CONSTRUCTION EQUIPMENT: Compact Attraction

In the landscape industry, productivity is key. Increasing efficiency results in getting more jobs done in less time, so it makes sense for landscape contractors to invest in machines that will help them achieve their goal of running more streamlined and profitable businesses.
 
Performing numerous jobs and offering a wide variety of attachments, compact utility loaders allow contractors to “reduce their dependence on hand labor and bulkier pieces of equipment that don’t perform well in many of their applications,” says Greg Lawrence, Toro marketing product manager for compact utility loaders, Bloomington, Minn. “By replacing expensive hand labor and eliminating the cost of repairing turf damage caused by larger equipment, landscape contractors have quickly bolstered profits by employing these lightweight, compact machines.”

MARKET HISTORY. Now considered “extremely popular” in the landscape industry, Kevin Smith, product manager for compact utility at Ditch Witch, Perry, Okla., says the market for compact utility loaders “has really evolved over the past few decades, starting primarily in Australia and New Zealand.” Following that trend, the compact utility loader has evolved in the United States over the past decade or so.
 
When first introduced, Lawrence says compact utility loaders were “wheeled, dedicated ride-on loaders. Since then, the selection has expanded for contractors.” Now, in addition to wheeled designs, there are tracked designs with both ride-on and walk-behind capabilities. However, Lawrence says trends indicate that tracked units are more popular than wheeled units, likely because tracked units “can move around with a light footprint” and perform well on all ground conditions and in all seasons.
 
“The evolution of the compact utility loader means more choices, and contractors should select a model based on the type of fleet they currently have, their typical applications, local ground/soil types, altitude and climate in which they work, and the attachments they will operate,” Lawrence suggests.
 
Initially, Smith points out that compact utility loaders primarily were used as material handling units, to move materials from point A to point B. “As jobsites became more confined, the need for a compact unit was more established. Where the growth in these machines has come is that contractors are able to use a wide variety of attachments. That’s the biggest benefit of how compact utility loaders have evolved.”
 
Another benefit contractors are realizing is that compact utility loaders are small enough to be “quickly and easily transported from jobsite to jobsite,” says Aaron Kleingartner, loader product specialist at the Bobcat Co., West Fargo, N.D. And, he adds, the ride-on platform for the loaders results in a “comfortable solution for outdoor projects.”
 
While the machines still are used to move materials, what those in the market are looking for is a piece of equipment that will provide a better return on investment and add versatility to their workforce. “Small, compact, versatile machines have been able to fill that need,” Smith explains. “That’s what’s driven the growth of compact utility loaders over at least the past decade here in the U.S.”

VERSATILE EQUIPMENT. Bob Tunzi, owner of Tunzi & Sons in Peotone, Ill., has had his compact utility loader for about two and a half years. His company also has two full-size skid-steer loaders, but Tunzi says the amount of residential remodel and renovation work the company does led him to buy a compact utility loader because “we were just having a problem where we couldn’t get into people’s backyards. Full-size loaders can be kind of hard on the lawn getting them into yards, so we looked at alternatives.”

Since the market for compact utility loaders has expanded over the years, there are many options out there for contractors looking to purchase machines to aid their businesses. Depending on what jobs a machine will be expected to perform, contractors should make sure what they’re buying comes with all of the necessary attachments.
 
“I looked at different models and talked to people” about the compact utility loader, Tunzi says, pointing out that he tried out about four units before settling on one to purchase. “I like the wide tracks – they allow you to get into situations in muddy conditions where a wheeled machine would get stuck. They are more turf friendly.”
 
More and more contractors are realizing the benefits and versatility of a compact utility loader, Kleingartner says. “There are many reasons why residential landscape contractors are opting for smaller equipment to assist them with performing their work,” he says, pointing out that smaller machines can access more areas and help get work done faster.
 
“They are the ideal size for landscaping applications because they easily maneuver through standard gates and door frames, travel and operate in areas where only hand labor could otherwise work, move across sensitive turf with minimal ground and site disturbance, and can be transported on a single-axle trailer,” Lawrence points out.
 
“Everything in our business comes down to productivity,” Tunzi explains. “If you were doing things by hand – for example, digging holes by hand or trenching – it’s going to take you longer and you’d have to use more people. You can save time by using the machine, which makes you more competitive on your price and it’s easier on the crewmembers having equipment that helps them do the task so they don’t wear out as quickly.”
 
Not wearing out those in the field definitely is one of the benefits to having a stand-on compact utility loader. Smith says stand-ons “really come into play when people have to make a lot of ground movement, providing the operator to be with the unit all day. It’s definitely for the guy doing a lot of moving all day long – the stand-on machine allows him to be a little refreshed on the job rather than having to be behind the product.”
 
One thing manufacturers and contractors agree on when it comes to compact utility loaders is that those in the market for one should try before they buy. Harley Caton, owner of Caton’s Lawn Care in Washington, N.C., has had his compact utility loader for about a month and says he looked at two or three different machines before making a decision.
 
“When selecting a compact utility loader, the equipment operator should gain a full understanding about what the equipment can do,” Lawrence says. “Prospective purchasers cannot simply rely on the brochure specifications of the machine to determine which model will be the best for their business. It is critical to put the machines on their jobs and demo them in ‘real-world’ conditions to determine which machine will best fit the needs of their business.”
 
Lucky for contractors, most dealers are more than willing to loan out machines. Tunzi says back when he was shopping around, he just contacted dealers and told them he was interested in a compact utility loader and wanted to try it.
 
“If a dealer is not going to let you try out the machine, then they’re not very confident in the machine,” Tunzi says. “The whole business world is competitive, and dealers have to be able to put it out there and say, ‘We think we’re the best, and here’s why.’”

MAINTENANCE MATTERS. For landscape contractors interested in investing in a compact utility loader, taking the time to learn about and care for the machine is extremely important.
 
One of the first steps toward extending the life of a compact utility loader is to use the machine only for what it’s designed to do, Lawrence says. Also, he recommends “routine, basic maintenance after each use to ensure the continued performance and increased longevity of a compact utility loader.”
 
Some compact utility loaders on the market have safety features built into the product, such as parking brakes, which are helpful while operators are using the machine. In addition to these built-in features, landscape contractors buying a compact utility loader should read the instruction manual accompanying the machine and have an understanding of its capabilities. Regular upkeep, such as checking fluids, changing filters and removing debris, is the best bet for keeping the machine up and running. “The cheapest repair is regular maintenance,” Lawrence points out.
 
But what happens when, even with regular maintenance, something goes wrong? That’s something to think about before the problem arises.

“One of the big things that a landscape contractor needs to remember is to buy from a company that can provide service and support,” Smith says. “Make sure you’re getting a quality product. And if something does happen, make sure you can get service.”
 
Smith admits that every compact utility loader on the market is different, but they all require the proper care. “If a landscape contractor takes care of his compact utility loader, it will give him years of use without any trouble. Most of the products out there are rubber-tracked versions. Wash and clean and inspect them, that will increase the life of the machine considerably.”

RETURN ON INVESTMENT. Tunzi has bought a number of pieces of equipment in his day, and he says he can’t think of one where afterward he’s said, “Man, I shouldn’t have bought that.” He admits that he’s careful when purchasing equipment, trying it out first and making sure that it will do what he needs it to do.
 
“Rent first and try it,” Tunzi advises. “When it becomes an issue when you’re renting it and rental fees exceed the cost to own and appreciate it, then it’s time to buy it.”
 
The cost of a compact utility loader has risen over the years, mostly because of economic inflation and higher steel prices, but Lawrence claims that the overall price of the machines has remained consistent since being introduced to the market. Today there is a range of units with varying horsepower and numerous attachments, and with that comes a range in price. Depending on what the machine is needed for, a compact utility loader can run a contractor anywhere from $12,500 to $22,000. Attachments can vary from $300 to $8,000, manufacturers estimate.

Many manufacturers offer special financing options to assist contractors when purchasing a compact utility loader. Manufacturers point out that the more attachments a customer wants to go along with the machine, the higher the price tag becomes — but more attachments means more opportunities.
 
“With the wide range of attachments available, these machines have gone beyond just an added efficiency on the jobsite – they are another way for contractors to expand the number of services they provide to customers,” Lawrence says.
 
But Smith cautions contractors looking to buy a compact utility loader to purchase only what they need. Contractors need to figure out what applications they need the product to do, and from there, they should source the product that fits that most appropriately. Trying to stay on the lower-end of the price scale is possible for some contractors, but ultimately the machine needs to be able to perform the jobs the contractor needs it to do.
 
Some of the most common attachments for a compact utility loader are augers, vibratory plows, trenchers, trench fillers, soil cultivators, tillers, power rakes and underground boring units. Contractors can use a variety of attachments to grow their businesses, completing jobs such as installing pipe and valve boxes, hauling materials and covering open trenches. “Their uses are virtually endless,” Lawrence says.
 
For contractors who want to try the product out before purchasing it, drive units with one attachment can usually be rented for $100 to $150 a day, and separate non-hydraulic attachments usually rent for about $15 to $25 per day, while hydraulic tools usually go for $25 to $90 a day, manufacturers state. They also advise that if a contractor is renting a compact utility loader and attachments once a week, it’s probably a good sign that it’s a time to buy.
 
“I think it’s evident by the growth in the market, this product line is providing contractors a wonderful return on their investment,” Smith says. “For the cost versus value that they’re gaining from this product, they’re able to return more to the bottom line of their business, and that’s what it’s really all about.”