Stump Grinder Golden Years-How to Determine When a Stump Cutter's Dues are Paid and Retirement is Near.

 

For some, important milestones are marked at a first car, high school graduation or a first job, but compact equipment owners and operators mark their own milestones differently – the first time operating a mini excavator, a skid steer’s first oil change or the purchase of a brand new stump grinder. The early years with a new stump grinder are often exciting and as the years pass by, the owner/operator and stump grinder relationship falls into that reliable comfort zone, like a trusted old friend. Then the day comes where you realize the stump grinder isn’t as young as it once was. It has trouble chomping through tree remains that it would have once shredded in seconds.

Of course, we all want to get the most out of any equipment purchase and with a little care, you can extend the life of your equipment to enjoy the maximum return on your investment. However, there are times when you just need to say when. With proper maintenance, a stump cutter can provide years of productive service. Even so, production may diminish as the unit ages.

According to Chris Nichols, environmental sales manager with Vermeer Mfg. Co., the life cycle of a stump cutter can vary greatly depending upon its care and working conditions.

"It’s not uncommon to find a five-year-old or older stump cutter still in service and productive on the job," says Nichols. "On the other hand, there are machines out there that, based on everyday working conditions and maintenance, will be removed from service after just two or three years."

Some owners prefer a three-year trade cycle to guarantee a fresh fleet. Others like to keep a machine longer and therefore take special care of their machines and even invest in component rebuilds if necessary.

Tell Tale Signs of Senility

Signs of a stump grinder’s deterioration aren’t as obvious as memory loss or driving slowly on a busy street. Clues of stump grinder senility come in the form of decreased productivity and increased fuel usage. However, Nichols recommends that contractors first evaluate their business to determine if it is time to upgrade.

"I encourage contractors to evaluate their business as they would evaluate their fleet," says Nichols. "What types of work have you been doing? What type of work will you be doing in the future? What applications are you known for? What applications would you like to pursue?"

Nichols suggests that a contractor consider what percentage of their work involves right of way, site clearing or residential stump removal and how much work is done in open areas vs. confined backyard applications. Some units can work in both applications and others are better suited for one or the other.

This evaluation will help the contractor better understand his or herstump cutter fleet while providing valuable information about stump cutter usage and if the model currently owned is the right machine for his or her needs. For example, too small of a unit may not be efficient, if you focus on large stump removal contributing to increased operating costs and potentially lowering net income. The bottom line: If the wrong tool is taken to the job, you are likely to be less productive and efficient.

Out with the Old

Generally, there are two types of contractors – those who make a one-time capital purchase and plan to keep the unit for 10 to 15 years and those on a three-year trade cycle. By trading on a regular three-year cycle, contractors can routinely upgrade their fleet with new technology and productivity enhancements.

Those contractors who make a one-time capital purchase should monitor their fleet to determine how each unit is performing and if the contractor should consider trading.

  • Productivity: Are you working on jobs that take longer than similar jobs from the previous season? Is the unit using more fuel? Do the teeth dull more quickly? Is the quality of the chips and shavings different?
  • Maintenance: Have maintenance costs and repair frequency increased beyond the recommended maintenance items? Does your stump cutter require major component rebuilding?
  • Company Growth: Has your company outgrown the current unit? Could a larger or second unit help increase your productivity?
  • Application Change: Are you using the unit for new work applications that differ from when you originally purchased the unit? What additional markets could you serve if you had a different machine? Would the increased income from these new market applications justify the cost of a new unit?
  • Technology: What new stump cutter technology is available? Can this technology help you be more productive on the job?

In a perfect world, contractors would develop a business plan that includes a product life cycle management plan. This plan would identify timeframes to rotate or purchase new equipment based on hours, days or miles of use to get the maximum return on investment from each piece of equipment.

Most contractors get into the stump cutting business without a plan and this can work well, says Nichols. In these cases, it is best to pay attention to what production you can get with your older equipment compared to a new stump cutter. Then decide if the money you are earning with the older stump cutter is less than what you could be earning with a new unit due to increased productivity.

The stump cutter industry has changed considerably over the past several years and new technology may help reduce fuel consumption and wear item cost. These enhancements can also help improve productivity and may add to the entire life cycle of the unit. It’s best to compare brands and demo several units to help you decide what makes the most sense for your business.

On Golden Stump

A good secondary market exists for used stump cutters and that value can be applied to the purchase of a new unit. Dealers are always looking for older units, so you may have an opportunity to trade the unit and apply these funds toward the purchase of a new unit. You also have the option of selling the unit outright.

Your decision to trade or sell should be based on where you can get the most value for an older unit. In addition, consider the fact that there may be tax advantages for trading in your older unit.

The bottom line – Nichols encourages contractors to decide on upgrades based on the future direction of their company and what makes the most financial sense. Although it may be difficult to let go of that age-old stump grinder friend, it’s often the best to thank it for its years of hard work and let it live out its remaining years in peace before it rusts and decays.

Greg Ehm is a technical writer for Two Rivers Marketing Co., Pella, Iowa.