Public research content · marketplace inventory remains in prototype

Ownership

Heavy Equipment Total Cost of Ownership

Purchase price is only one part of equipment cost. Financing, depreciation, fuel, labour, maintenance, wear components, insurance and mobilization belong in the same model.

Purchase price is only one part of equipment cost. Financing, depreciation, fuel, labour, maintenance, wear components, insurance and mobilization belong in the same model.

Ownership costs

Include financing, insurance, storage and expected value loss over the holding period.

Operating costs

Model fuel, planned maintenance, repairs and wear items per annual operating hour.

Mobilization

Allocate transport and setup across the work the machine is expected to complete.

Stress-test assumptions

Use low, expected and high cases rather than one confident-looking number.