Equipment Type

Construction Equipment Executive Institute

Learn the fundamentals of fleet management from our collection of articles and videos. The best in asset management for the construction equipment professional.

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Equipment Executive Articles

Using the sample data for Annual Costs contained in the table below, these cost models allow for evaluation of various life cycles.

The difference between annual cost and full life cycle or life to date (LTD) cost is one of the most difficult things to grasp when it comes to understanding equipment costs. This is due to the fact that we have been trained to focus on next year’s cost and next year’s budget, which causes us to take a short-term view of cost. The snag is, you buy a machine for the long term.

Most construction companies have an equipment department or division within the overall organization. This responsibility center builds a specialized equipment team, gives it clearly defined and measurable objectives, and focuses management attention on a critical part of the business.

In my February 2011 column, I suggested that the number of equipment-manager positions was declining.

We constantly work to balance the cost of owning and operating our fleet with the revenue earned by charging jobs for the equipment they use. It occupies a large portion of every day.

The AEM/AEMP telematics standard is a major step forward. Many people have worked long and hard to reach this point, and we should all be thankful for their efforts.

Equipment-using organizations often use their fleet to promote their brand. The name is on both sides of the equipment; their logo identifies the organization. Senior managers get quite involved and particular when it comes to how the company brand is portrayed.

There are pros and cons to painting equipment with a unique color scheme.

Equipment is a capital-intensive business, yet capital is a scarce and expensive resource. That is why so much of what we do is focused on capital expenditure (capex) and the capital-expenditure budget.

This structured process pulls together the required information in order for it to be used to produce excellent equipment rates.

Setting the internal charge-out rate is probably the most difficult, contentious and important task that an equipment manager needs to perform. Let’s look at each of those words to better understand the situation and then attempt to develop a process that helps.

C.E.M.P LEARNING MODULES

How to make your organizational structure work for you.

Understand the differences and use them to improve cost control.

Learn the six principal functions of equipment management.

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