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Producer buying habits shifting from years past

By |  December 16, 2019
Headshot: Jeff Lininger, KPI-JCI & Astec Mobile Screens

Lininger

There have been a couple of notable changes over the last year in how aggregate producers evaluate equipment for potential purchase.

End users are becoming increasingly interested in the overall cost of ownership and return on investment with equipment purchases. They are asking about the cost, both in dollars and in time, of maintenance. They’re also asking more for spare parts lists and suggested stock items, and more are taking advantage of extended warranty and service packages.

Another important factor is the efficiency of the equipment to process their feed into a finished product ready for sale. This is not only causing manufacturers to make sure their equipment is designed and manufactured to perform at a high level over the life of the equipment, but also to ensure they are able to collect the necessary information from operations. The advance of controls and data logging has made that much easier for both manufacturers and producers.

We also continue to see equipment being manufactured with increased flexibility of power options and other adjustments that can allow end users to better meet the needs of their application. The hybrid power track plants can run either on a self-contained diesel engine or be powered by line power once they’re in place for operation.

All of these things can have a major impact on the total cost of a piece of equipment, far beyond just the original acquisition cost.

Other developments

Renting and leasing equipment gives producers an opportunity to take advantage of new technology without the full commitment of purchasing. Photo by Kevin Yanik

Renting and leasing equipment gives producers an opportunity to take advantage of new technology without the full commitment of purchasing. Photo by Kevin Yanik

Another trend we’ve seen is an increased interest in renting and leasing units.

The same level of long-term confidence to purchase equipment that we saw in 2017 and 2018 has not been as widespread in 2019. By deciding to rent or lease machines, producers can accomplish their short-term goals in production, but better control their capital investments.

These options also give producers the ability to take advantage of new technology without the full commitment of purchasing.

At the end of the rental period, producers can convert the rental to a sale, or if their long-term business level does not warrant purchasing, they can return it. With this increased interest, it will be important for dealers to have sufficient rental inventory available for producers and the resources in place to support it.

These shifts in buying habits are symbolic of a more invested and more cautious producer who is taking all factors into consideration before making their purchase. We expect these trends to carry into 2020.


Jeff Lininger, North America sales director of the West at KPI-JCI & Astec Mobile Screens, has worked in the industry for nearly 20 years.


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