Engineering triumphs post revisited...sort of...

NCWayne

Well-known Member
Having read the post about the engineering triumphs, and a good cross section of the replies, I noticed something. It seems that when it comes to the automotive side of things there are folks that have had good luck with newer vehicles and those that haven't had such good luck. Thing is it seems that most all of the situations fall at one or the other end of the spectrum, with some having nothing but problems and some getting hundreds of thousands of miles with no issues.

That got me to thinking about the same situation as it relates to both farm tractors and other heavy/construction equipment. Just curious as to what kind of luck you guys have had with the new equipment vs the old equipment?

Personally I've got a wide cross section of customers that have equipment ranging in age from a few years old to nearly 50 years old. Having worked on all of their equipment, having seen the problems encountered, and the parts availability and cost to make needed repairs, I've come to a personal conclusion. Equipment more or less reached it's peak back in the 70's and 80's and has gone downhill from there. Basically as things 'progressed', hydraulic pressures got higher, systems got more complex, electronics began taking over, and now there are even hybrid machines on the market. Through it all every advance claimed to help the customer, and in some ways they did. Ultimately though what I have experienced is this. The higher hydraulic pressures meant smaller parts doing the same work larger components originally did. This led to life expectancy/fatigue issues. More complex systems meant more parts to break....that did. Electronics, along the same lines, meant more sensitive components being forced to withstand conditions they couldn't handle (even though they were supposed to), or being screwed with by operators that could easily 'blow something up' simply because they wanted a radio in the cab (saw that cost a customer more than $3000 about 10 years ago). Now throw in the hybrid angle and, in most cases, you've now got all of the other issues wrapped together in one neat package....all in the name of saving energy and/or money for the customer.

Now, the downside to all of that, that no manufacturer, or dealership will tell you is this. One the ONLY way to get a brand new machine repaired is to call the dealership. Remember, they are often sending out a guy with nothing more than a year or two on the job, and few dealership schools under his belt, and charging $100 an hour. Thing is they can do it because they are the only ones that can afford the $10,000 for the computer diagnostic program to communicate with the machine. Gone are the guys like me with a lifetime of experience, charging a fair rate.....but who can't afford the $10,000 worth of software for each of the dozen brands of equipment we get routinely get calls on....much less the two dozen others we might see only once a year.... Basically a job that an independent could do for say $1,000, through a dealership might cost $5,000 or more.-----------Now take the availability of parts. With seemingly a new operating system on each new piece of equipment, there is no way a dealership can carry all of the parts in stock to keep anything other than parts for the brand new stuff, and the older stuff with lots of parts commonality, on the shelf. Even the there are many times the latest and greatest parts still have to be ordered from overseas or aren't in stock at all because they are too expensive to keep on the shelf.--------That leads to the simple matter of the cost of parts. Think about it a minute in terms of something common like an fuel injector. With many of the older machines you could get a brand new, mechanical injector for say $100, or a reman for say $75. With the new equipment it's not uncommon to give three to five times that, or more, for just one electronic injector.

I could go on and on, but this is already longer than I had planned so I'll end with this. The claims made by the equipment manufacturers, and our illustrious government/EPA are always that the new technology is both saving us money and saving the planet, but think about the reality of it all. One how much money is a high tech machine really saving you when the part that is designed to make the machine fuel efficient, and save you $3000 a year on fuel cost, stops working? Lets see, you've got a $4000 visit from the dealership to diagnose and repair the problem, the computer controlled part cost another $1000, and the machine was down for 5 days (((between diagnosis, parts on hand, and repair))) at another $2500 plus a day. Ultimately that one small problem cost $17,500, all so the machine could save you $3000 a year in fuel cost. Basically you've got to run over 5 years, with absolutely no problems, to even break even on that one repair. Sadly, nowdays a machine running 2000 hours a year, on average, is usually considered 'houred out' and in need of replacement somewhere around 5000 to 6000 hours. In other words before a machine financed on a 5 year loan is even paid off, it's typically worn out and in need of replacement by most major equipment manufacturers. In other words if you really want to make money, keep your machine until the warranty runs out and then make it someone elses' problem.......As far as the environment goes, that one part that went bad required 400 miles worth of travel for the dealerships nearest mechanic to make the repair. Then there was another 2000 miles between the airline and delivery company to get the part to the dealership. Then the miles put on by the parts guy back and forth to work that day, the 1/2 inch of paperwork required to track, receive, sell, and install the part, etc. In other words that 800 gallons of fuel you didn't burn, that would have 'saved the planet' and 'saved you money' all went away between the mechanic, he airplane, the parts guys car, and any other vehicle that might have gotten involved in moving one little part. Not to mention when that machine has to be 'recycled' into another machine within 10 years -vs- 25 or 50 years, the disparity of the savings claimed -vs- the true savings seems be reversed and just gets even further and further from what we're told it should be.

Maybe farm equipment is a bit different as I don't work on a lot of it, but for the problems I see and hear about I seriously doubt it.

So, again, what's your luck with old equipment vs new? Now I'm not taking about just the 'feel good facts' the dealerships spout, nor do I want to hear how great the new stuff is because it has heated seats and can do twice as much acreage per day than the old one..........What's the TRUE, TOTAL cost to you on repairs on the latest electronic marvel as opposed to the old standby you keep in the shed from yesteryear?
 
We don't have any of those feel good machines to do a comparison on. The old standbys are from the 30's to the 80's.
The most used are the old 806 and 856 both run cheaply with few repair costs. I do agree with your assessment though about all the extra supply chain costs to maintain one of these new fangled electronic wiz bang toys.
 
I totally agree with you sir and I am a retired shade tree mechanic of my equipment. Gone are those days.

I also understand that you are speaking from the service supply side. Understand your frustration. Same thing happened to me in industry. Everything went digital, I didn't want to work with said equipment so I retired.

However, I'd rather have the whistles and bells on my personal equipment and have to have it serviced by my local dealer if that's the price I have to pay to have it. However, for me, reliability has gone up as the auto industry for one has finally decided to send it out the door 100% rather than send it out halffast and let the dealer fix the remaining percentage.

That is why my current truck is a Chevy. The nearest dealer is a Chevy dealer. But it's a family owned business for 45 years in a small town and the son, current owner, gave me his card when he sold me the truck and said "if you need me, call me". Yea verily he has a repair shop but so what. He gets to make a living too. Course I have the new fangled gadget called Onstar that operates on new technology that I didn't have in any previous vehicle. Mighty comforting.

My 2c,
Mark
 
Wayne, very good topic, excellent post. I own and manage an automotive repair shop in Oregon. What I find is that the modern cars and trucks, for the most part are much more reliable and take less maintenance than older rigs. However, when the newer rigs do need work it seems to always be much more complicated, costly, and much more likely to need specialized equiptment for the repair. For instance it wasn't very long ago that brakes lasted ten to twenty thousand miles. Now it isn't unusual to see brakes go one hundred thousand miles. A few years ago, before I quit working on cars, I had a fairly late model Dodge mini van come in that had a bad body control module. It took me four remans from the dealer before I got one to work right. I was truly pulling what little hair I had left out before that one was done. the electronics are great when they work right, but extremely frustrating when they malfunction. My conclusion is this, there will always be repair work, but I have learned to be more selective in what I do. I tell my techs this regularly, "you are not going to be everything to everybody all the time." My two cents worth, and that is probably all it is worth.
 
NCWayne: The fact is that the companies began to make junk when the bean counters started to guide the design of new equipment rather than engineers.

In days gone by you tried to make the product as good as possible then sold the quality. Now they do a market study and set the sales price an then design to that price. So if a better transmission costs too much then you have to junk up the cab/etc. So they make the cab area look fancy and put in a cheaper transmission.

Also the marketing guys like "planned obsolescence". Than means you need to replace the machine faster and they sell you another "new" cheaper build machine.

The question I have had for awhile now is where is the used "newer" junk going to sell??? Everyone whats the "new" toy but who is going to buy the 3-4 year old one that is out of warranty???

There is a very small market for used late model large equipment. Example: How many guys can use a 36 row corn planter??? The BTO all want new. The smaller guys can't use it as most would not even have a tractor large enough to put it.

It also is happening in smaller equipment. Take skid steer loaders. I would almost never buy a used one. They are one of the most abused pieces of equipment out there. Look at most skid steer dealers lots. They have rows of used ones in that 2000 hour and up bracket.

So what will be the answer?? I think part of it will be that used equipment will track the used car market. A ten year old car usually sells for about 25% of new price. Used equipment guys are used to ten year old equipment being worth 40-60% of new. So the value will fall on the newer larger used equipment.

An example of this is the JD 9610 combine. A good JD 9510 will out sell the JD 9610. IH 1680s combines are the same way.
 
I use old stuff. As long as it is reliable I have no problem using something that is 50 years old or more. I have no fear digging in and working on it or running it hard. I will admit that in the last couple of years I have considered buying a new tractor. Just once in my life I tell myself.

When a bearing goes out on something old I can get one from orscheln and be back in business in a couple of hours. Not so with precise machines. A friend has to sit and wait for things that you would consider common - most likely because they are so specialized.

Another neighbor thought he would get a new field cultivator. He trades up machinery like shoes. His new cultivator is huge. Deere has been out numerous times to weld on it. It has more welds than anything I use. I am convinced it is because you are pulling such large equipment from a single point - it is too large to hold together.

All my equipment is paid off. You feel a lot less poor when you aren't friends with the banker.
 
Ignoring our points of disagreement Wayne... pretty sure neither of us has any interest in dealer service.

There"s a new farm tractor I maintain for a client. I much prefer my older tractors. Neither of us has ever determined fuel economy, or care to. We don"t put on enough hours per year to pay much attention. I could have bought 10 of my 50 yr old Cats for what he paid for one new tractor. The last Cat I sold (at a profit) went to a new life in Peru after it served me well.

Simple economics.

I"m car-shopping and have no use for pre OBD II. I want an expensive toy, without having to pay much. Found an ideal candidate: an unbelievably complicated car that dealer service is so expensive to maintain the price on a decade old one is very low. With that much history, it"s easy to determine what tends to fail and which systems don"t have problems. Would you believe a typical repair bill for a badly designed broken glove box handle is nearly $1k? OTOH, the system that determines exactly how much power to supply each wheel (AWD) according to driving conditions doesn"t break.

I"ll pay around $5k for a car that cost almost $40k new (now around $60k) and still has more miles left in it than I"ll ever drive. The only way this could happen is with the advanced systems, and a $150 repair manual. I downloaded the diagnostic codes: 21 pages of small print. Tools, you buy what you need, including diagnostic ones.
 
I see your point, but if what you say was entirely true, no heavy equipment would be manufactured new today because nobody would buy it. You wouldn't be able pick up used equipment for a fraction of the price of new because nobody would be selling it and buying new.

Conclusions:
1. Heavy equipment manufacturers, like all other manufacturing companies, can only build what their customers will buy. Clearly there are customers would want those same features you despise.
2. Companies can't justify spending hundreds of thousands of dollars on new equipment if it's more profitable to operate the old stuff. Now it's up to the management of a company to decide what's acceptable in terms of interest costs, depreciation, downtime and productivity, but at least some have made the calculation that they'll make more money if they buy new equipment.
 
Just my 2 cents worth..

70's era auto or truck for that matter, rock bounces off poorly tarped truck and smashes headlight.

Repair: get sealed beam from auto parts or department store. Apply screwdriver, remove trim ring unplug lamp and plug in new lamp.Replace trim ring. Cost in todays dollars, $20

Fast forward to today. same rock.

Repair: remove plastic lens and usually integrated turn signal assembly. Can involve removal of front fender. Buy replacement parts from dealer. Many of these parts only available from dealer or body repair shop. Replace capsule, Reassemble. Requires skilled mechanic.

Cost: $150 to $600 or more.

Progress?
 
A friend of mine has a Ford Jubilee. A wheel bearing went out so he drove 3 miles to the New Holland dealer. He told the parts man what he needed and said he knew they wouldn't have the bearing but asked if the parts guy could tell him where he might find parts for such an old tractor. The parts guy smiled and said we stock parts for your tractor.
50 years from now what are the chances parts will be stocked for what's being built now?
 
(quoted from post at 15:22:21 10/27/13) Just my 2 cents worth..

70's era auto or truck for that matter, rock bounces off poorly tarped truck and smashes headlight.

Repair: get sealed beam from auto parts or department store. Apply screwdriver, remove trim ring unplug lamp and plug in new lamp.Replace trim ring. Cost in todays dollars, $20

Fast forward to today. same rock.

Repair: remove plastic lens and usually integrated turn signal assembly. Can involve removal of front fender. Buy replacement parts from dealer. Many of these parts only available from dealer or body repair shop. Replace capsule, Reassemble. Requires skilled mechanic.

Cost: $150 to $600 or more.

Progress?
That reminds me of a friend who's wife had a Mercedes SUV. The headlight burned out. There was a problem with the socked the bulb plugged into. Cost to replace the bulb and socket was $550+.
 
And the tractor version:

2005 JD 4010 Compact Utility- no start condition, blows the big fuse immediately. After making one wrong guess on which module was bad (and foolishly thinking the tech manual was correct), get the JD tech out- its the fuel shut-off module. Final cost, about $500.00

1963 IH 504D- fuel shutoff problem. New choke cable from NAPA, cut to length, install in about 10 minutes. Final cost, about 6 bucks.

Don't know how much more progress I can afford.
 
The problem is the only stuff left from years ago is the reliable stuff that has parts available. All the stuff that was garbage or impossible to get parts for has been crushed or parked. All the brands that went bankrupt in the 70/80's are gone now so you don't have to deal with them. Must be about 20 or 30 forklift brands that disappeared then, same with other equipment.

There has been a slew of folks trying to unload first generation excavators around here and they just don't sell. Most have been scrapped so replacement parts are impossible. The controls and cabs are clunky and uncomfortable so no one wants to run one. Diagnosing a massive relay cabinet on an old electric over hydraulic machine I suppose is possible but isn't much funner than getting a tiny control board fixed and they fail a lot more often.
 
What I see are the guys that buy the equipment griping about the very things the mfgs say they put on the equipment "because the customer asked us to". Then you've got the whole emissions deal where many municipalities have regulations that force equipment owners to have the newest stuff to work within their boundries, etc, etc, etc. In the end all that adds up to companies being forced to buy new equipment. That said, companies that can afford to do things like that can also afford to buy new machines within a 'known failure period' therefore keeping their equipment either within warranty periods, or able to be sold before known wear problems arise. Too, they often buy a fleet of all one brand equipment. Doing things like this they can then afford to also buy the diagnostic equipment to work on their own machines, cutting the dealership (and the high cost involved there) out of the picture. The problem is that most folks like us (The small businesses) can't afford to do things like that. All we need is a machine that is reliable, easily and cheaply repairable when it does break, and does the job we need it to do....without a lot of bells and whistles.

As far as the tax thing goes. Again, most big contractors can afford to buy new, and depreciate the cost of a machine over several years, if they keep it long enough to get a full depreciation out of it. That's one of the things that makes the whols scheme of letting businesses depreciate a large amount of a purchase the first year so attractive nowdays is that many large companies don't let their machines hang around long enough to get a full return on their investment via depreciation otherwise. On the other hand you can often buy say an older D9 CAT for around $35,000. Take that machine and do a complete ground up restoration/rebuild and you'll end up with around $120,000 to $150,000 in what amounts to a brand new machine. of that cost the $30,000 purchase price is depreciated out over time, no problem, while the 'cost of repairs' is immediately depreciable. In other words your 'return' immediately in the way of a tax break, and not having to stretch it out over several years like the company that bought brand new. In the end both machines, new and old, are doing the same thing and moving dirt. The biggest difference is that the older CAT will still be pushing dirt when the new one is in the bone yard because the computer that controls the engine is either obsolete or costs as much as another new machine. On the other hand the rod ball ends, and the pieces of threaded rod that control the throttle on the old D9 are readily available at the local supply house.

In the end I believe new will always have a place for some folks, and for some reasons. The problem that new and 'way too complex' needs to go back where it came from....at least in the equipment field.
 
Boy, I have a different memory. In the 70's nothing was very reliable or bullet proof. The government was forcing technology that was not ready and the vehicles were a problem.

However, that forced technology, made for todays great running vehicles, with much better mileage and solid reliability.

The worst car on the road today is great by comparison.

I hate to be caught on the highway behind some old heap pouring out raw gasoline and horrible fumes. How did we survive that back then?

My old 2003 farm S10 has 112,000 miles on the original sparkplugs and never a tuneup.
Headlight burned out and the guy at Advance auto personally changed it for $12.

I don't miss 1000 mile oil changes, 8000 mile tires and constant tuneups.

Yep, if a computer module goes, it means a trip to the dealership, and if my back goes out it means a trip to the Dr.
 

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