Current News

Oktober 2007

Magazine: International Construction
Article as PDF: Performing Parts

Performing Parts

Investing in remanufactured consumables as opposed to buying new parts for construction equipment is becoming increasingly common. Original Equipment Manufactures’ (OEMs) claim these parts are less expensive for the customer and often provide improved quality compared with new versions. Becca Wilkins reports.

It is the view of some original equipment manufacturers (OEMs) that investing in will-fi t or non-genuine parts will result in less reliable and ineffi cient construction machinery. In addition, they claim the problem of counterfeit parts circulating in the construction sector is damaging the reputation of the whole industry.

Michael Stevens, senior remanufacturing marketing consultant for Caterpillar in Europe, Africa and the Middle East (EAME), said the use of non-genuine parts reduces the resale value of the machine. He added that if non-genuine parts are used there is no guarantee with regard to the physical specifi cations, the material used or the heat treatment of the component.

“Th is means that there is a high risk that the normal life cycle of the component may not be achieved and any cost savings associated with the use of these parts may have to be measured against the cost of decreased machine reliability,” he said.

Speaking for Volvo Construction Equipment (CE), Goran Lindgren said the issue of counterfeit parts in the construction industry is becoming a bigger issue as the company grows its market shares. But he added the company prefers to see this as a challenge rather than a problem.

Mr Lindgren said the technology used in Volvo CE machines is becoming increasingly complex, enabling extended maintenance intervals for the customer.
He said, “It has become more important to use original parts. Th ey are engineered and tested to give optimised functionality and using original parts is proven to give longer lifetime and more uptime.”

Thomas Neumann, managing director, sales and marketing, for consumables and components supplier, Assem Audi said, “Will-fi t is probably not the best quality and OEM costs more than will-fi t. If you have a machine, which is less than three years old, I would recommend that you pay a little more for OEM parts but if you have a very old machine, which is more than ten years old, you can take will-fi t for less money.”

He added, Assem Audi sources genuine and OEM parts only and does not deal with will-fi t spares. Speaking about counterfeit parts used in construction equipment he said these can be potentially dangerous for the operator, but more importantly can damage the sector’s reputation. He said the profi ts made by producers of counterfeit parts are enormous, adding that in many cases only an expert can decipher whether a part is genuine or counterfeit. “To be on the safe side you must know and trust your supplier – but this confi dence takes years to build up,” he said.


Market challenges

Mr Lindgren said the current market for consumables in Europe is strong and driven by an improving construction industry, mainly in Central and Eastern Europe (CEE). He added there is a shortage of certain components due to high demand, but said for after sales this is overcome by remanufacturing programmes. With regard to shortages of steel in the market, he said that good forecasting and planning has minimised the shortage problem for Volvo CE.

“Th e price increase has the same infl uence on all OEMs. We can see a turning point in pricing, one of the reasons being that China is now exporting not importing steel,” he said. Mr. Neumann said that the number of consumables and component suppliers around the world has grown, which means that demand has also grown, indicating room for more growth.

He said, “Manufacturers are not able to serve the market because of the shortages of steel and tyres. Th ey are having a big problem right now and sales are aff ected. Even we had some problems sourcing special types in the past, but our situation has changed in the last three months. But generally it will take some more time to satisfy the global demand for these products.” ...

To read the complete article, please download the PDF.

September 2007

Magazine: Construction Europe
Article as PDF: Parts of the action

Parts of the action

The trend towards remanufacturing consumables is becoming increasingly popular with both manufacturers and their customers. Many original equipment manufacturers (OEMs) claim these parts are less expensive than new ones and are of the same, if not superior quality. BECCA WILKINS reports.

It is the view of some original equipment manufacturers (OEMs) that investing in will-fit or non-genuine parts will result in less reliable and inefficient construction machinery. In addition, they claim the problem of counterfeit parts circulating in the construction sector is damaging the reputation of the whole industry.

Michael Stevens, senior remanufacturing marketing consultant for Caterpillar in Europe, Africa and the Middle East (EAME), said the use of non-genuine parts reduces the resale value of the machine. He added that if nongenuine parts are used there is no guarantee with regard to the physical specifications, the material used or the heat treatment of the component.

“This means that there is a high risk that the normal life cycle of the component may not be achieved and any cost savings associated with the use of these parts may have to be measured against the cost of decreased machine reliability,” he said.

Vice president, marketing and sales for Volvo Construction Equipment (Volvo CE), customer support, Goran Lindgren said the issue of counterfeit parts in the construction industry is becoming a bigger issue as the company grows its market shares. But he added the company prefers to see this as a challenge rather than a problem. Mr Lindgren said the technology used in Volvo CE machines is becoming increasingly complex enabling extended maintenance intervals for the customer.

He said, “It has become more important to use original parts. They are engineered and tested to give optimised functionality and using original parts is proven to give longer lifetime and more uptime.”

Thomas Neumann, managing director, sales and marketing, for consumables and components supplier, Assem Audi said, “Will-fit is probably not the best quality and OEM costs more than will-fit. If you have a machine, which is less than three years old, I would recommend that you pay a little more for OEM parts but if you have a very old machine, which is more than ten years old, you can take will-fit for less money.”

He added, Assem Audi sources genuine and OEM parts only and does not deal with will-fit spares. Speaking about counterfeit parts used in construction equipment he said these can be potentially dangerous for the operator, but more importantly can damage the sector’s reputation.

He said the profits made by producers of counterfeit parts are enormous, adding that in many cases only an expert can decipher whether a part is genuine or counterfeit.

“To be on the safe side you must know and trust your supplier – but this confidence takes years to build up,” he said.

MARKET CHALLENGES

Mr Lindgren said the current market for consumables in Europe is strong and driven by an improving construction industry, mainly in Central and Eastern Europe (CEE). He added there is a shortage of certain components due to high demand, but said for after sales this is overcome by remanufacturing programmes. With regard to shortages of steel in the market, he said that good forecasting and planning has minimised the shortage problem for Volvo CE.

“The price increase has the same influence on all OEMs. We can see a turning point in pricing, one of the reasons being that China is now exporting not importing steel,” he said.

Mr Neumann said that the number of consumables and component suppliers around the world has grown, which means that demand has also grown, indicating room for more growth.

He said, “Manufacturers are not able to serve the market because of the shortages of steel and tyres. They are having a big problem right now and sales are affected. Even we had some problems sourcing special types in the past, but our situation has changed in the last three months. But generally it will take some more time to satisfy the global demand for these products.” ...

To read the complete article, please download the PDF.

September 2006

Magazine: Construction Europe
Article as PDF: Wears and Spares

Wears and Spares

Choosing the right replacement parts and consumables can help prolong the working life of your construction equipment. However, the proliferation of component and consumables suppliers in recent years means there are lots of suppliers of varying quality to choose from. RICHARD HIGH reports.

ACCORDING TO THOMAS GILLES, MANAGING director of Germany-based component supplier Assem Audi, the number of component and consumables suppliers around the world has grown considerably in the last few years.

“You can now type component or consumable supplier into an internet search engine and find hundreds of suppliers. However, the trick is finding one you can trust and who can supply genuine parts, with all the relevant documents to support their claims, from a supplier that can guarantee their quality,” said Mr Gilles.

The proliferation of non-genuine spare parts, or third party suppliers offering “will fit” parts means original equipment manufacturers (OEMs) are keen to highlight the benefits of using genuine branded products. With their exact fit and function, manufacturers claim that the only way to keep a machine’s original characteristics when it comes to reliability, comfort, performance and operating costs is to use original parts.

According to Mats Gårlin, vice president of marketing and sales for customer support, Volvo Construction Equipment (VCE), “Quality is crucial. Genuine parts have been designed and developed with the machine itself to act as a system of parts, rather than individual parts operating in isolation.

“The only way to keep a machine’s original characteristics is to use original parts. Of course you may find some grey market parts that are close to ‘genuine parts’ quality, but grey products are sold on price. To do that you have to cut corners and the vast majority are low quality, sometimes dangerously so,” said Mr Gårlin.

A point echoed by breaker manufacturer Montebert’s marketing manager Martin Dizière, who told CE that while availability is “the key success factor”, it’s also important to use genuine parts.

“Using pirated parts can reduce operating costs in the short-term, but in the long-term it will only increase downtime, not just of the attachments, but of the whole machine,” said Mr Dizière.

However, Mr Gilles is quick to point out that some third party suppliers do offer “genuine parts” at a substantially lower cost. “An OEM will usually use a lot of parts manufactured by a sub-manufacturer. We cross reference the manufacturer’s part numbers with the sub-manufacturer’s part number and then deal directly with them.

Caterpillar’s new K Series Tooth System includes a twist-on mounting, a lower profile and is available in 11 tip variations.

“While we are in direct competition with the OEMs the ability to trace the sub-manufacturers, coupled to the high volumes and high turnover we deal in is what allows us to offer a lower price to the end-user,” said Mr Gilles.

REMANUFACTURING

However, genuine or grey parts are not the only options available to construction equipment users when looking to replace wear parts or other consumables. Many OEMs now offer factory-remanufactured components, and the choice available to end-users is expanding rapidly.

Components range from complete engines to starter motors, turbocharger units, fuel injector pumps and air conditioning compressors. Operated on an exchange basis, worn parts are replaced with completely overhauled units.

Not only are the parts reconditioned like new, they are modified to incorporate any technical improvements that have happened since they were made. According to Paul Ross, Caterpillar’s European market segment director, because remanufactured parts can be upgraded to include the latest advances in technology, they may actually perform better than they did originally. ...

To read the complete article, please download the PDF.

August 2006

Magazine: African Review
Article as PDF: Construction News
Assem Audi Lottery: Win your ticket for the Bauma 2007

June 2006

Assem Audi celebrates 30. anniversary!


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