May 2008

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Moving Equipment: In-House Or Outsource

The debate centers on timeliness and cost.

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By Daniel C. Brown

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Contractors are divided on the question of whether it’s better to transport equipment with in-house trucks or to outsource that function.

McAninch Corp., a large earthmoving and underground utility contractor based in Des Moines, IA, moves its own equipment. With a fleet of 16 tractor-trailer rigs and one dump truck pulling a trailer, McAninch can move anything from a skid-steer loader to a Caterpillar D11R dozer. The firm works in several states, so equipment often must be moved hundreds of miles. All of McAninch’s heavy haulers are Kenworth tractors pulling Trail King trailers. They range over an area including Iowa, North Carolina, Missouri, and Arkansas.

“The biggest reason we keep it in-house is to save time,” says Curt Smith, McAninch’s heavy equipment transportation director. “If we hired it done, we’d have to wait on the trucking firm to get to us. By having our own heavy haulers, we can get to our job sites as quickly as possible.”

Smith said one of the firm’s Cat D7 dozers recently broke down on a project in Branson, MO. By having a truck and driver in Springfield, MO, McAninch was able to quickly retrieve an idle D7 from a job in Camdenton, MO, and send it to Branson. Voila! The replacement arrived the same day as the breakdown.

By contrast, New Orleans–based Barriere Construction LLC relies exclusively on three owner-operators to move its equipment, mostly in southeastern Louisiana. One trucker has three lowboys in New Orleans; another firm has two lowboys north of Lake Pontchartrain; and a third firm keeps two rigs on call in bayou country west of Boutte.

Ben Tucker, Barriere’s equipment manager, says his owner-operators, who are on call for him, can move equipment less expensively than he can do it in-house. “I can’t do it internally for what I pay an owner-operator,” says Tucker. “I’ve been using these other firms since 2003. Before that I had my own lowboys and I still had to sub out some moves.

Tucker has other reasons for his decision. “It seems like I have a safer environment with owner-operators,” he says. “The drivers have their own equipment, so they take better care of it. And they know if they work extra hours they get paid for them. This way I don’t have to struggle with employees.

“We average between 25 and 30 moves a day,” Tucker explains. “We’ve got to keep up the utilization on our equipment, so we’re constantly moving it. And moving isn’t our core business. Plus, it’s quicker to have trucks in three locations instead of having them all in one place.” Beverly Industries, one of the companies that hauls for Tucker, runs three Mack trucks, one Kenworth, one Peterbilt and one Volvo. The heavy equipment trailers come from Trail-Eze, Trail King, and Fontaine.

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The owner-operators can take other business, but they check with Barriere’s dispatcher before they commit to someone else. “They work outside if they have to, but we’re their number-one customer,” says Tucker.

Tucker says the owner operators are responsible for loading, transporting, and unloading the equipment. Barriere maintains specifications for insurance that the owner-operators must carry. “If anything happens, they are responsible,” says Tucker. “They buy the yearly permits for up to 120,000 pounds. For above 120,000 pounds, they get the permit and I pay for it. They supply an escort car if needed.” Next Page >

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