Rock Products

NOV 2017

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

Issue link: http://rock.epubxp.com/i/900079

Contents of this Issue

Navigation

Page 27 of 59

26 • ROCK products • November 2017 www.rockproducts.com Your Source for Customized Weighing and Metering Equipment Data Collection Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized Your Source for Customized 800-536-4880 tecweigh.com With More than 100 Years of Material Handling Experience, We Proudly Stand Behind Our Products with the Best Warranty in the Business and 24/7 Customer Ser vice. Control Gates Weigh Belts Belt Scales Call for a Quote or Visit Our Website Today We Are Superior By All Measure! The Q&A Forum of these mergers. Whether the mergers and acquisitions are good activities depends; there are companies out there that are very good at driving efficiencies, implementing needed change and running smarter businesses – we've seen this. We have also seen others that have struggled with the large-scale and rapid growth. For us, it generally comes down to the personal relationships and the procurement process, the latter of which tends to become more complex with significant growth. WEISS: For our customers, mergers can provide both positive opportunities and challenges: Positive from the standpoint of improving a customer's fleet and system efficiency by combining best practices, technology and talent; challenges from the standpoint of potential disruption in asset, business and talent rationalization that can sometimes accompany mergers. To add, some of our larger customers are moving to a centralized procurement strategy, driving consistency among their sites and negotiating purchases on their behalf with their suppliers. With our extensive dealer network and Caterpillar Corporate Account Services team, we are able to establish and maintain these critical relationships. Have you noticed changes over the past year in the way aggregates producers evaluate equipment and consider it for purchase? Are buying decisions made more on the corporate side or more on the produc- tion side? Is used equipment getting a closer look right now? KRAUSE: The biggest change is in the area of long-term expectations and views of equipment life cycles. Capital jus- tification timetables have shrunk as well. There are many machines in the field that have operated for 30 to 50 years. Today it seems as if five years is a long-term view of equip- ment. I am not sure how this is affecting actual purchases or buying habits, but if this stays a trend it is something we will continue to watch. Buying, to me, is still a local responsibility. As long as the local manager is held accountable for uptime, productivity and profitability, the local manager must be com- fortable that the local support and service is there to back up the equipment after it is purchased. Corporate accounts can help shape the transaction and things like terms and other services, but the ultimate buying is still local. CLARKE: Uptime, production and ownership costs are among the top categories customers consider. We've got to be the best value for all parties involved in the decision-making, from the purchasing people to the crews running the machine. SPAKE: It really depends on the customer and how they manage their equipment acquisition. We refer to a central- ized or decentralized process; most large customers have elements of both. Generally, the corporate entity sets the budget, but most of the time, the production or operations department heavily influences the buying decision. Some companies move or attempt to move toward centralized decision-making, but doing so isn't without its challenges. As for used equipment, inventories are down and prices are improving, which are both good things for an OEM. When purchasing production equipment, generally used equipment is not considered. However, used has filled a lot of voids for us over the past year as supply has tightened. LEPP: Our market looks to be shifting toward products that provide long-term advantages and savings as opposed to a "quick fix." This shift has caused much more consideration for drum motors in projects. GARRISON: Lately, we've noticed that producers are looking for equipment with more robust safety features in addition to the standard requirements for efficiency. Safety is a prior- ity. Operators are also expecting greater automation. Remote telemetry is a big thing as customers want to operate and monitor their plants from an app on their phone or tablet. If you can see your crusher levels with a quick glance to your digital device, you have more time to get other work done. MCLAUGHLIN: It appears increased emphasis has been placed on "total cost of operation" and "payback time period"

Articles in this issue

Links on this page

Archives of this issue

view archives of Rock Products - NOV 2017