34
ACT
OCTOBER 2013
ROUNDTABLE
USED CRANE MARKET
probably the most commonly asked for
crane, new and used.
Forepaugh:
We’ve seen the most demand
at Cleveland Crane & Shovel for rough
terrain cranes and GMK all-terrain
cranes. Grove’s best seller has been the
TMS9000E – 110-ton capacity. Here
in Ohio, there has been an uptick in
business due to the natural gas and oil
work from the Marcellus Shale Formation
that has been under way throughout the
Allegheny Plateau region.
Lonergan:
At Empire Crane, we’re seeing
the most demand for five-axle all-terrain
cranes – from 150- to 240-ton capacity.
HOW IS THE DEMAND FOR USED
CRANES COMPARED TO THE NEW
CRANES YOU OFFER?
Autry:
It depends on the client’s budget
and need for the crane as the company
looks toward the future. If the company
anticipates growth and has high revenue
projects in the pipeline, an investment
in a new crane often makes sense. Other
companies are looking to replace older
cranes that have exhausted performance
ability with a new crane – usually with
updated, improved options as well as
increased lifting capacity – is typically
what they are looking for. More often
than not, a client who initially shops for
a used crane will decide a new crane is a
better fit after comparing the advantages
between the two.
Forepaugh:
Prices have always been
a determining factor, and in today’s
economy, that’s been especially true. A
lot of companies need the cranes to do
the work, but they’re just not confident
enough that there will be enough of the
work to justify the investment in new
equipment.
Lonergan:
For every new crane we’re
selling, it seems like there are one or
two used cranes that are part of the
deal as customers look to upgrade their
equipment while keeping the size of their
fleet from expanding. We’re constantly
pursuing domestic and international
business on used, as well as new,
equipment. Rather than buy new cranes,
some customers are looking for newer
used cranes.
The expectations for the quality and
performance of used cranes is getting
higher year by year in the international
market. The safety requirements are
becoming greater in the developing
world. We order the necessary engines to
meet those requirements. Latin America
is not just taking all of the old relics.
WHERE ARE YOUR USED CRANES
COMING FROM?
Autry:
Trade-ins and cranes that were
previously rental cranes are the majority
of Mardian Equipment’s used crane
inventory. When a client is looking into a
crane purchase, there is an advantage for
them to rent a crane they have interest
in before making a buying decision. This
allows their operators to experience the
crane firsthand in the field and helps
them decide on the best purchase in
regards to size, options needed, type and
even used vs. new.
Forepaugh:
Trade-ins are always a big
factor at Cleveland Crane & Shovel.
We’re hearing from customers who
bought cranes from us and put them
into service several years ago, and are
thinking about updating their fleet with
newer equipment. We know there are
plenty of customers who are going to
want to take advantage of the 50 percent
bonus depreciation rules that have been
extended for qualified property placed in
service through December 31, 2013.
As a Manitowoc dealer for 40 years and
a Grove dealer for five years, we can
offer customers the opportunity to sell
their older equipment that they have
rented down through time and replace
it with new equipment. On the other
end, the used-crane customer can rest
assured the machine has been properly
maintained by a Manitowoc/Grove
distributor and overhauled to peak
functionality.
Lonergan:
The biggest thing is trade-ins.
We’re not going out and looking for
surplus machines. In the past, when the
demand for used machines was higher,
we went out and actively pursued good
late model cranes from fleet owners.
ARE YOU SEEING ANY ENCOURAGING
TRENDS FOR USED CRANES?
Autry:
The used crane market seems to be
headed in a positive direction. After 2007,
many high quality, newer used cranes at
terrific prices hit the market due to the
recession. That used inventory has been
shrinking as the economy gets stronger,
so new crane purchases may be the trend
in the next couple of years.
Forepaugh:
The demand continues to
grow for used cranes as new prices climb.
Cleveland Crane & Shovel customers can
generally get the same rental rate out of a
used crane purchased for $600,000 as for
one that costs upwards of $1 million.
Lonergan:
I have a lot of friends with all-
time highs for used inventory. That’s not
an ideal situation for them, but it does
give someone looking for a used crane
more choices.
WHAT DOES YOUR COMPANY DO THAT
SETS IT APART FROM COMPETITORS
THAT SELL USED CRANES?
Autry:
As a factory authorized dealer
for the leading crane and equipment
manufacturers in the industry, we
proudly offer the client all of their crane
purchase options under one roof. We
offer complete service and maintenance
programs and factory direct parts for all
of our used and new cranes. We put our
used cranes through certified inspection
and testing to ensure they will perform at
their optimum levels. We can do in-house
upgrades or accessory modifications
to equipment per clients’ requests. Our
factory trained and certified maintenance
technicians make up one of the most
experienced crane service teams in the
industry.
Forepaugh:
Cleveland Crane & Shovel is
one of the oldest original Manitowoc
dealers in the United States, and we’ve
always maintained our Elite Dealer status.
Being awarded the Grove dealership
in 2008 expanded our ability to offer
our customers the most innovative and
advanced lifting equipment available.
What really sets us apart is our
employees. They provide the same high-
quality service to every customer 24
hours a day, 365 days a year. To give you
an indication of the quality of our staff,
we have a Grove 8.1 Certified Technician
for GMK cranes that scored a 99 on the
written test taken at Grove’s plant in
Shady, Grove, PA. That’s the highest score
on that test so far.
Lonergan:
Empire Cranes represents
many well-known lines, and we are the
authorized distributors for the complete
line of Terex Cranes, Tadano-Mantis
Cranes, Grove Industrial Cranes and
Manitex Boom Trucks. That lets us buy
OEM parts at the best possible prices
and pass along savings to the customer.
We have certified third-party crane
inspectors on staff. Empire Crane has a
full sales, parts and service facility located
in Central New York, with branches in
Boston, Massachusetts and Metropolitan
New York/New Jersey and offers over-
the-road service to all locations. We also
continue to serve all corners of the world
for crane sales and parts and service
support. If you buy a used crane from us,
it will be in top-notch condition, and we’ll
work with you to keep it that way.
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