Capital Equipment News December 2020

EDITOR'S COMMENT

SERVICE TAKES CENTRE STAGE

A s we bring the curtain down on 2020, I believe it will be remembered as one of the most difficult years as the industry considers the devastating aftershocks of this “Black Swan” event. The COVID-19 pandemic caused vast economic breakdown across the world, as customer demand, industry activity and confidence collapsed. For the capital equipment sector, the pandemic had a dire impact on product sales. However, on the flip side, the service business has had an unprecedented opportunity to thrive. I have spoken to a number of executives from different companies across different sectors of the capital equipment sector, and they all seem to sing from the same hymn sheet – there is a growing demand for service as fleet owners seek to sweat their existing assets, and want longer lifecycles from their equipment. This means that a strong maintenance regime is required. I recently spoke to an executive from Multotec, who noted that processing equipment on mines is being pushed to the limits of its design capability, with higher tonnages placing more demands on equipment. Mines are therefore relying more on suppliers to maintain equipment and ensure that it performs optimally. This requires closer working relation- ships between the supplier and customer; in the past suppliers would be called upon only when necessary. As you will see in this edition of Capital Equipment News , EIE Group CEO Gary Neubert affirms that one of the key trends in the industry is that fleet owners are choosing to get as much use as possible out

of existing assets rather than invest in new equipment during this period of economic uncertainty. The same view is shared by Scania Southern Africa executives, who believe that the pandemic has brought to the fore the importance of the service arm of every original equipment manufacturer’s business. While the service business is thriving, customers have, however, become more demanding, with fleet owners choosing to deal with total solutions providers who can meet all their needs from one stable. As companies strive to compete in a tough business space, big ticket purchases such as capital equipment take on a more important role. End users now need to evaluate everything that surrounds the product – from financing and maintenance contracts through to service support and insurance – in addition to the normal productivity and cost savings calculations already commonly used. This requires a great deal of experience in navigating the ever-growing pool of suppliers, along with answering many critical questions you didn't even know you should ask. In the decision-making process, one of the critical considerations should be the ability to source all the end user’s needs from a single supplier. It’s much simpler in the long run to deal with a single provider. Having to purchase equipment that drives your business from different suppliers and being serviced by the different suppliers can be time-consuming and costly. I believe working with an established supplier means that you have access to reliable support, as well as to the parts and services you depend on for maximum uptime. b

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

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CAPITAL EQUIPMENT NEWS DECEMBER 2020