader vs. purchase new, the decision has to be made on how far the rebuild will go and what remanufactured parts are available,” says Hyundai’s Metzgar. “In some cases, a new machine purchase would be the best choice due to the severity of wear. Also, warranty has to be taken into consideration according to the contractor’s needs.”

Benefits of Reman Components

The process of rebuilding can be quite extensive, and you can either have your own components rebuilt or you can use factory reman components. “Reman components can be very cost effective when rebuilding a wheel loader if the parts are available,” says Metzgar. “In most cases, warranty is available on major components such as engines, hydraulic pumps, transmissions, etc.” Hyundai suggests that reman parts be used when available.

“Remanufactured parts cost 20% to 40% less than new parts, offering excellent value while ensuring proper machine performance,” Metzger notes. “And when it’s time to sell the machine, the presence of OEM parts helps sustain strong resale values.”

CNH REMAN is a joint venture between the Springfield Remanufacturing Corp. and CNH Parts and Service that began in 2009. It offers a full line of remanufactured parts.

“Case remanufactured parts are remanufactured to original like-new condition,” says Metzger. “Unlike rebuilt parts, each Case remanufactured part is disassembled, cleaned and inspected. All cores are updated to the latest specifications, and components are checked, refurbished and replaced where necessary. Finally, the remanufactured parts are tested to meet original OEM specifications. We inspect and remanufacture critical machine assemblies in facilities that are solely dedicated to remanufacturing, using sophisticated processes to assure consistent quality from all components that carry the CNH REMAN designation and warranty.

“The CNH REMAN joint venture allows Case to offer its customers an expanded mix of remanufactured products that can help equipment owners lower their operating costs,” he adds.

The reman parts often perform better than the parts they replace. “Most Case reman parts are engineered to meet the latest OEM specs, and can be used to substantially improve the performance of refurbished equipment,” says Metzger.

According to Volvo Construction Equipment, factory supplied reman parts ensure quality. “It is done in a factory environment so there is repeatability,” says Stock. Volvo performs all remanufacturing in an ISO 9001-certified facility and provides a warranty.