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Heavy equipment operator salary and benefits 2023

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This article is based on the results of Equipment World’s inaugural Heavy Equipment Operator Salary and Benefits Report. You can download the full report here.

Heavy equipment operators and managers of operators overwhelmingly agree on one thing: the younger generation doesn’t want to work. That is among the findings from Equipment World’s 2023 Heavy Equipment Operator Salary & Benefits Report.

The survey, conducted by Equipment World, was taken by 343 construction industry professionals from April 3-21, 2023. Of those, 208 were heavy equipment operators, and 135 managers of heavy equipment operators. Responses that did not fit the job title criteria were not included in the results, and the observations drawn from the results were limited to responses from qualified individuals only.

Participants across the U.S. answered more than 20 questions about pay, benefits, training, and workforce development. 

An overwhelming 77% of operators and 84% of managers of operators say the lack of work ethic by the younger generation is the biggest reason companies are having a hard time finding talent. And it’s leaving the current workforce spread thin. But not all of the comments placed the blame squarely on younger generations. Some pointed to a lack of awareness of construction as a viable career option and a lack of training for young workers.

“It’s not that the younger generation doesn’t want to work; it’s that too many kids are not being shown the opportunities that exist working in the blue-collar world,” said Edward Drake of Randsco Pipeline.

Glen Pyburn of Arthur Pyburn & Sons Inc. added, “It’s very difficult to develop a good operator who has no mechanical ability and no time as a laborer.”

It’s a worrisome statistic considering the number of employees who will soon be aging out of the industry and the staggering 341,000 job openings in construction, as of March. The Bureau of Labor Statistics estimates the average age of a construction worker is 42. Equipment World’s survey, however, indicated the average age of operators is even older. 

On the survey, 82% of the respondents were 50 or older. Forty-four percent of respondents had more than 30 years of experience, and 29% had 21-30 years of experience. 

And despite operators citing pay and benefits as the most important factor when choosing a new job, 37% of respondents say it’s still insufficient. Or perhaps, not enough to make up for the long hours that the industry is known for. Among operator respondents, 21% – the highest response rate of any category – listed their annual pay, before taxes, including overtime, bonuses and incentives, as $100,000 or more. A total of 54% said they made between $50,000 and $90,000.

Another top factor for choosing a new job was location, followed by the scope of work. 

P. Edward Archuleta of Perfecto Archuleta Construction says the higher wages brought on by inflation and a shortage of operators have been another challenge in attracting quality talent. “The good, qualified operators are being paid to stay in their current position, leaving a poor quality of operator available to hire.”

Findings from the Associated General Contractors of America’s 2023 Construction Hiring & Business Outlook show that pay in the industry has been rising. Average hourly wages for construction workers rose 6.1% from December 2021 to December 2022. This exceeded the 5% rise in average earnings for all private-sector production workers during the same period. 

A majority of our operator respondents, 63%, say they have been with the same company for at least the last five years, and 33% say they have a clear career path at their current employer.

When operators are ready to make a career move, they tend to find their next gig by word of mouth (68%). Next was Indeed or other job posting sites (26%). Coming in third was going directly to a contractor’s website. If there was ever a reason to invest in your local marketing efforts, this is it. 

Operator climbing into the cab of an excavatorGetty ImagesThe Training Gap

Despite the shortage of skilled operators, continuing education and training ranked the lowest among operators when considering a new employer. Corporate culture was also at the bottom. Both of those factors, however, have ranked high in studies of younger workers and the companies they are attracted to. 

[Related: Why Do So Many People Want to Work for This Contractor?]

With less of the younger generation exposed to careers in construction – due to the fewer vocational classes offered in high school or the social stigma of blue-collar work – company-provided training will likely become more necessary. 

Half of all operator respondents said they had not undergone technical training for their role, and a quarter of respondents said they are encouraged to seek out their own training. Only 15% were provided training by an external facilitator by their employer, and even fewer said their employers (13%) offered a company-wide training curriculum for all employees. Another 6% said their employer provides access to OEM/supplier online or in-person training courses. Over 80% of operators surveyed were non-union. 

Managers of operators more frequently cited internal training opportunities, with 56% saying operators have access to a company-wide training curriculum. Over one-third (34%) of managers said the company sends employees to training events or brings trainers to the facility, and more than a quarter (28%) said the company provides access to OEM/supplier online or in-person training courses. Less than a quarter (22%) said they encourage operators to seek out training on their own.

So, is the lack of available training and lack of interest in continuing education hurting the industry? It certainly stands out as one of the areas where management and employees were the most divided.

“There’s very little help from the older generation,” said one respondent. 

“The younger generation lacks discipline and focus. They’re very irresponsible about employment duties,” said another. 

As the labor gap continues to increase, as is predicted, contractors will need to consider proactively training new employees, paying more for the ones they have, adopting more technology to bridge the skills gap or all of the above and more. 

Despite those challenges, the overall tone of the free comment section made it clear: there’s a lot to like about the profession, with several respondents saying some form of, “I love what I do, and I wouldn’t be happy doing anything else.”

Want to see the full results of the survey? Download Equipment World’s Heavy Equipment Operator Salary and Benefits Report, including data that was not included in this story.

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Cat’s Next Generation 255 and 265 Get More Power, Lift Height

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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.

Caterpillar 265 compact track loader carrying a blockCaterpillarMore 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: 2023 Top-Selling Wheel Loaders and Auction Trends

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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.

EquipmentWatch Used wheel loader price and age chartEquipmentWatchThe 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

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Video: A closer look at Rokbak articulated dump trucks

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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.  

Equipment World serves up weekly videos on the latest in construction equipment, work trucks and pickup trucks – everything contractors need to get their work done. Subscribe and visit us at equipmentworld.com!

In This Episode:

  • 00:00 – Rokbak Articulated Haulers
  • 00:30 – Is Rokbak More Reliable Than Terex?
  • 03:22 – Brand New Cab
  • 06:10 – More Changes to Upcoming Rokbak Trucks
  • 09:20 – What Will Rokbak Do in the Next 2-5 Years?
  • 11:24 – What Alternative Fuel Will Rokbak Haulers Use in the Future?
  • 14:53 – Final Thoughts

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