When a rental generator is nearing the end of its useful life, you might be left with the difficult choice of whether to replace your existing generator with a brand new, more expensive engine or seek an alternative option. Many equipment rental companies are now taking advantage of engine remanufacturing to repower their generator fleets.
“In the past year, we’ve been seeing significantly more interest from rental companies in engine remanufacturing,” said Andy Machin, vice president of Perkins Pacific, a Washington state-based engine distributor and remanufacturer. “The lower cost of engine remanufacturing and the like-new performance of the product after integration is driving many rental company owners to consider remanufactured engines as an option. It’s been a common engine choice to extend the life of machinery for many equipment owners and operators for years, and rental companies are beginning to see the value.”
Engine remanufacturing can give your generator a second life and allow the generator to continue to produce income for your rental business for years into the future.
As a lower cost, more environmentally-friendly alternative that offers less downtime and increases the resale value of rental equipment, remanufacturing offers a great number of advantages to rental fleet owners. Here are a few reasons why rental generator fleet owners should consider remanufacturing their engines:
1) Lower Cost
One of the biggest factors in choosing a remanufactured engine is cost. Remanufactured engines cost up to 50 percent less than a new Tier 4 Final engine, not including associated engineering costs, and offers even greater savings over the purchase of a new piece of equipment. Maintenance on some new Tier 4 Final engines can be costly as well. In addition to being more complex to service, additional costs for after treatment cleaning and DEF fluid can add up quickly.
After integrating a reman engine, generators can typically see an additional 4-7 more years of service life for rental companies. When compared to the cost of a new engine integration, the value and quality offered is significant. Remanufactured engines can help rental fleet owners minimize total cost of ownership for their equipment and offers an economical alternative to Tier 4 Final or investment in new power generation equipment.
“We frequently hear from rental customers who are looking for ways to refurbish their generator fleets and add more years to the life of each unit they own,” said Kevin Knowles, generator sales at rental generator manufacturer Southwest Products. “With our predominantly Perkins-powered generator lineup, Perkins Pacific has been a resource for supplying and integrating remanufactured engines that has helped our rental customers get many additional years of service from their generators.”
2) Less Downtime
Opting to replace your existing engine with a new one typically requires significant engineering time that can render rental equipment out of service for months. The integration and testing process also takes significantly longer with a new Tier 4 Final engine than with remanufactured engines.
“A completely new engine may include diesel exhaust fluid, fluid lines and mounting components, each of which must be configured during integration. Electrical components, ECU/ECM and a high level of technical interfaces with electronics programming and testing increases engineering time,” said Paul Hecker, an engineer at Southwest Products. “All of that additional engineering work can add up to about an additional 150 hours.”
For rental companies, equipment down time adds up to less income and less value from their equipment. Remanufactured engines are essentially an updated, refreshed version of your generator’s existing engine, so they take much less time to integrate.
3) Increase Resale Value
Once a rental generator has neared the end of its life and its profitability has decreased, resale within the U.S. and to lesser regulated countries can be a significant source of revenue for fleet owners. Integrating a remanufactured engine can increase the resale value of a used generator by a substantial amount. With a remanufactured engine, used generators are not limited to re-sale only within the U.S.
There are two main factors currently making it difficult to sell Tier 4 Final-powered equipment in lesser regulated countries: serviceability and fuel availability. The lack of established service programs for the new technology makes supporting the product difficult. This coupled with high product costs, have companies shying away from Tier 4 Final powered equipment. In addition, many lesser regulated countries don’t have high availability for ultra-low sulphur diesel fuel, which is required by Tier 4 Final engines to operate effectively. Without it, the diesel particulate filter can clog rapidly and cause significant operation issues.
4) A More Sustainable Option
With the growing demand for environmentally-friendly options, many rental fleet owners are now fielding questions about their own “green” practices and equipment. Remanufactured engines offer a way for rental companies to increase the sustainability practices for their business.
Purchasing a remanufactured engine keeps an old engine core and many usable components out of a landfill, which can greatly reduce the impact on the environment. According to Perkins Pacific’s Andy Machin, approximately 73 percent of the old engine can be salvaged during the remanufacturing process saving millions of pounds of waste out of landfills.
New engine production requires all new materials, substantial amounts of energy for the production process and additional transportation costs. By utilizing recycled components, a remanufactured engine typically uses about 80 percent less energy than new engine production, making it a much greener option. For rental fleet owners, reman offers the opportunity to expand their sustainability practices while saving money.