CONSTRUCTION EQUIPMENT: Back(hoe) to Basics

When contractor Attila Varga started his excavating business in 1998, he invested in a backhoe loader, a machine he thought would be efficient and give him the most return on his money. In the span of eight years, the owner of Varko Contracting & Excavating in Calgary, Alberta, Canada has added three more backhoes to his fleet, and he plans to add yet another machine this year.

Varga learned early on the right piece of equipment doesn’t only increase efficiency on the work site, but profitability as well. Investing in the right machines can make all the difference in a landscaping business.

“We can do pretty much anything with them,” Varga says.

LOADERS DEFINED. The first step in purchasing the right piece of equipment is to dig in and learn the difference between a contractor’s basic machines. Each manufacturer has a different variation or name for each piece of equipment, but they all are made to perform virtually the same tasks.

Most versions of the backhoe loader include both front and rear dig components. It is often billed as the contractor's jack-of-all-trades. The machine can run on wheels or tracks. It is not to be confused with the excavator, which has a similar digging device, but only on one end.

An end loader, by contrast, only has a loader (not a digging component) on one end. On most models, the loader piece can be replaced with different attachments to better suit various jobs.

The skid-steer loader is another piece of construction equipment contractors use. This is a smaller machine than the backhoe or end loader, it has a tight turning radius and can maneuver in small spaces.

Bob Tyler, product marketing manager for backhoes and landscape loaders for the construction and forestry division of Moline, Ill.-based John Deere, explains a skid-steer turns in this manner because wheels on one side of the machine move forward while wheels on the other side simultaneously slow down or move backward. The equipment usually is controlled with two levers rather than a steering wheel.

Some manufacturers make loaders in four-wheel drive models as well. The backhoe loader, on the other hand, is a two-wheel drive machine, allowing it to be driven like a car.

Contractors often overlook the landscape loader, or “skip loader.” The machine looks similar to a backhoe and is used widely in the Southwest United States. It has a loader on the front and is often fitted with a box blade rather than a backhoe on the rear for fine grading applications. “Despite its outward similarities to a backhoe, the landscape loader is in fact a purpose built machine with a lower center of gravity for enhanced side slope stability,” Tyler says.

OPTIMUM USE. When Varga started his search for a backhoe, he already was familiar with how they operate because of previous work in the field. However, not all prospective buyers are as experienced or know the duties each piece of machinery can take on.

The key to finding the right piece of equipment is to consider tasks involved in common jobs. A backhoe just may be able to perform several of those tasks, Tyler says.

For example, if a contractor needs to bury a pipe 4 feet in the ground, and then cover it up afterwards, a backhoe would save on buying two separate pieces of equipment, Tyler says. The backhoe consists of both an excavator to dig the trench, and a four-wheel drive loader to fill the trench after the pipe is set.

“If the task at hand is to spend all day unloading pallets of sod from a truck or stockpiling topsoil, then a four-wheel drive loader might be the better choice, since it is purpose built for loading and unloading operations,” Tyler says. All of these machines can be fitted with a wide variety of attachments including multi-purpose buckets, pallet forks, angle brooms and snow blades.

Paul Anderson, loader backhoe product manager for Fargo, N.D.-based Bobcat, says the backhoe is convenient for multi-task landscaping jobs. “In addition to lifting and hauling dirt, landscapers can use the same machine to dig pits for tree and shrub installations and trenches for utility operations,” he says. “Operators can switch between loader and backhoe operations by simply rotating the chair.”

On the other hand, continuous loader operations, such as spreading wood chips from a bucket, loading trucks with topsoil or moving pallets, may be better suited for an end loader. For tight spaces, lighter loads and a smaller budget, a skid-steer or compact machine might prove a more viable option.

THE COMPACT QUESTION. Some landscape contractors may have more use for a smaller machine than its giant construction-sized cousin, as Bobcat can attest. Some manufacturers sell compact loader backhoes that combine features of a skid-steer loader and a compact excavator.

Landscapers often find the smaller models to be more beneficial to their businesses, Anderson says. “A smaller machine’s compact size enables operators to work in close quarters, such as in between homes and buildings,” he says, adding ideal practices for landscapers with compact loaders and attachments include installing trees and shrubs and moving pelletized materials like sod and fertilizer.

Other product managers confirm that skid-steer loaders, a smaller piece of construction equipment, are also ideal for confined spaces. Tyler warns, though, that this type of machine has its drawbacks. “From a landscaping point of view, this may not be desirable in all instances where there is a desire to avoid tearing up the surface that the machine is running on – grassy areas and freshly graded soil comes to mind,” he says. Another downside, says Tyler, is skid steers have one of the smallest capacity loader bucket attachments available.

MAKING THE INVESTMENT. Just as machines are sold in various shapes and sizes, expect to find a variety of sticker prices. For a tractor loader backhoe with up to 30 horsepower, expect to pay from $1,900 to $3,300, says John Ryan, product manager at Kubota Tractor in Torrance, Calif. The final cost depends on the attachments, Ryan says. The end loaders, which can contain anywhere from 50 to 135 horsepower, cost up to $10,000.

A four-wheel drive loader, starting at 59 horsepower and reaching 330 horsepower can cost anywhere from $67,000 to around $450,000, depending on how the machine is equipped, Tyler says. A landscape loader of the same brand starts at $61,500.

Skid-steer list prices can range from $24,000 to around $47,000 for horsepower in the 40s up to the 90s and backhoes can cost from $43,000 to around $200,000 for horsepower ranging from the 40s to more than 100. Compact loader backhoes, which have horsepower ranging from 31 to 46, can cost anywhere from $20,000 to over $40,000, Anderson says.

Varga says he paid about $117,000 Canadian, or just under $100,000 in U.S. currency for his first backhoe. He says his four backhoes are useful for multiple types of jobs, from sewer and foundation work to tree holes and rock walls.

Likewise, before any contractor decides to shell out that much money for the machinery, he or she must determine whether it will be used enough to make it worth the cost. There are a few things to consider when scoping out new equipment. “Those who often take on odd jobs, including digging trenches, craning heavy loads, unloading trucks or preparing a site to rough grade, may do best with a backhoe,” Tyler says.

A contractor must also keep the job site size in mind when purchasing construction equipment. Compact equipment at times may not be enough to get the job done in a timely manner. But there is also such a thing as a machine that’s too big.

“Say you want to put in a pool,” Ryan says. “If the equipment is too big, you’ll have to tear down the fence to get it to the site. But with a smaller machine, it can fit through the fence.”

Getting the equipment from site to site is another consideration. An average skid-steer, with a top speed of up to 11 mph, may need a truck and trailer for transport. On the other hand, a backhoe that can reach 23 mph can be driven to a site.

Anderson says that even a compact backhoe, if hauled, requires only a 1-ton truck and a smaller, less expensive trailer, which could save a landscaper the cost of additional, heavy-duty hauling equipment.

The contractor should consider not only the initial purchase price, but also how much work can be done in one day in terms of productivity, if the machine will be available to do work when it is needed and whether choosing a machine with low daily operating costs can create a large saving over a business year.

Varga says an added benefit is that the backhoe is like a Swiss Army knife: “It’s something that can do the job of two machines with one machine.”