How to Choose the Right Equipment Rate Methodology

Understand the essential interactions of the Equipment, Operations, and Accounting teams in equipment management.

Understand the strengths and weaknesses of cost-tracking systems.

Michael Kelley and Mike Vorster interview Craig Gramlich from Lonewolf Consulting about his experience in equipment management on the Yellow Iron, Black Smoke podcast.

Capital weighting allows a fleet to more effectively measure utilization.

An efficient cycle of equipment management includes these four activities.

How an understanding of internal cost structures boosts efficiency and profitability.

Utilization rates enable fleets to more accurately compare equipment costs.

For most heavy-equipment contractors, achieving effective fieldwork hinges on just two essential elements: equipment and personnel. These two components share an interdependent relationship, with equipment relying on skilled operators to fulfill their functions, and people depending on the equipment to efficiently complete their tasks. If either of these elements is missing, no work in the…

Those who manage fleets of construction equipment are familiar with the concept of budgeting. It is a standard practice, usually based on last year’s performance. Zero-based or break-even budgets, however, provide an opportunity to streamline cost management, enhance accountability, engage in more productive conversations, and ultimately increase profits. A budget is simply a tool that…

Categorize the equipment in a fleet for proper management

A deeper look through the window of opportunity at replacement decisions.

Extending machine life makes sense if the economics of the sweet spot, including owning and operating costs, are understood.