How to Save Over $170K/Year with One Piece of Battery-Powered Construction Equipment

26.07.18 10:13 AM Comment(s) By Cratos

Cost savings come from dramatically reduced labor and fuel costs with battery-powered equipment for construction, demolition, and landscaping

As the electrification of the auto industry is exploding with new EV cars, hybrids, and heavy-duty trucks, the newest cost-saving trend for construction, demolition, and landscaping companies is battery-powered construction equipment.

Taking the lead from automobile manufacturers, machine engineering and production factories have spent millions of dollars on R&D to create electric equipment for these industries. And there are two major reasons battery-powered vehicles and equipment are the future:

1.  Saving the planet (while saving money)

The push to get away from gas and diesel fuel is not going away. Experts predict that we will eliminate the need for the combustion engine completely within the next 10 to 15 years. Many forward-thinking companies have evaluated the benefits of shifting from fossil fuels to electricity – and they like what they see.

2.  Huge economic benefits

The benefits of battery-powered construction equipment favor the environment, the machine operator, the customer, and the business. Shifting from fossil fuels to electricity is proving to create massive economic benefits. For example, the electrification of construction equipment is a great way to lower costs for:

  • Labor
  • Fuel
  • Maintenance

Plus, many companies are now discovering that by utilizing battery-powered equipment, they are experiencing a better safety record, increased production from their labor force, and significant health benefits in the form of fewer emissions and noise pollution.

$0 to $30 per week vs. $300 per week

Over the last 15 years, we’ve learned from cars that each of us can save a bundle by switching from gas-powered vehicles to battery-powered vehicles. How much? It varies, but the average EV or hybrid vehicle owner spends from $0 to $30 per month on fossil fuel, while the gas-guzzlers spend upwards of $300 per month.

To find out the true economic benefits of battery-powered construction equipment, let’s do a quick comparison by evaluating one piece of battery-powered “green” construction equipment compared to using equivalent manual labor and/or combustion equipment.

Upfront cost of battery-powered vs. combustion engine equipment

It’s important to note that the purchase of new battery-powered equipment tends to cost 20% ̶ %30 more than traditional combustible-engine tools – but this hit is only up front, and the equipment quickly pays for itself. Here is a brief run-down on where the savings occur:

The biggest savings comes from labor = $3,300/week

Depending on the project and the materials, the biggest cost for construction, demolition, and landscaping is typically labor. The labor expense can range from 20% to 35% of the total cost of the job.

You don’t have to be a rocket scientist to operate a skid steer. In fact, it’s quite simple and is considered an equivalent general labor cost at about $15 per hour. Five laborers can be replaced with one skid steer operator. This would make your labor costs for a 50-hour work week $15 + $1.5 (for insurance and WC) = $16.50 per hour = $825 per 50-hour work week.

The Sherpa 100 ECO (or any similar skid steer), often replaces five workers at $16.50 per hour, which would cost $4,125 per week.

LABOR SAVINGS = $4,125 - $825 = $3,300 savings per week in labor = $165,000 per year

When you see how easy the Sherpa 100 ECO skid steer is to operate, all the jobs it can perform (with and without attachments), and the load it can carry, it’s evident how it replaces this manpower. The Sherpa 100 ECO is also engineered to work indoors: it can fit through 30” door openings, it’s dimensions are elevator friendly, and it weighs under 1,600 lbs. It also works quietly with little noise pollution and zero emissions.

The second biggest savings is in fuel costs = $141.75/week

The average price today for gas or diesel is about $3.00 a gallon, sometimes a little more or a little less. A diesel-powered skid steer (with similar specs as the Sherpa 100 ECO) burns 1-1.5 gallons per hour and has a 6.5-gallon fuel tank. This means that during a 10-hour work day, it burns about $30 of fuel per day, which is $7,200 in annual fuel costs, assuming a 5-day work week.

Compare this to $8.25 of electricity per 50-hour work week

Since the Sherpa 100 ECO is battery-powered, it has zero cost for gas or diesel. In fact, it costs about $8.25 per week in electricity to charge a skid steer for a 50-hour work week. When you do the math, the savings are about $396 per year in energy costs.

Total Fuel Savings of Electric vs. Combustion: $6,804 per year

If you’ve ever wondered how you can afford to buy a battery-operated skid steer, the real question is how you can afford not to buy one – it represents a potential savings of over $170,000 per year, between fuel and labor.

The biggest practical advantage for battery-operated construction equipment

Except for a few construction companies, most of the equipment you see on sites still run on fossil fuels. There is no doubt that is going to change sooner than many think. Acquiring and utilizing battery-powered equipment is a fantastic way to show your employees and clients that you care about your staff, your clients, and the planet. It’s also a good way to get new clients, many of whom are prioritizing more sustainable firms.

If your work is indoors, it’s the clear way to go

If your work sites are in any of the following areas where noise pollution and toxic exhaust are prohibitive, battery-powered equipment is a great addition to your fleet. It is compliant with indoor air standards set by OSHA, making it perfect for projects in:

  • Shopping malls
  • Selective demolition
  • Interior gut-outs
  • Concrete and slab removal
  • Recycling
  • Industrial and office buildings
  • Historical structures
  • Hospitals, schools, hotels
  • Landscaping for schools, parks, and recreation where noise pollution is an issue
  • Operational facilities such as airports, military bases, federal buildings, and municipal facilities

To learn more about the benefits of battery-powered tools, contact Cratos Equipment at (833) 4Cratos, or just fill out our online contact form. We have a great line of battery-powered mini skid steers and electric  wheelbarrows with an array of accessories and attachments engineered to help you do practically any job – indoors or out.

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