Would you prefer the simplicity and lower cost of a “new” Tier 3 air compressor to the current Tier 4 technology? If so, you are not alone and Doosan Portable Power is providing a solution in the form of remanufactured air compressors that look, function and have the same factory-backed and dealer-supported warranty as when they were new.
In order to succeed, any approach must make fiscal sense. “The cost of new machines has increased substantially, causing some customers to seek alternatives to purchasing new equipment,” says Hugh McCluskey, aftermarket technical services manager, Doosan Portable Power. “As we worked to bring new emissions-compliant solutions to market, we noted the value to the customer of a factory reman solution if we could back it with full factory warranty supported across our dealer network. Our reman solutions offer just that with a cost that makes fiscal sense.”
Customers expressed interest in alternative reman solutions for reasons beyond purchase price. Many are concerned about potential serviceability issues and maintenance compared to their experience with legacy tier products. They were concerned that their internal technicians simply did not have the tools, training or experience to properly care for Tier 4 technology.
Customers were also worried about operational costs. Tier 4 Final machines require diesel exhaust fluid (DEF) and the aftertreatment systems can require maintenance. “All of this contributes to the total cost of ownership,” says McCluskey.
Price Difference Opportunity
The cost differential between Tier 3 and Tier 4 machines is really what makes the reman opportunity possible. “We replace and/or recondition the components to offer the customer a machine that has the reliability and appearance of a new machine at a price that makes sense,” says McCluskey
The case for reman increases with the initial purchase price. “The larger the machine, the larger the price tag and the more customers are willing to entertain a strong value proposition to use a reman solution,” says McCluskey. “We started our reman operations with higher horsepower machines up in the 400-hp plus range and have worked our way down to about 100 hp now. As you move down to the 100- to 200-hp range, there is less strength to that value proposition.”
As you get into the smaller machines, it becomes more about the confidence of the customers to support the machines themselves. “A lot of small- to mid-sized companies do their own maintenance and they prefer to stay away from the newer technology,” says McCluskey.
Just Like New
When the equipment is remanufactured, nothing is overlooked. “We work with our engine suppliers to do an OEM-certified reman on the engine,” says McCluskey. “We do the OEM-certified reman on the airend.”
The heat exchangers and cooling systems are inspected and all the belts and hoses are replaced. “Most if not all of the wiring is replaced. In most cases, the machine is actually moved down the assembly line like a new machine,” McCluskey points out. “It goes through the exact same test procedures as a new machine and leaves the factory with the same warranty as a new machine.”
Having a good supply of used cores is critical to any reman operation. Proper maintenance will determine which units can be remanufactured. “Assuming you are doing the overhaul as part of a planned maintenance regimen and not because of a catastrophic failure, you can get multiple rebuilds out of one airend,” says McCluskey. Doosan advocates the use of the correct fluids and filters, because it can help you keep this very expensive, precision-machined component going for a very long time.
Doosan Portable Power reman air compressors are sold through and supported by the dealer network. These products have filled a need in the market and the business continues to grow.
“We started this program along with our Tier 4 initiatives a few years ago,” says McCluskey. “We have been doing it for about four years. I can say it is a meaningful part of our business now.”
Eventually, Tier 4 Final machines will replace existing machines in the marketplace and the opportunity for reman will fade. “I don’t think this is a forever opportunity,” says McCluskey. “As the higher emissions tier product becomes more prevalent in the marketplace and people become more familiar with it, then some of the value proposition for the reman will fade away.” But for the time being, the reman Tier 3 air compressors offer an attractive solution for many customers.
