JCB launches North American refurbishment program
By Lindsey Anderson04 November 2009
JCB in North America has launched a new refurbishment program for rental equipment dealers and customers that allows fleet-owners to get older equipment back in tip-top shape.
The Encore program gives owners in North America the option of bringing any of JCB's core products, such as backhoe-loaders and Loadall telehandlers, back to original specifications. Equipment with 1,000 to 5,000 hours of use is the target range for refurbishment.
"We're trying to get a machine that is in its mid-range that you're going to get a return back on its investment," said Mike Werner, vice president of customer support for JCB North America.
"[When Encoring a machine] wear components must have at least 50 percent wear remaining, and if it doesn't, it has to be replaced under the program. That way you're not getting something with bald tires and calling it an Encored machine."
Werner said during straining economic times, if a dealer cannot purchase a new piece of equipment, having the machine be Encored is the next best bet.
"If a dealer says, ‘I need this [piece of equipment] to last through my next three jobs,' we can say, ‘How about we Encore the machine you have and we'll fix all the broken gauges, we'll fix all the leaks, we'll get it mechanically right and we'll replace anything that's broken and give it back to you,'" Werner said.
"That way the guy can get it back and be offered a manufacturer's warranty."
Machines that have been Encored and meet or exceed program standards will receive a 90-day powertrain warranty from JCB.
The process allows dealers to sell Encored machines to existing customers at a profit, which increases resale value of JCB machines, Werner said.
An example, Werner said, is AIS Construction Equipment Corp. which has used the Encore program with great success.
"The initial investment was $8,000 and I think they ended up getting $16,000 more for the machine," Werner said. "That's a pretty extreme one, because most Encore repairs will be anywhere from $2,000 to $5,00 with hopes of a 20 to 40 percent return on that investment.