Contractor Roundtable Highlights

Light sEquipment Makers: Opportunities with Big Contractors

While a majority of light equipment purchasing decisions are now made on the local level, light equipment makers do have an opportunity to capture national sales contracts by offering attractive programs, according to the CIMA Contractor Roundtable.

Also, while more of their rentals are for the smaller equipment than for larger equipment, they are still likely to buy, or rent to buy, light equipment.

Regional Preferences

The brand of light equipment large contractors choose is likely to be determined by local offices, with factors such as price and regional availability and support being important determinants, many contractors said. And even those contractors that do standardize on particular brands said that project managers have the discretion to override the corporate preference.

Despite the local discretion in choosing light equipment, some contractors said manufacturers have an opportunity to make corporatewide sales deals.

More opportunities exist where there's greater demand for a particular piece of light equipment, according to Chris Ryan, Vice President of Equipment for Boh Brothers Construction Co. "I think it's completely related to density," he said. "On a turnaround, or large plant job, there are opportunities to consolidate and utilize the efficiencies of a program. On a small bridge job 100 miles from a city center, it becomes more problematic."

Going through Headquarters

Even though contractor Peter Kiewit Sons', Inc. lets local offices choose equipment that costs less than $10,000, manufacturers can still influence those purchases through headquarters, said Neal Ferry, Corporate Equipment Manager.

"Within our company, most of those who are buying those smaller pieces look to us for buying decisions on what's worked well in other areas," Ferry said.

"From the lighter equipment manufacturers' standpoint, I think the best thing they can do for us is come to us with programs and assume they're going to try and get all of our buying on a national level, instead of dissecting certain areas."

Selling Point: Aftermarket Support

Contractors would like light equipment makers to offer more of the aftermarket support that big equipment makers offer, while realizing that light equipment makers may have trouble offering dealer service at the level of large equipment manufacturers because they are usually represented by dealers serving more than one company's product line. Light equipment makers might address this problem by offering parts and technical support directly to end users, Boh Brothers' Ryan noted.

<<Back to: "Preferred Suppliers": Rental companies see new partnerships with equipment makers

Spring 2001