Heavy Highway Contractor

  • 1.  Midwest Equipment Utilization

    Posted 09-17-2024 09:38

    Hello everyone. I just joined CFMA last month and work for a midwest construction company that I joined seven months ago. I'm working on an equipment analysis to see whether our internal and bid equipment rates are reasonable. Also, looking at each piece of equipment to assess our utilization hours. Can anyone guide me as to how they analyze their equipment and do you use something like an hourly standard figure to compare against actual? How can I get a standard hourly usage by equipment category for a company located in the midwest?  Lastly, is there such a thing where once a certain category  of equipment exceeds X number of hours, they think about disposing it? Thank you! George



  • 2.  RE: Midwest Equipment Utilization

    Posted 11-06-2024 11:18

    George,

    There was a huge effort for the heavy equipment comparator, Heavy Equipment Comparator  here is a link to the cfma page about it 



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    Mary

    Mary Davolt, CPA, CCIFP
    M +1 (331) 214-0869
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  • 3.  RE: Midwest Equipment Utilization

    Posted 11-09-2024 08:13

    Hi George,

    Following up on Mary's post, the Heavy Equipment comparator has 32 KPI's for fleet management including 2 specifically related to equipment utilization.  You do have the ability to filter by geographic region.

    At my company, we budget and track utilization very closely.  We just had our budget meeting for equipment hours this week.  At that meeting we review history of actual utilization by equipment group and application, consider cap ex plans, backlog and work mix and then set budget targets for the next year by equipment category.  

    I'm happy to answer additional questions / share some examples and info if you wish.  Just let me know.

    thanks, -Rich



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    Richard King CCIFP, CPA
    CFO
    Schlouch Incorporated
    Blandon PA
    (610) 926-7070
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  • 4.  RE: Midwest Equipment Utilization

    Posted 11-10-2024 00:01

    George, welcome to CFMA.

    I recommend getting Construction Equipment Economics by Mike Vorster. It covers all your questions. Specifically, chapters 12 and 13. https://cempcentral.com/book

    Last month we published a free playbook that covers your questions, albeit succinctly. I pasted two screenshots below. Consult the tips on utilization and churn charts.  https://getclue.com/playbook

    These resources should help you assess your equipment's performance and make informed decisions. Good luck. 



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    Oded Ran
    Co-Founder & CEO
    Clue (www.getclue.com)

    oded@getclue.com
    linkedin.com/in/odedran
    (424) 360 4645
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