EXPERT ADVICE
100% tax write-off giving an advantage
over certain depreciation limits when
purchasing,” White said. “Owning a
machine can affect the contractors bond-
ing capabilities, which can be critical for
certain large-scale projects. Costs for
rentals are many times put towards the
job cost and not towards the contractor’s
cap-ex budget. During the rental period,
most dealers cover any repairs needed,
not caused by normal wear and tear or
maintenance, as well as supporting the
contractor with a replacement machine if
the unit goes down and needs major re-
pair. Milling machines, especially ½ lane
and above, are extremely high production
units and require a steady diet of asphalt.
If the contractor does not specialize in
this type of repair or only has a small job,
renting is likely a better solution. If a con-
tractor is looking to get into the business,
renting may be the first step to purchas-
ing. Most dealers offer a ‘rental purchase
option’ (RPO), in which the customer
can ‘try it before you buy it.’ This pro-
vides minimal financial exposure to the
contractor and the chance to experience
the machine, dealer and/or manufacturer.
If the contractor rents for a few months
and determines it’s a proper fit, he can
usually apply a portion of the rental to the
purchase price of the unit.”
Considering adding asphalt milling to
the service mix, here are points to consid-
er from the experts:
• Make sure you understand acquisi-
tion and operating costs, and budget
accordingly.
• Have a properly trained operating
and maintenance crew.
• Buy the machine or milling attach-
ment best suited for your host carrier
and typical milling workload.
• Milling can be an efficient and cost
effective option.
• Find and go with equipment that is
easy to operate.
• The manpower needed to run the
equipment is often low, at most one or
two workers.
“Last but not least,” White added, “after-
sales support is critical. Whether it’s parts,
service/maintenance, or knowing what to
do when there’s a breakdown, aftersales sup-
port is likely the most important piece of the
puzzle. All machines will fail at some point,
and they usually don’t break while sitting
in the yard. When this happens on a mill-
ing and paving job site, it’s a domino effect
that can cost tens of thousands of dollars
per hour. Having skilled operators, proper-
ly trained mechanics (either with the con-
tractor, dealer or manufacturer) and parts
availability is all part of a solid plan that can
keep the operation running as smoothly as
possible.”
All the experts will likely agree that
jumping into the asphalt milling arena
doesn’t need to be a rough road if it is
planned and carefully thought out.
Jeff Winke is a business and construction
writer based in Milwaukee, Wisconsin.
He can be reached through jeff_winke@
yahoo.com.
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