Rebuilt Loaders Cut Production Costs

Size up the decision

Whayne Supply claims to be the world leader in certified rebuilds for Caterpillar, approaching 400 complete certified rebuilds. “You can save somewhere close to 40% to 50% depending upon the size of the machine,” says Dan Frailly, who has headed up the certified rebuild business since 1989. “It just depends on the model.”

Of course a complete rebuild only makes sense for larger machines. The Cat 980 is probably the smallest loader feasible for the customer. “When you get below that, the parts and labor that go into it approaches 90% of what a new machine costs. Then you add in the core value and it makes no sense. But definitely in the larger machines it is a viable option.”

Size makes a big difference because you pay for iron when you buy a piece of equipment. “The larger the machine, the more iron you already paid for,” notes Stock. “So if you watch the percentage of new for a refurbish, the larger the machine, the lower that percentage becomes.”

Gary Bell, vice president-general manager, KCMA Corp., explains, “The labor to do a full rebuild is roughly the same for a small machine as for a larger machine. So as a percentage of the value, labor is too high for machines under 5 to 6 yds. It also depends on the usage before and after rebuilding. We rebuild hot slag machines because they have very low resale value, even at low hours. So it is often more economical to rebuild a machine with 10,000+ hours for a second or even third life than it is to try and trade it in for a low value and buy new.”

Quarries often rebuild machines, as well. “This has to do with how they depreciate their equipment,” says Bell. “Once they get through the initial depreciation period, they can operate at a lower internal cost. So they often want to continue to operate a machine that has been fully depreciated. Also, capital budgets often are harder to get than maintenance budgets and rebuilds are often handled by maintenance budgets, not capital.”

As good as new

“Generally, the properly rebuilt unit will be as productive as it was originally,” says Bell. “Most rebuilds happen when the machine is over five years old, which is the normal spread between new models. Often, new models have performance, reliability or operational features that may make them more desirable than a rebuild on that basis.”

“A well-built refurbished wheel loader can provide the same performance and uptime as a new unit,” Metzgar asserts. “The remanufactured parts and warranty that are available now lend to a very good product after a rebuild.”

Caterpillar has a carefully designed and audited certified rebuild program. The machine is completely disassembled. “Every last bolt and nut is taken off,” Frailly points out. “There is nothing left intact. All of the glass is taken out. The complete machine is sandblasted. Any cracks are fixed and repaired. Every bore in that frame or anywhere else is brought back to new standards. It is very close to a new machine running off the assembly line.”

Machine availability vs. scheduled hours is a common measurement. “You may get a new machine and the availability could be 95%,” says Frailly. “When you remanufacture one of these certified machines, we see availability jump to 98% or 99%.”

The reason for the increase is the product updates incorporated into the rebuild. Cat mandates that any certified rebuilds incorporate all of the product updates that have been made to that particular model. “So it has very high reliability says Frailly. “Because it is a Caterpillar program, it will carry a standard machine warranty, just like new. And there are extended service programs available.”

The machine even gets a new serial number. But an important consideration is that you cannot perform a certified rebuild more than once in the machine’s life cycle.