Figure 1: Different Off-road Lubricant solutions
While growth in the used equipment market emphasises the importance of correct maintenance with the right lubricants, universal oils are extremely well placed to meet end user needs by optimising machine performance, reliability and durability across a mixed fleet.
Second hand equipment sales on the rise Investing in used equipment has many advantages for the off-road industry: the saving on upfront costs associated with new equipment, combined with limited depreciation over the machine’s lifecycle, leads to reasonable resale values and lower operating costs. This drives productivity
and contributes to the bottom line. Depreciation on off-road machines is lower than that of cars, for example, due to their longer total lifespan. Most depreciation happens in the first year off the factory floor – around 20-40% – but thereafter a machine retains its value well, providing it is properly maintained.
Due to the increase in used equipment in the market the average age of machines in operation is rising. A well looked after machine can generally fetch 15-20% more on resale value, therefore appropriate lubrication and maintenance is key to maximising equipment resale potential.
Figure 2: Typical Financial Project Cycle
Average prices for used equipment are down 15% compared to 2015, as sales increase from overseas and expanding European markets.
Following the recent Brexit vote, second-hand off-road equipment sales have increased in the UK; while domestic buyers focus on cash flow, overseas buyers may take advantage of the dip in sterling to buy in the UK. Agricultural tractors, excavators of various sizes and mine haul trucks are some of the most popular in the second hand market.
Universal solution to changing fleet needs Growth in used equipment sales means that fleets may increasingly be made up from of machinery of different ages and from multiple OEMs. For fleet operators this makes buying, storing and applying an array of different lubricants increasingly expensive, while further raising the risk of the wrong lubricant being applied to a particular component.
A recent European study by Lieberman research worldwide on behalf of Afton Chemical surveyed off-road end users in
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LUBE MAGAZINE NO.136 DECEMBER 2016
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