Tech
The Big Question: How Long Until New Equipment Arrives?
As crowds of potential buyers wound their way among the displays of bright, shiny construction equipment at the recent World of Asphalt, a pervading question was on their minds.
How long will it take for new equipment to be delivered?
Representatives of the asphalt industry’s largest equipment manufacturers were in many cases almost as stumped as the visitors to their booths between March 29 and 31 at the Music City Center in Nashville. The uncertainty brought on by a host of well-publicized issues – supply-chain constraints, labor shortages, increased materials prices – makes it nearly impossible to say exactly how long buyers will have to wait.
Answers ranged from a few months to next year, depending on the manufacturer and the desired piece of equipment. But all of the manufacturers reported challenges in getting equipment out to dealers and to customers.
One thing also for sure, manufacturers are ramping up production as best they can. Not only is the lack of supply driving the plans for increased machine production, but the recently passed infrastructure law is expected to keep demand high for years to come.
“This is the biggest backlog we’ve ever had,” said Brandon Granger, marketing specialist for Mauldin, which specializes in asphalt pavers.
“On all of our equipment we’re out almost the whole year,” he said at the company’s booth.
That included the company’s Maintainer M415XT, which is a combination motor grader, loader and toolcarrier. “We sell specifically to the dealers, so a lot of them are stocking up. Ninety-five percent of the time, it’s all sold before they actually get it in stock.”
Citing supply chain struggles, a common question he says has become, “What are we going to be out of today?”
“This is the biggest backlog we’ve ever had,” said Brandon Granger, marketing specialist for Mauldin, at this year’s World of Asphalt.Equipment WorldAt the Dynapac booth, where the company’s new D30T was on display with patriotic wrap, President and General Manager Jamie Roush was in the rarer position of being able to offer a delivery time of 15 to 20 weeks on the new highway-class paver.
“You can still get them in ’22,” he said.
He had the luxury of putting in his production forecast at the factory 10 months ago for the new model being manufactured for the first time in the U.S.
“Because it’s newly launched, it’s not sold,” he said.
But that availability was not expected to last after the first batch was gone.
“Once I get through that excitement and those units all get sold, then we talk about extended lead times,” he said. “Once you get through that barrage of what we have on forecast, then it’s a whole different discussion.”
Dynapac is also planning to increase production of its asphalt paving and compaction equipment, thanks to the federal Infrastructure Investment and Jobs Act.
“In general, we have ramped up forecasts significantly with the infrastructure package,” he said. “The IIJA is going to be massive for us.”
At this point, though, manufacturers are not reporting increased demand due to the historic boost in infrastructure funding. The sentiment seems to be that increased material and job costs will lead states to shift to smaller projects this year and then spend more in 2023 and 2024 as costs normalize.
Federal funding from the law also was late getting out to states by six months due to a stalemate in Congress. That could lead to further project postponement to later years.
“You can still get them in ’22,” said Dynapac President and General Manager Jamie Roush of the new D30T asphalt paver at this year’s World of Asphalt.Equipment WorldAt the Wirtgen booth, Director of Marketing Matthew Graves attributed the increased demand to the current backlog rather than the infrastructure law.
He noted that the slowdown at the beginning of the pandemic left many contractors uncertain on whether to buy new equipment. But the construction industry in most cases was soon able to return to work. On top of that, many states saw an opportunity to increase road and bridge work as lockdowns and quarantines meant less traffic.
“There’s always that moment of pause where a contractor is like, ‘Do I make that investment or do I go another paving season?’” he says. “And I think a lot of folks said, ‘I’m going to pause.’ And it was enough to cause a blip in 2020.”
But contractors’ businesses grew that year and in 2021, and they continue to do so in 2022. “Then all of a sudden they’re like, ‘OK, it looks like clear sailing. It’s time to pull the trigger.’”
Quite a few of those contractors were checking out Wirtgen’s latest compact milling machine, the W 120 Fi. The machine on display was the first new W 120 Fi to enter the U.S.
“It’s already shipping to the rest of the world,” he said. “It’s in a full-on production cycle.”
He added that the company’s dealer network had little inventory. When asked the estimated delivery time on an order placed that day, he said he did not know for certain, but added, “It’s not terrible.”
“I’ve gotten that question a lot,” he added, noting that much of the answer depends upon unpredictable, rapidly changing conditions.
“A lot of the times, we’ll have finished machines sitting at the factory. And now it comes down to logistics – it’s getting a ship.”
“We’re going to be making a lot more machines than we did last year,” said Eric Booth, Sakai product training and marketing manager, at this year’s World of Asphalt.Equipment WorldSakai, like most other equipment manufacturers, has also faced inventory challenges, and gauging delivery times depends on a variety of factors. It is being flexible with its production.
“We’re seeing anywhere adding on about a month or two to some of those lead times,” said Eric Booth, product training and marketing manager. “That will definitely impact our production schedule.”
“We like to gang run things,” he adds. “So we’ll make a model of five or six at a time. But if we need to alter that, we’ll change that to a different model that we can get in.”
Despite the challenges, the maker of soil and asphalt compactors is looking to a banner upcoming fiscal year, which started in April, and is forecasting a 50% increase in growth.
“We’re looking to really ramp up again for next year,” Booth said. “We’re going to be making a lot more machines than we did last year and also importing more” from its overseas factories.
Joe Turnage, product manager for Hyundai, estimated delivery times for the company’s new HL980A wheel loader at about six months.
He said dealers were also collaborating to help contractors get equipment. He presented a recent example of a dealer in Tennessee swapping a wheel loader for a different model at a dealership in Maine a customer wanted.
“They traded machines just to make the deal,” he said. “So having equipment on the ground with other dealers working with each other really helps.”
At Volvo Construction Equipment’s booth, Product Manager John Waldron estimated deliveries of the EWR130E wheeled excavator would arrive in December if ordered that day.
He predicted it would take years for the equipment industry to catch up with the demand.
“I bet you at least until 2025, we’ll be slammed … just trying to build everything we can.”
He notes that ramping up production will continue to prove difficult, “because you’re limited.”
“If the seat manufacturer can’t get me a seat, I can’t send the excavator.”
Luke Gribble, John Deere solutions marketing manager, expressed a similar sentiment about the challenges manufacturers face.
“As long as you can get all the parts and everything to build it,” he says, “we’re trying to do the best we can to keep the factories within max capacity.”
Caterpillar is bidding farewell to its 259D3, 279D3 and 289D3 compact track loaders with the introduction of its new, next-generation 255 and 266 models.
The completely redesigned models debuted at media and customer events at Caterpillar’s Edwards, Illinois, Demonstration and Learning Center last week. The 255 and 265 offer improved engine performance, more lift height, a roomier cab and more standard technology than their predecessors.
“We kept the DNA of the D3 series while reimagining the possibilities of loader performance using voice of customer feedback to lead the way,” says Trevor Chase, product application specialist for Caterpillar. “Both next-generation models leverage the many benefits offered by the vertical lift design. The new Cat 255 replaces the 259D3, while the 265 replaces both the 279D3 and 289D3 machines.”
The CTLs are the last of Cat’s building and construction products to get the next-generation treatment and simplified nomenclature. The first number (2) represents the skid steer loader and compact track loader machine family; the middle number (5 or 6) designates the machine size; and the ending number (5) is the compact track loader identifier. Skid steers will be identified by a 0 end number. Additional new models will roll out in the coming months, the company says.
CaterpillarMore power and torque
Cat equipped the 255 with a C2.8T engine and the 265 with a C2.8TA engine, both at 74 horsepower. This gives the new machines a significant boost in torque – 13% for the 255 and 43% for the 256 – over their D3-Series predecessors. The engine and cooling package are mounted lower in the frame for added visibility out the rear window and stability while lifting heavy loads.
Customers attest that the added lift height makes truck loading easier. The 255 offers 10 feet 4 inches of lift height, while the 265 can reach 11 feet high.
“The lift height has made a big difference when loading trucks,” said Derrick Roger, owner of Coast to Coast Lawnscapes, who spent several months testing the 255. “You can get on top of that truck now and empty the bucket; whereas, before you would have to shake the bucket to try to get the material to fall out.”
The 255 delivers 36% more tilt breakout, 26% higher lift breakout force and a 24% increase in rated operating capacity (ROC). The 265 also delivers 19% higher tilt breakout force and 22% higher lift breakout force.
Standard hydraulic pressure has been increased to 3,500 psi, allowing the 255 and 265 to operate all Cat Smart Attachments with the standard auxiliary hydraulics provided.
If demanding attachments require additional hydraulic flow, customers can have their Cat dealer activate the high flow functionality on the machine or remotely via software update. This makes it possible for the CTLs to hit 30 gallons per minute of flow at the standard system pressure.
A High Flow XPS factory option increases auxiliary hydraulic system pressure to 4,061 psi for both models, while also increasing the hydraulic flow to 30 gallons per minute for the 255 and 34 gallons per minute for the 265.
The torsion suspension undercarriage delivers better operator comfort, track wear and material retention, plus the stiffer design results in smoother graded surfaces, Cat says. A new 12.6-inch bar-tread narrow track option is available on the 255.
A more spacious cab
Cat says it has increased the cab width by 2.75 inches without making the machines wider and the footwell-to-ceiling height by 1.8 inches. The larger cab gives operators an additional 1.5 inches of hip room and 1.1 inches more width between the joysticks.
A range of new mechanical and air-ride suspension seat options are available, including a ventilated and heated seat. A new automatic temperature control allows operators to set a specific temperature. Relocated vents help cool or heat the machine quickly.
The standard package includes the same 5-inch LCD monitor as the D3 Series CTLs, which offers Bluetooth connectivity and functionality for the rearview camera feed, creep, job clock, and maintenance reminders.
Customers can upgrade to a new 8-inch advanced touchscreen monitor, like the display found in Cat’s next-generation mini excavators and small loaders. It delivers advanced radio control and supports the 270-degree multicamera option. The advanced monitor pairs with the advanced joysticks for integrated control of all machine functions and adjustments.
“You can adjust the movement – or the aggressiveness or the conservativeness – of how your tracks and lift arms work through your advanced touchscreen display,” Dante Thomas, skid steer and CTL marketing manager, said. “And you can control of all of your display functions from the advanced joysticks. There are buttons with enter and select functions on those joysticks that you’re able to change any functionality that is possible.”
Cat also redesigned the entry, making the 255 and 265 easier to enter and exit. The cab door can be opened even when the lift arms are not fully lowered to the frame stops. It can be removed without tools in less than one minute.
Advanced technologies
Calling the 255 and 265 “one of the most attachment-friendly machines on the market,” Thomas says both the standard and advanced monitors can run Cat Smart Attachments, such as the dozer and grader blades and backhoe.
“It has attachment recognition that when you plug the attachment into the machine, it recognizes which attachment is connected. It adjusts your joystick pattern, so it gives you intuitive and simple control,” says Thomas.
The available Cat Product Link Elite system tracks machine hours, location, asset utilization, provides fault code details and delivers advanced monitoring and machine health, that is remotely accessible via VisionLink. In addition, Product Link Elite provides remote flash and troubleshooting capabilities and quickly enables the remote activation of the SEA High Flow feature.
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Quick Data is a snapshot of new and used wheel loader sales trends from Randall Reilly’s EDA equipment financing data, TopBid auction price service and EquipmentWatch market trend reports.
Demand for wheel loaders has softened with new and used financed wheel loader sales down year-over-year from August 1, 2022 to July 31, 2023 according to Randall Reilly’s EDA equipment financing data.
Financed new wheel loader sales dropped 10%, while used financed wheel loader sales fell by 15% compared to the same period last year.
Cat (22.4%), Deere (21.0%) and Komatsu (12.4%) held their positions year-over-year as the top three sellers of new financed wheel loaders. Top models sold included the Deere 544 P-Tier (401), Deere 624 P-Tier (380) and the Komatsu WA270-8 (364).
[Watch: “A Really Solid Machine” – Test Run of Komatsu’s WA475-10 Wheel Loader]
Cat (28.5%) and Deere (22.9%) also snagged the No. 1 and 2 positions for the highest number of financed used units sold, with Case (14.7%) claiming the third spot. On the date we examined the data, the top-selling models were the Case 321F (340), Cat 926M (164) and the Case 621G (159).
During this period, there were more buyers of new loaders in Florida (955) than in any other state. Buyers of new wheel loaders were also prevalent in Texas (893) and Illinois (665). Those states were also top buyers of used financed machines, with 712 units sold in Texas, 413 in Florida, and 412 in Illinois.
EDA data is compiled from state UCC-1 filings on financed construction equipment. EDA continually updates this data as information comes in from each state.
[Related Content: A Rundown of the Latest Wheel Loaders for 2023]
Used Wheel Loader Market
Used wheel loader prices rose 10.1% for the 12-month period from August 1, 2022 to July 31, 2023, according to Randall Reilly’s EquipmentWatch market trend data.
The average price for a used wheel loader was $137,465 in July 2022 compared to $151,367 in July 2023. The average age of used wheel loaders fell slightly during the period, dropping from 8.8 years to 8.3 years.
EquipmentWatchThe average age and price were calculated on 153,356 resale listings during the period in the EquipmentWatch database.
Over the last 12 months, prices for used wheel loaders have in general increased, with the largest gains in October 2022 (6.5%) and February 2023 (2.9%).
EquipmentWatch defines fair market value (FMV) as the monetary value of an asset that can be expected in a transaction with a single seller and single buyer, neither of whom is under any compulsion or time restriction to complete the transaction. FMV for heavy equipment is most closely associated with the private resale market, as opposed to the public auction market.
Wheel Loader Auction Prices
Caterpillar also dominated the auction charts, accounting for 18 of the top 20 wheel loaders sold in terms of price for the 12-month period of September 1, 2022 to August 31, 2023. Deere and Komatsu were the only other manufacturers to appear on the list.
The top auction price spot went to a 2021 Cat 966M with 2,188 hours. It sold for $400,000 at a Ritchie Bros. auction in Orlando, Fla., on September 21, 2022. The second-highest price paid was $315,000 for a 2019 Cat 980M with 7,836 hours at another Ritchie Bros. sale in Atlanta, on December 1, 2022. Rounding out the top three was a 2018 Deere 944K with 8,941 hours. It sold for $290,00 at a J.M. Wood Auction Co. sale in Montgomery, Ala., on March 21, 2023.
In total, there were 358 wheel loaders sold at auctions tracked by Top Bid during this time, with an average price of $99,747. (This does not include any units sold for less than $5,000.)
EDA, Top Bid and EquipmentWatch are owned by Randall Reilly, parent of Equipment World.
[Related Content: Heavy Equipment Auctions Set for Second Half of 2023]
Volvo Construction Equipment bought Terex’s off-road truck line in 2014, and six years later, it rebranded its articulated haulers under the Rokbak name.
On this episode of The Dirt, we hear from Paul Douglas, Volvo vice president of rigid haulers, who explains the differences between the old Terex line and the Rokbak trucks. He also gives a hint at some of the new things coming from Rokbak, including redesigned cabs and replacing the current trucks with new models. There’s also the possibility of a new size truck to hit the market.
Rokbak, as with other construction equipment brands, is working toward a zero-emissions future. On this episode, he explains where the articulated dump truck market is heading in terms of alternative fuel. He adds that customers will see big changes in emissions and engines in the next five years, with the ultimate goal of reaching zero emissions within 10 years.
So to learn more about Rokbak and what the brand has in store for the future, check out this episode of The Dirt.
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