Skid Steers Draw 25 Percent of First Cost in Resale Value

Sept. 28, 2010
Skid Steer Repair Costs as a percentage of purchase price

Twenty-five percent of owners of the largest skid steer loaders (capacities of 2,200 pounds or more) will spend more than 75 percent of a machine's purchase price on repairs.
A third of owners of 1,600- to 2,200-pound skid steers recoup 35 to 64 percent of their original purchase price when they sell their skid steers.
Managers who use radial tires put them on 77 percent of their skid steers.

Fleet managers spend only about 40 percent of a skid steer's original purchase price on repair parts and labor before replacing these ubiquitous utility machines. In fact, more than 21 percent of owners of 1,600-pound-capacity skid steer loaders and larger will spend only up to 25 percent of first cost on them, according to Construction Equipment's Reader Advisory Board.

When time comes to replace these skid steers, they draw about 25 percent of original purchase price in resale value. In fact, though, a third of owners of 1,600- to 2,200-pound machines nets 35 to 64 percent of purchase price, and a quarter of 2,200-pound and larger skid steers draw that much at resale.

Skid steers in the fleets of Construction Equipment's Reader Advisory Board — a hand-picked group of firms — work 35 percent of the time on asphalt and/or concrete — significantly more than any other type of surface. More than half works on rocky soil, and nearly a third works in demolition debris.

Despite the mean underfoot conditions, less than half of CE Advisors — 44 percent — invest in radial tires for their skid steers. Among those who do buy radials, about a quarter use radial tires on 75 percent or more of their skid steers, and more than 10 percent demand radials for virtually all of their skid steers.

Radial tires are significantly more common on the largest skid steers, with nearly 35 percent of owners of machines rated at 2,200 pounds reporting that half or more of their units ride on radials. Less than 20 percent of owners of 1,600- to 2,200-pound machines say they use radials on half or more of their fleets.

Half of skid-steer managers make sure tire inflation pressure is checked at least daily (20 percent) or weekly (30 percent). Eighteen percent of these CE Advisors admit that tire pressure is checked only at engine-oil changes, and 10 percent do not know when inflation pressure is checked.

Half of the CE Advisors who responded to the Skid Steer Survey characterize themselves as highway-and-heavy contractors, and 16 percent said they are general contractors engaged in both highway/heavy and general building work. Fleet values managed ranged from $5 million to over $100 million, with nearly half of the responses coming from firms with $25 million to $100 million worth of equipment.

Reader Advisory Board research is co-sponsored by Case Construction Equipment.