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00:00 14 Jul 1994
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Going from an industrialised farm tractor to a purpose built
machine has given the modern backhoe huge reserves of strength,
reliability and efficiency. Weak points: clutches and manual
gearboxes, hydraulic pumps, valves and hoses all working at their
upper limits, even axles and especially wheels have all been
totally replaced or heavily modified. Torque converter-powershift,
or shuttle, latest generation hydraulics and four- wheel-drive have
become standard features. Even though 27% of machines covered in
the CJ survey were classed as unreliable by hirers, very few
mentioned backhoe loaders as cause for concern.
UTILISATION
As a cashflow machine, the backhoe has a high rating with national hirers quoting utilisation figures in the mid to high 80s, better than they have been for many years. The reason behind the rise in the figures is because during the recession, literally thousands of machines were sold abroad to reduce outgoings in financially strapped companies. Some hirers admit that these are now only regarded as a non profit service to customers. 'It is a necessary part of our fleet, customers always need a 'JCB', then a two tool compressor, a dumper, some scaffolding and towers, disc cutters and finally drills,' reports a hire desk manager.
ECONOMICS
180 DEG BACKHOE LOADERS
The 180deg backhoe loader has been a staple machine since the dawn of the plant hire industry. And that's the major problem. Annual sales in 1993 topped the 3,300 mark, almost half the 1989 figure, but 1,000 up on 1992. The total UK machine park is in excess of 40,000 units and although most big hire companies change machines at either one, two or three years, these young secondhand units, purchased by small companies, remain in the hire sector swelling the hire fleets.
In straight return on investment terms the backhoe loader is probably one of the least profitable hire machines. Thirty years ago these machines carried sticker prices around the œ6,000 mark while today's, much improved, models are listed at approximately œ32,000. Yet drawing a trend line through 30 years of hire rates shows that these have failed signally to keep pace with replacement and servicing costs, inflation, wages, or indeed any measure you wish to use.
TRACK RECORD
UTILISATION
As a cashflow machine, the backhoe has a high rating with national hirers quoting utilisation figures in the mid to high 80s, better than they have been for many years. The reason behind the rise in the figures is because during the recession, literally thousands of machines were sold abroad to reduce outgoings in financially strapped companies. Some hirers admit that these are now only regarded as a non profit service to customers. 'It is a necessary part of our fleet, customers always need a 'JCB', then a two tool compressor, a dumper, some scaffolding and towers, disc cutters and finally drills,' reports a hire desk manager.
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ECONOMICS
180 DEG BACKHOE LOADERS
The 180deg backhoe loader has been a staple machine since the dawn of the plant hire industry. And that's the major problem. Annual sales in 1993 topped the 3,300 mark, almost half the 1989 figure, but 1,000 up on 1992. The total UK machine park is in excess of 40,000 units and although most big hire companies change machines at either one, two or three years, these young secondhand units, purchased by small companies, remain in the hire sector swelling the hire fleets.
In straight return on investment terms the backhoe loader is probably one of the least profitable hire machines. Thirty years ago these machines carried sticker prices around the œ6,000 mark while today's, much improved, models are listed at approximately œ32,000. Yet drawing a trend line through 30 years of hire rates shows that these have failed signally to keep pace with replacement and servicing costs, inflation, wages, or indeed any measure you wish to use.
TRACK RECORD
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