Used Equipment Market Growing

Good deals to be found with used equipment, but do your homework before buying
By Gregg Hennigan, features writer

In the construction industry, so much of the focus is on new equipment. But the market for used equipment is growing.

Bob Martin, who follows these trends in his role as solutions manager at Vermeer, believes the availability of information in today’s world is the major reason for this.

“The Internet and social media are wonderful tools for researching pre-owned equipment,” he says. “Not only are people researching specific pieces of equipment, but they’re researching what to look for in specific pieces of equipment. And with social media, they can post questions and get responses about certain types of equipment or even sellers.”

Navigating the used equipment market can still be tricky, however. Buyers need to determine the quality of a piece they are interested in, the dependability of the seller, and whether buying something that’s already been owned really is the best option for them.

“It can be like buying a used car: Under the wrong circumstances, you may not know what you’re getting,” says Chad Van Soelen, general manager at the Vermeer Midwest dealership.

REASONS TO BUY USED

To continue with that comparison, contractors often consider used equipment for the same reason drivers do used cars. They can get a nice piece of equipment for a good deal.

Price is inarguably a big reason why contractors purchase pre-owned equipment. This is true for all types of companies, but Martin and Van Soelen say it can be a significant advantage for startup businesses.

“They usually do not have a lot of capital to put into equipment, and sometimes a new company can’t get financing from a lender on a brand-new piece,” Van Soelen says. “But they may have enough money to purchase a used piece to get the business started.”

Another reason contractors buy used equipment is it’s not an item they need on every job, but they need it frequently enough that owning it makes more sense than renting. A rockwheel for an underground contractor who occasionally has projects in hard rock is one example.

Availability also is a factor. Contractors sometimes get attached to certain models and features. As equipment is updated, the used market becomes the place they can still get the models they prefer.

Finally, the growing prevalence of aftermarket service contracts is increasing contractor interest in pre-owned equipment.

“One reason customers feel confident with new equipment is the manufacturer stands behind it with a warranty,” Martin says. “If they can feel close to that same degree of confidence with used equipment, they’ll absolutely go in that direction.”

One example of this is the Vermeer Confidence Plus® asset protection program. Vermeer equipment receives a detailed inspection from a Vermeer dealer technician and can provide a comprehensive parts and labor service contract for major components.

USED NOT ALWAYS A FIT

This is not to suggest that buying used equipment is always the right choice. Some of the reasons why are related to the benefits just mentioned. For instance, while some contractors prefer older models, those won’t have all of the updated features and technology found on the newest models, and adding them to a machine may not be cost-effective or even possible.

The same goes for a warranty on new equipment versus a service contract on used equipment. While there are growing service contracts options out there, in some cases the manufacturer may not have available a service contract for used equipment, or the contract’s coverage may not be as comprehensive as the contractor prefers.

“When a buyer is looking to purchase used equipment, having a service contract from the manufacturer can be a big benefit,” Martin says.

Another potential roadblock is that, although the pre-owned equipment market is an international business, some equipment is off limits to overseas buyers. For example, emission regulations can limit which countries some equipment can be operated in.

WHAT TO LOOK FOR

Contractors should be thorough when looking at used equipment. First and foremost, know the item’s history. Who owned it? Was it properly serviced? Has it been modified? How would the seller rate its condition? How did they use it? If it was a horizontal directional drill, for example, was it primarily used in softer ground conditions, or was it used on rock bores? Think of the car analogy again — the wear and tear of city miles versus highway miles.

Ask to see service records. They may show not only what’s been done (or not done) to the machine, but also if there is a chronic issue.

“There should be no reason that you should not be able to walk up and say, ‘Hey, can I see all of your service invoices for this machine for the last 12 months?’” Martin says.

Another tip is to get an independent assessment by a trained technician.

There are also potential warning signs you can look for on a machine. One thing to watch out for is a new paint job. It may be covering up damage or trying to distract the buyer.

“Are you really getting a quality piece or are you getting something that’s just been repainted that has a lot of internal issues?” Van Soelen says.

Get under the machine and look for signs of unusual wear on the frame, weld joints and other places. The powertrain is another big one that deserves attention.

Then, of course, start up the machine and insist on seeing it in action. Make sure it functions as it should. Listen to it. If something sounds off, that may be a sign something is not right.

SOURCES OF EQUIPMENT

Who you’re buying from is another important part of the evaluation process.

“The biggest thing to look for is to make sure you’re buying from someone you trust,” Van Soelen says.

Sources of used equipment include local dealers, auctions and fellow contractors. There are pros and cons with each of these.

Buying directly from a contractor means you’ll be dealing with someone who should have intimate knowledge of the machine’s history. The question is how forthcoming they are with that information, especially if it’s negative. And in Martin’s experience, it often costs more to buy from a contractor because that person has an emotional attachment to the machine.

“They’re proud of that piece of equipment and can tell you stories about how it did amazing things for them, and they kind of lose sight of the fact that it’s one of many other pieces of equipment like it on the market,” he says.

Also, if an item is being sold online, such as through Craigslist or eBay, the buyer may have to evaluate it based on photographs selected by the seller.

That also may be true for auctions, as more and more online auction sites proliferate. At in-person auctions, a potential buyer usually can inspect the equipment, but they probably won’t be able to demo it.

Martin says auctions have a reputation for buyers walking away with great deals, but as auctions have become more mainstream, the prices have climbed. Also, people often end up paying more than they were planning to if there’s competition for a piece.

“It’s emotional bidding,” Martin says. “Nobody likes to lose.”

Auctions also can create doubt on the part of a buyer. Why, one may wonder, is a piece of equipment being sold at auction rather than at retail? Could that be an indication something is wrong with it? Van Soelen says that, at the dealer level, he has lots of experience with repairing equipment someone got at an auction.

“They may save money on the initial price, but a lot of times, they could end up putting more money in it in repairs because it came from an auction where it wasn’t checked out as extensively as it should have been,” he says.

Then there are dealerships. They don’t always have a large selection of pre-owned equipment, but if they are part of a dealer network, they may be able to source a piece of equipment from another location. Dealers also can offer support after the sale. They have in-house technicians who are very familiar with the equipment.

Demos are more likely with a dealer. Van Soelen says potential customers can come to his yard and test out a piece of equipment.

“We have space where a contractor can operate a drill or a trencher,” he says. “We keep a stack of wood here so someone can run it through a brush chipper or a grinder.”

Some people may be reluctant to buy used equipment, either because of a bad experience or general apprehension. But with the availability of information and the maturation of the market, now is the time to reconsider.

“Before it may have felt like the deep dark corners of the marketplace,” Martin says, “but now it’s a very viable opportunity for contractors.”

Vermeer, the Vermeer logo, Equipped to Do More and Vermeer Confidence Plus are trademarks of Vermeer Manufacturing Company in the U.S. and/or other countries.

© 2016 Vermeer Corporation. All Rights Reserved.

LMK Distributes, Maintains and Services Schwalm Robotics

Ottawa, IL, April 4, 2016 – LMK Technologies is proud to be one of the North American LMK Distributes, Maintains and Services Schwalm Roboticsdistributors for Schwalm Robotics, the premier robotic system for use in trenchless sewer rehabilitation. For 8 years, LMK has been selling, servicing and maintaining Schwalm robots from its Ottawa, Illinois corporate headquarters.

With over 80 robots in service in North America, the Schwalm robotic system and components are considered to be one of the most versatile robot systems in the industry. Recently, Kenny Cochrane, LMK Robot Specialist, moved to Greenville, SC to open Schwalm USA in order to establish a North American arm of Germany-based Schwalm Robotics.

The German engineered Schwalm robots can significantly save time when compared to traditional winch-in-place robotic cutter systems and are not only faster and extremely more efficient, but the capability of the robots has advanced the pipe renovation industry in North America to a level that offers truly trenchless options that until now were simply unavailable. They effectively and completely reinstate sewer service lateral connections from one manhole access point at one time and the remotely operated cutting tools are engineered to remove protruding taps, clean, trim offset joints and cut open CIPP turnbacks. These robots have also been purchased specifically for use in potable water lines and have shown positive results.

The Talpa 1330 robot operates in 6 inch to 12 inch lined pipes, while the Talpa 2060 operates in 8 inch to 24 inch lined pipes. Each robot is equipped with an interchangeable color, pan/tilt, zoom or focus camera and a lens washing device, ensuring that the operator has a clean, clear view of the work being performed. Each self-driven robot system can easily adapt to a mainline camera system which ultimately saves the buyer money.

Josh Morris, who is entering his third year at LMK, has assumed the position of Robot Specialist and is available 24/7 to troubleshoot and answer questions regarding repair and maintenance. Robots and robotic components can be serviced at LMK’s Ottawa location with efficient turnaround service.

To learn more about Schwalm robots and components, please contact LMK at 815-640-9302.

LMK Technologies, a world leader specializing in trenchless methods to renew lateral sewer infrastructure, has more than one hundred U.S. and foreign issued patents for its advancements in trenchless technology. Headquartered in Ottawa, IL since 1993, LMK serves the municipal and residential markets through a network of licensed and certified contractors. For more information regarding LMK, please visit www.lmktechnologies.com, call 1-815-640-9302 or email info@lmktechnologies.com.

Photo: Josh Morris, Robot Specialist

GSSI Highlights Profiler™ EMP-400 Conductivity Meter for Geological and Environmental Assessment

GSSI, the world’s leading manufacturer of ground penetrating radar (GPR) equipment, GSSI Highlights Profiler EMP400 Conductivity Meter for Geological and Environmental Assessmentannounces the availability of its Profiler™ EMP-400 multi-frequency electromagnetic (EM) conductivity meter for use in geological investigation, site assessment, ground water investigation, and other environmental assessment applications. With a user-friendly design and unmatched signal stability, this powerful electromagnetic induction tool allows for reliable and accurate examination of soil conditions and subsurface targets on both small and large scale sites.

“The GSSI Profiler EMP-400 is a valuable tool that provides our clients with more efficient and comprehensive geophysical surveys. We have been impressed with its simplicity to deploy in the field and the data it outputs to create an easy to understand sub-surface image of our geophysical survey areas,” said Fletcher S. Thompson of E.F. Thompson Geotechnologies, Inc.

Featuring a lightweight, environmentally sealed EM instrument and handheld interface with integrated GPS, GSSI’s Profiler offers users premium mobility and ease of transport. Advanced software features offer the user several options to view the data in real time, thereby enhancing survey efficiency. For instance, the “freeway” collection mode allows the user to collect data by using GPS coordinates as reference points rather than setting up a physical grid on the ground. The Profiler then provides real-time data output via a color-coded map, which enables the user to quickly and easily identify areas of interest on site.Additionally, the Profiler stores files in a Microsoft Excel format in internal memory for later access.

The Profiler EMP-400 is commonly used in concert with GSSI’s UtilityScanÒGPR system, an industry leader in environmental assessment. The Profiler EMP-400 provides a fast and effective survey method for large-scale environmental assessments, such as UST and drum locating, plume mapping and landfill delineation. Users can employ the Profiler as a quick reconnaissance level survey tool to narrow down areas of interest on large survey sites, and then use the UtilityScan GPR system to concentrate on anomalies. Additionally, GSSI offers unlimited, free training for 2 years, free lifetime support, and a 2 year warranty with the Profiler product.

About GSSI

Geophysical Survey Systems, Inc. is the world leader in the development, manufacture, and sale of ground penetrating radar (GPR) equipment, primarily for the concrete inspection, utility mapping and locating, road and bridge deck evaluation, geophysics, and archaeology markets. Our equipment is used all over the world to explore the subsurface of the earth and to inspect infrastructure systems non-destructively. GSSI created the first commercial GPR system nearly 45 years ago and continues to provide the widest range and highest quality GPR equipment available today.

EPA Provides the U.S. Virgin Islands $8 Million for Water Infrastructure Projects

(New York, N.Y. – May 2, 2016)  The U.S. Environmental Protection Agency has allotted $8,249,000 to the United States Virgin Islands to help finance improvements to water projects that are essential to protecting public health and the environment. The funds will primarily be used to upgrade wastewater systems and drinking water systems throughout the territory.

“Clean drinking water and proper wastewater treatment are fundamental to protecting people’s health, but aging water infrastructure needs to be upgraded and repaired,” said EPA Regional Administrator Judith A. Enck. “This funding will help the U.S. Virgin Islands upgrade their drinking water and sewage treatment systems, both of which are imperative for healthy communities.”

The Clean Water State Revolving Fund program, administered by the Virgin Islands Department of Public Works, was allotted $4,129,000. The program provides grants for water quality protection projects to make improvements to wastewater treatment systems, control pollution from rain water runoff, and protect sensitive water bodies and estuaries.

The Drinking Water State Revolving Fund program, administered by the Virgin Islands Department of Planning and Natural Resources, was allotted $4,120,000. The program provides grants to finance improvements to drinking water systems, with a particular focus on providing funds to small and disadvantaged communities.

Since 1989, the EPA has awarded $78,424,380 million to the U.S. Virgin Islands through these programs, which are funded annually.

For more information on the Clean Water State Revolving Fund program, visit https://epa.gov/cwsrf

For information on the Drinking Water State Revolving Fund program visit https://epa.gov/drinkingwatersrf

Follow EPA Region 2 on Twitter at http://twitter.com/eparegion2 and Facebook at http://facebook.com/eparegion2

HammerHead® Same Path™ Pipe Slitting Technology Wins NASTT’s Award for Innovation

LAKE MILLS, Wisc.– The North American Society for Trenchless Technology (NASTT) has
4-28-HH-gas_slitting_extraction_cage (2)chosen HammerHead Trenchless Equipment’s Same Path™ gas line slitting technology for recognition as an industry-leading innovation in 2016. Each year NASTT judges choose just two products contributing to the advancement of trenchless solutions to receive its Abbott Innovative Product Award. Judging and presentation take place during the annual NASTT No-Dig Show, held this year in Dallas, Texas, March 20 through 24.

HammerHead Same Path Gas Line Slitting Technology is a tooling system for replacing natural gas distribution pipe that cannot be replaced by traditional bursting methods. The tooling is designed for use with the HammerHead line of cable winches.

HammerHead Trenchless Equipment, a Charles Machine Works company, originally designed
4-28-HH-gas_slitting (2) the tooling at the request of Ditch Witch in California. Mike Anderson, Ditch Witch Bay Area, Central & Southern California president, and two in-house HammerHead equipment specialists, Kevin Campbell and Cameron Zoucha, had identified a need for better gas line slitting technology. HammerHead engineering worked with them to develop the tooling and methodology successfully used in the field by the Ditch Witch in California group since its introduction.

Anderson said, “We needed to help a customer frustrated by existing tooling that tended to either bunch up the pipe or high-center and get stuck. We turned to HammerHead engineering, which has a history of developing solutions for unique problems.”

HammerHead Same Path tooling is designed to overcome those issues while simultaneously splitting old pipe and installing new pipe.

“Usually you expect tool design to come as a result of trial and error,” Anderson said. “In this case it was trial and success, an effective product within weeks of our initial request that surpasses any gas line slitting system I’ve seen to date.”4-28-HH-extraction cage with winch_SM (2)

HammerHead Same Path Gas Line Slitting Technology is designed for replacing half-inch to 4-inch natural gas distribution pipe and may also be used to decommission inactive gas lines that will be left in the ground. The unique slitting process follows the existing pipe path, reducing the likelihood of contact with other utilities.

Same Path tool string components include expanders, connectors, and slitting tools with replaceable hardened-steel blades, breakaways and beacon housings. Used in conjunction with the HammerHead line of cable winches and Subsite® electronics, the tooling’s string design permits virtually trouble-free pullback in PVC, HDPE, MDPE and Aldyl-A pipe and limits torque on new MDPE or HDPE replacement pipe to within approved manufacturer’s standards.

Same Path gas line slitting technology is available from HammerHead Trenchless Equipment or from authorized dealers worldwide. Authorized dealers can be found online at www.hammerheadtrenchless.com or by calling 800.331.6653. (International: + [1] 920.648.4848).

Photo 1:HammerHead® Same Path™ gas line slitting technology is a tooling system specially designed to replace natural gas distribution pipe lines that are not good candidates for traditional bursting methods.

Photo 2:Same Path™ gas line slitting technology is designed for use with the HammerHead® line of HydroGuide® cable winches. A HydroGuide winch’s self-deploying downrigger simplifies setup time and places hydraulic pulling power directly in line with the slitting operation.

Photo 3:The Same Path™slitting head has been retrieved all the way back to the extraction cage, never having left the path of the in situ pipe. The pipe line is now unequivocally decommissioned or, if new product pipe has been attached to the slitting head, it is replaced in the same smooth operation.

Aegion Corporation Announces Frank Firsching as New President of Infrastructure Solutions Platform

ST. LOUIS, MO, April 19, 2016 — Aegion Corporation (“Aegion” or the “Company”) (Nasdaq
Bo Botteicher Frank Firsching for web Global Select Market: AEGN) today announced that Frank Firsching has been named the President of its Infrastructure Solutions platform and will have direct responsibility for the overall growth and profitability of the North America and European Insituform business, Underground Solutions, Inc. and Fyfe/Fibrwrap North and South America. In 2015, this business reported over $550 million in revenues.

Charles R. Gordon, Aegion President and CEO said, “I have known and worked with Frank for many years and have full confidence in his ability to lead the Infrastructure Solutions platform. I am looking forward to the contributions he will make to the Infrastructure Solutions platform and to the Aegion senior leadership team.”

Mr. Firsching has been with Underground Solutions since 2006 as part of its executive leadership team. As General Manager, he led sales, marketing, operations, engineering and technology development. Aegion completed the acquisition of Underground Solutions in February 2016.

Mr. Firsching has almost 30 years of experience in leadership positions in industrial, manufacturing and water and wastewater companies, including 14 years at USFilter Corporation. As President, Water & Wastewater Systems Group for USFilter from 2001 to 2006, Mr. Firsching was responsible for the profit & loss of the $1 billion business group. His responsibilities included overall business strategy, M&A, global sales & marketing, global operations and R&D. He graduated from the University of Virginia with a Bachelor of Science degree in Mechanical Engineering and from the Wharton School at the University of Pennsylvania with Masters of Business Administration.

Richard (Bo) Botteicher has been named General Manager for Underground Solutions and will be responsible for all operations, sales and marketing for the business. Mr. Botteicher was most recently the Vice President of Sales, Western Region, at Underground Solutions. Prior to that position, he spent nearly 10 years as a senior product engineer at Underground Solutions, specializing in technical support for projects, sales initiatives, operations, research and testing associated with Fusible PVC® pipe and its use. Mr. Botteicher received his Bachelor’s degree from Bucknell University in Lewisburg, Pennsylania and is a Professional Engineer in Colorado.

About Aegion Corporation
Aegion Corporation is a global leader in infrastructure protection and maintenance, providing proprietary technologies and services: (i) to protect against the corrosion of industrial pipelines; (ii) to rehabilitate and strengthen water, wastewater, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures; and (iii) to utilize integrated professional services in engineering, procurement, construction, maintenance and turnaround services for a broad range of energy related industries. More information about Aegion can be found on our internet site at www.aegion.com.

About Underground Solutions, Inc.
Underground Solutions, Inc. is a leader in water and wastewater infrastructure and process technologies by providing infrastructure technologies for water, sewer and conduit applications. Underground Solutions Fusible PVC® products include, Fusible C-900®, Fusible C-905® and FPVC®, which contain a proprietary PVC formulation that, when combined with its patented fusion process, results in a monolithic, fully-restrained, gasket-free, leak-free piping system. Fusible C-900® and Fusible C-905® both comply with the AWWA standards AWWA C900 and C905, respectively and are certified to NSF 61. More information about Underground Solutions, Inc. can be found at www.undergroundsolutions.com.

Aegion®, Underground Solutions®, Fusible PVC® and the Aegion® logo are the registered trademarks of Aegion Corporation and its affiliates.

Photo: Richard “Bo” Botteicher and Frank Firsching at NASTT’s 2015 No-Dig Show