RM Online - What you need to know about BACKHOES

Backhoes are a must for any rental center that's serious about serving the construction market. Backhoes are used in so many different ways - you'll find one on just about any kind of construction job. As someone once said, "Every contractor has to have a backhoe, whether he needs one or not."

Backhoes are used not only by contractors of all types but also by utility companies, city and county public service departments, state and federal agencies, highway and street crews and park maintenance departments.

Companies and organizations that own backhoes use them so much that they can't be without them, say, when the workload increases or a machine is in the shop.

And sometimes that contractor needs even more than he has. Here's where you come in.

Backhoes can make excavations for just about any purpose. They dig trench to install new utility lines and uncover buried pipe, cable and underground storage tanks when repairs are necessary. They dig footings for foundations and other work to prepare sites for construction.

Specialized buckets are available for all kinds of digging requirements. Backhoes are used to load and unload equipment on and off trucks and crane heavy objects around the job site.

Backhoes span a broad range of configurations and size classes.

The most popular backhoe package is the venerable tractor-mounted loader-backhoe combination. This versatile machine can dig, move and load earth, gravel and other materials, and backfill, too.

If there is an all-purpose piece of construction equipment, the tractor-mounted loader-backhoe has to be it. Everybody just calls the machine a "backhoe," even though it does have a loader bucket in front. Purists would say that only the wheel-mounted TLB can really lay claim to the term "backhoe," although the backhoe attachment mounted on such mainframes as skid-steer loaders, trenchers, trucks and even four-wheel-drive loaders can properly be referred to as a "backhoe," too. Both versatility and the revenue a machine produces can be increased by adding such a backhoe attachment. Of course, capabilities depend on the host machine and size of the attachment, and they're less productive than an integrated backhoe of comparable size, but they are adequate for many applications.

The most widely used loader-backhoe models are those that dig in the 14- to 16-foot range and have loader bucket capacities of up to about 112 cubic yards. They are typically powered by engines of between 70 and 90 horsepower.

Larger machines can dig deeper and have greater lift and reach capacity for high production in difficult conditions, but that market is more specialized; the size of market goes down as the size of machine goes up.

Compact models are growing in popularity. Small machines with digging depths of less than 14 feet can handle light-duty work; they're extremely maneuverable and can work in small spaces where larger equipment can't go. Compact models have become popular with rental stores because their small size doesn't intimidate homeowners, who also find the lower rental rates attractive.

Hydraulic manifolds allow you to hook up scores of tools and run them off the machine's hydraulics. That gives the backhoe real versatility.

"The loader backhoe is one of the most versatile types of equipment available and, as a result, is very popular with customers working in a variety of applications," says Rusty Schaefer, marketing manager for Case Corp., Racine, Wis.

"For rental centers, it is a good revenue-generating piece of equipment that, when packaged creatively with the right attachments and product support, can be marketed in any part of the country."

Optional buckets, extendable dippersticks, accessories and attachments equip a backhoe for many specialized jobs. Breakers, tampers, post-hole diggers, trash pumps and scores of other attachments add value to the backhoe and increase rental income.

Customers who rent backhoes also often need many other types of equipment and tools, as well. Questioning customers about their projects opens the door to additional rentals and sales.

Evaluating backhoe capabilities

Counter and yard personnel need to be thoroughly familiar with the product because they are most directly responsible for customer satisfaction, which begins with helping customers match the right equipment to the job. Specifications renters look at include maximum digging depth, bucket size, lifting capacity, boom reach and engine horsepower. But many don't even know about all the attachments that can be added to a backhoe for specific applications.

Depending on job conditions, the host vehicle's drive system may be a factor to consider, too.

For example, if the backhoe has a mechanical front-wheel-drive system that can be actuated with a foot pedal, you can add the extra power you need just at the right moment to hit a stockpile low and hard, and get a full bucket the first time, without having to jiggle the hydraulics as you batter away at the pile. Front-wheel drive is also valuable on slopes and uneven terrain.

For homeowners and customers without experience in backhoe operation, simplicity of operation is important - and safety. One of the biggest mistakes people make with backhoes is improper lifting and craning.

Comments from the industry

Bradco, Delhi, Iowa, Dave Aldrich: "The backhoe is a highly profitable rental item that can either be a dedicated piece of equipment or an attachment to existing equipment such as a tractor or skid-steer loader. Attachment backhoes keep a tractor or skid-steer rented more often. Attachment backhoes can be easily transported without the need to use large vehicles that require specialized licensing. Attachment backhoes can perform many of the same jobs as larger units."

Case Corp., Racine, Wis., Rusty Schaefer: "Case is seeing increasing emphasis on rental of all types of construction equipment [and] loader-backhoes and skid-steer loaders [are] leading the way. Stock as many different attachments as possible, and rent them in packages tailored to specific applications, so the machine becomes a job-site solution. A loader-backhoe equipped with a breaker can be rented at a rate as much as 50 percent higher than the machine rented alone."

Ditch Witch, Perry, Okla., Brent Bolay: "A utility backhoe is a popular attachment for compact riding trenchers and for larger machines used by utility companies and contractors. Customers like a machine with a trencher on the rear and backhoe on the front because it allows them to take care of routine backhoe work without bringing another machine to the job site. Rental rates for trenchers with backhoes are higher."

JCB, White Marsh, Md., John Facchinei: "The backhoe-loader is the most versatile piece of equipment on any job site. Rental stores should keep an open mind about backhoe opportunities, especially where smaller, multi-function backhoes are concerned. When purchasing equipment, buy every option and attachment."

John Deere Construction Equipment Co., Moline, Ill., Mike Boyle: "The demand for rental backhoes is growing. To maximize backhoe rental potential, find out what size equipment and attachments contractors in your area are using on their everyday jobs, promote features contractors need, inventory newer equipment by [selling] old units after three or four years and provide fast downtime repair. When buying, don't overspec the machine - some options don't add value in the customer's mind."

K-D Manitou, Waco, Texas, Ed Ugolini: "Rental centers are finding that the inexpensive compact backhoe-loader is an excellent addition because of its small size, low cost [and] portability. Since more and more rental stores include compact backhoes in their inventories, exposure to potential customers is increasing, thereby increasing demand."

New Holland North America, New Holland, Pa., Roger Huggard: "More and more companies are renting backhoes instead of purchasing them. Renting a machine only when it's needed frees up capital. A rental center must know customers in its area. A majority of backhoes sold in North America are in the 14- to 15-foot depth range. Successful rental centers will have units of that size, [plus] a few units both larger and smaller for specific application advantages."