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Your Excavator Is Down. Here's How Much That Breakdown Is Really Costing You.

  • Writer: RALPH COPE
    RALPH COPE
  • 2 days ago
  • 8 min read

Your excavator has stopped working.

The operator is standing around.

The project is waiting.

The client is getting impatient.

And you're on the phone trying to find a part.


The first question you're probably asking is:

“How much is the replacement part going to cost?”

It's an important question.

But it might not be the most important one.


The bigger question is:

“How much is this excavator costing me while it is standing still?”

Because a broken excavator doesn't simply cost you the price of the replacement component.


It can cost you lost production.

Lost revenue.

Operator wages.

Transport.

Mechanic's time.

Emergency parts.

Project delays.

Customer relationships.

And sometimes even future business.

A R100,000 breakdown can very quickly become a R300,000 problem.

And the longer the machine stands still, the more expensive the breakdown becomes.


The Excavator Doesn't Know It's Not Your Fault

Imagine you operate a 20-tonne excavator.


It normally generates R6,000 per productive day.


At 07:00 on Monday morning, the final drive fails.


The machine stops.


You call your mechanic.


He diagnoses the problem.


You call the OEM.


They tell you the replacement will take three weeks.


Three weeks?

Your machine doesn't care.

Your customer doesn't care.

Your bank doesn't care.

And the project certainly doesn't care.

The excavator is simply sitting there.


By Friday, you've already lost approximately:

R30,000 of production.

After two weeks:

R60,000.

After three:

R90,000.

And you haven't bought the part yet.


The Cost of a Breakdown Is Bigger Than the Part

Let's look at a typical breakdown.

Suppose your final drive fails.


Replacement component

R100,000

Sounds painful.

But that's only the beginning.

You may also have:


Labour

R20,000

Transport

R10,000

Diagnostic costs

R5,000

Lost production

R90,000

Project delays

R30,000

Additional site costs

R15,000

Your R100,000 final drive has now created a total economic impact of:

R270,000.

And suddenly the part itself isn't even the biggest cost.

Downtime is.


What Does Your Excavator Actually Earn Per Day?

This is a calculation every plant owner should know.

Take your excavator's average productive revenue per day.


Let's say:

R6,000 per day.

Then calculate:

1 day down

R6,000

3 days down

R18,000

1 week down

R30,000

2 weeks down

R60,000

1 month down

Approximately R120,000

That's before you consider the cost of the actual repair.

And if your machine is working in a high-value mining or infrastructure application, the figure could be substantially higher.

The exact number isn't important.

Knowing your number is.


The Downtime Clock Starts Immediately

Here's the important psychological shift.


Most people think about a breakdown like this:

Machine breaks → find part → pay for part → repair machine

But the economics actually look more like:

Machine breaks → downtime clock starts → lost production accumulates → part is sourced → repair happens → machine returns to work


The clock doesn't stop because you're waiting for a quotation.

It doesn't stop because the supplier is closed.

It doesn't stop because the part is in Johannesburg.

It doesn't stop because the OEM has discontinued it.

Every hour counts.


The Most Expensive Part Is the One You Can't Get

This is why availability is so important.

Imagine two replacement options.


Option A

New OEM final drive.

Price:

R250,000

Availability:

3 weeks


Option B

Good used OEM final drive.

Price:

R90,000

Availability:

Tomorrow


Which one is cheaper?

At first glance, obviously Option B.

But even if Option B cost R120,000, it might still be the economically superior choice.


Why?

Because time has value.

If you're losing R6,000 per day, waiting three weeks costs you another R90,000.

Suddenly:

R250,000 + R90,000 downtime = R340,000

while:

R120,000 + R6,000 downtime = R126,000

The exact numbers will vary.

But the principle is universal.

A cheaper part isn't necessarily the cheapest solution if it takes too long to arrive.


Not All Excavators Have the Same Downtime Cost

This is where things get even more interesting.

Consider two excavators.


Excavator A

Owned by a farmer.

Used occasionally.

If it breaks, the farmer can wait two weeks.


Excavator B

Working on a mining operation.

Operating long hours every day.

If it breaks, production is immediately affected.


The same R100,000 component has completely different economic implications for the two owners.

For the farmer:

Price may be the dominant consideration.

For the mine:

Availability may be the dominant consideration.

There is no universal answer.

The correct solution depends on the application.


The Operator Still Has to Be Paid

Here's another cost that gets overlooked.


Your operator doesn't necessarily stop costing you money because the excavator has stopped working.


You may still be paying:

  • Wages

  • Benefits

  • Accommodation

  • Travel

  • Overtime commitments

If the machine is down for two weeks, your operator may be sitting idle or being reassigned.

Either way, there is a cost.


What About the Rest of the Site?

An excavator rarely operates in isolation.

Imagine an excavator feeding a fleet of tipper trucks.

The excavator stops.

Now the trucks aren't working efficiently.

Or imagine an excavator preparing a trench for a pipeline crew.

The excavator stops.

Now several other teams are waiting.

Or imagine a demolition project where the excavator is the critical machine.

One failed component can hold up the entire project.

The economic impact of the breakdown can therefore extend far beyond the excavator itself.


The Domino Effect

This is what we call the downtime domino effect.


One component fails.

The excavator stops.

Production falls.

Other equipment becomes underutilised.

The project slows down.

Deadlines are missed.

Additional costs appear.

The customer becomes unhappy.

Your business takes the hit.

All because one component failed.

That's why the speed of your parts supplier can matter enormously.


The Difference Between “Cheap” and “Fast”

There's a natural temptation to shop purely on price.

And you should absolutely compare prices.


But don't compare:

Part price vs part price.


Compare:

Total breakdown cost vs total breakdown cost.


For example:


Supplier A

Part:

R80,000

Delivery:

21 days


Supplier B

Part:

R110,000

Delivery:

2 days

If downtime costs you R6,000 per day, the additional 19 days of downtime associated with


Supplier A could cost:

R114,000.

So the cheaper part actually costs:

R194,000

before you even consider the other consequences.

Supplier B costs:

R122,000

in part + downtime.

Suddenly the “expensive” supplier is actually the cheaper option.


This Is Why Used OEM Parts Can Be So Valuable

This is one of the strongest arguments for the used OEM market.


A used OEM component can potentially offer:

OEM engineering + lower price + immediate availability.

Of course, condition matters.

A used component needs to be properly assessed.

But if a good used OEM component is sitting in a warehouse locally while a brand-new OEM component is sitting on a ship somewhere overseas, the used component may be the obvious choice.

Not because it's cheaper.

Because it's available.


What About Refurbishment?

Sometimes you don't even need another component.


Your existing component may be repairable.


This can be particularly relevant to:

  • Hydraulic cylinders

  • Hydraulic motors

  • Pumps

  • Final drives

  • Slew motors

  • Other major components

A component can sometimes be removed, refurbished and returned to service.

Again, the key question isn't:

“Is a new part available?”

It's:

“What is the fastest economically sensible way to restore the machine?”


The Parts Supplier Should Understand Your Downtime

This is something that matters enormously.

A good parts supplier shouldn't simply ask:

“What part do you need?”

They should also understand:

“How urgently do you need it?”

Those are different questions.

If your machine is operational and you're doing preventative maintenance, you can shop around.

If your machine is sitting on a construction site with 20 people waiting, the economics change dramatically.

Urgency has value.


The Three Questions to Ask When Your Excavator Breaks

When something fails, ask:


1. What has actually failed?

Don't start ordering parts before you have a diagnosis.


2. What are my replacement options?

Consider:

  • Repair

  • Refurbishment

  • Used OEM

  • Aftermarket

  • New OEM


3. How quickly can each option get the machine working?

This is critical.

You are not buying a component.

You're buying uptime.


A Simple Excavator Downtime Calculator

Here's a useful formula:


Daily downtime cost

Lost daily revenue + operator cost + other site costs

Then:

Total breakdown cost

Repair cost + transport + labour + downtime cost + project impact

For example:

Daily lost production:

R6,000

Expected downtime:

10 days

Downtime:

R60,000

Repair:

R100,000

Labour:

R20,000

Transport:

R10,000

Total:

R190,000

That R100,000 part has actually created a R190,000 business problem.


What If You Have Multiple Excavators?

This calculation becomes even more important for fleet operators.

Suppose you operate ten excavators.

If one machine goes down, perhaps the others can absorb some of the work.

That's good.

But if three machines are down at the same time?

Now you're facing a serious productivity problem.


This is why fleet operators should think about:

  • Critical spare parts

  • Common components

  • Preventative maintenance

  • Supplier relationships

  • Parts availability

  • Backup machines

  • Donor machines

A good parts strategy isn't simply about buying parts when something breaks.

It's about reducing the probability and duration of downtime.


Your Parts Supplier Is Part of Your Risk Management

This is an interesting way to think about it.


Most businesses think of their parts supplier as someone who sells them components.


But for a plant-hire or construction company, your parts supplier is actually part of your operational risk management system.


If your supplier can:

  • Identify the correct component quickly.

  • Source it quickly.

  • Offer multiple options.

  • Cross-reference components.

  • Supply used OEM parts.

  • Offer refurbished components.

  • Dispatch quickly.

then they can materially reduce your downtime risk.


That's valuable.


This Is Where Vikfin Is Different

At Vikfin, we understand that customers don't buy excavator parts because they love excavator parts.


They buy them because their machine is broken.


And when their machine is broken, they have a problem.


Our job is to help solve that problem.


We stock and source components including:

  • Final drives

  • Slew motors

  • Hydraulic pumps

  • Valve banks

  • Hydraulic cylinders

  • Engines

  • Radiators

  • Intercoolers

  • Oil coolers

  • Wiring harnesses

  • Tracks

  • Buckets

  • Quick couplers

  • Counterweights

  • Exhausts

  • Bonnet panels

  • And many other excavator components.

And because our business is built around dismantling excavators, we have access to a large ecosystem of used OEM components.


Why Used OEM Can Beat New

Let's be blunt.

If your machine is down and the OEM says:

“We can have the new part for you in three weeks.”

That's not necessarily a solution.

It's a quotation.

A solution is:

“We have a good used OEM component here and can get it to you tomorrow.”

That can be worth far more than the difference in price.

Because your excavator isn't an ornament.

It's a revenue-producing asset.


The Ultimate Cost of Downtime

There's one final cost that doesn't appear on any spreadsheet.

Reputation.

If you're a plant-hire company and your customer's project is delayed because your machine is unavailable, they remember.

If you're a contractor and you repeatedly miss deadlines because your equipment isn't reliable, customers notice.

If you're a mining contractor and your production targets aren't met, management notices.

Downtime can therefore affect future revenue.

That's difficult to quantify.

But it's real.


The Best Breakdown Is the One You Recover From Quickly

Machines will break.

That's part of owning earthmoving equipment.

Hydraulic pumps fail.

Final drives wear out.

Engines overheat.

Cylinders leak.

Wiring deteriorates.

Tracks wear.

Slew motors fail.

You can't eliminate every breakdown.

But you can control how quickly you recover from one.

And that's where having the right parts supplier matters.


Don't Ask “How Much Is the Part?”

The next time your excavator breaks down, don't ask only:

“How much is the replacement part?”

Ask:

“How much is every day of downtime costing me?”

Then ask:

“What's the fastest economically sensible way to get this machine working again?”

You might discover that the R100,000 used OEM part that can be delivered tomorrow is actually worth more to you than the R70,000 part that arrives in three weeks.

Because the real cost isn't the part.

The real cost is the machine standing still.

And every hour that machine isn't working...

the meter is still running.

At Vikfin, we understand that.

That's why we focus on being Flexible, Fast, Friendly and Affordable.

Because when your excavator is down, fast isn't a luxury.

It's part of the price.


 
 
 

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