Buying a new or used overhead crane : which option is better?

By Marc-André Martineau
Manager & Partner at Premium Industrial Group

Do you have an opportunity to purchase a used overhead crane? Are you hesitating between a used crane and a new crane? Are you worried about making a bad investment? 

With prices on the rise, you may be thinking that a used product could save you money. And that's understandable! Considering the investment involved in purchasing an overhead crane, the choice may seem simple. But to make the best decision, you need to be aware of the risks and hidden costs, as well as the requirements of current standards. Otherwise, you could make the wrong choice, miss your goal, and regret your decision. 

But rest assured. Since its foundation, Premium has collaborated on various projects involving used overhead cranes, such as relocations and modernizations. In addition, we inspect overhead cranes of all types and ages. We can therefore help you know how to approach this type of project. 

In this article, you'll learn : 

• What are the advantages and disadvantages of both options,
• How to know if a used overhead crane can be a beneficial choice,
• And how to choose the best option for you. 

Let's start by comparing the pros and cons, since there are some on both sides.

New overhead crane vs. used overhead crane: advantages and disadvantages 

Buying a used overhead crane may seem economical at first glance. Indeed, its main advantage is its lower purchase price. But its main disadvantage is its commissioning and maintenance costs. 

To ensure that the total investment is worthwhile, you will need to consider the cost of the investment over its entire service life.  

How do the costs of a used overhead crane differ from those of a new one? In the case of a used overhead crane, you will need to : 

• Bring the equipment into compliance using current standards, 
• Adjust the overhead crane to your building, 
• Check the price and availability of spare parts,
• Take into account its reduced lifespan, 
• Assess maintenance costs over its service life. 

Here are some tips to help you assess whether or not purchasing a used overhead crane is worthwhile. 

How can you assess whether purchasing a used overhead crane is financially advantageous? 

The purchase price of a used overhead crane can be much lower than a new one’s. But this attractive price can be misleading. Here's how to properly assess whether purchasing a used overhead crane is a good opportunity. 

What are the costs to bring your used overhead crane up to standard? 

Buying a used overhead crane does not exempt its new owner from meeting all the requirements of current standards. Here are a few things to check to avoid surprises. 

Documents 

The CSA B167-26 standard states that the owner of an existing overhead crane must "gather and document the information" specified "before using the lifting device" . This means that they must be able to demonstrate the compliance of their equipment at any time by presenting the required documents to the relevant authorities.

The problem is that, sometimes, the previous owner does not provide the documentation proving this compliance. But since you are now the new owner, you still have the duty to obtain it. To do so, you will need to contact either the manufacturer, the supplier, or an engineer. When compliance documents are missing, the process of obtaining them can vary and become complicated.

Engineering plans

If the sealed plan for the overhead crane is not available, you will need to hire an engineer, service for which you will obviously be charged. Another example : if there is no written proof of the rated capacity of the used overhead crane, an engineering assessment will be necessary to establish its actual capacity. If it proves to be lower than your requirements, you will probably decide to modify the equipment itself in order to reach the desired lifting capacity. These costs can be high and are difficult to predict, but they do add to the purchase price of the overhead crane.

Initial inspection and load testing

Before being commissioned, all overhead cranes must be inspected and load tested. This also applies to used overhead cranes.
However, since this equipment is used, the inspection or load test may reveal significant problems that will need to be addressed before it can be commissioned. These costs must also be considered.

Advice before purchasing

💡Check the information available on the overhead crane you are considering purchasing, and determine what is missing from the logbook. For example, if the latest maintenance reports (inspection, repairs) are available, they will give you an idea of the costs you can expect. Then, ask for prices for the missing documents and the work to be done. Try to anticipate the consequences of missing information and estimate the additional costs that will be involved. 

In addition, have an inspection and load test performed before proceeding with the transaction. Make a list of the work to be done on the equipment and obtain a cost estimate from a professional. Then add all of these costs to the sale price of the overhead crane.

What costs should you expect to adapt a used overhead crane to your building?

In most cases, the span of a used overhead crane will need to be modified to fit the new structure. This is because the chances of the distance between the runway tracks that will support the equipment being exactly the same as the previous runway tracks are quite low. Therefore, whether the span needs to be lengthened or shortened, engineering work will be necessary, as "no modification (...) shall be made" to an overhead crane "unless such modification has been evaluated and approved by an engineer"(CSA B167-26).  This means that engineering costs, in addition to adjustment costs, will be incurred to adapt the bridge crane's span to its new location. The welding work must, of course, comply with current standards (see CSA B167-26; CSA W47.1; CSA W59 and the BCS).

Advice before purchasing

💡Have the span of the used overhead crane and the span of the structure on which it will be installed measured, ideally by a professional. Have the engineering and modification costs assessed by a specialized company. Add these costs to the sale price of the overhead crane.

Where can you find replacement parts for a used overhead crane (and at what price)?

A used bridge crane may contain obsolete components for which replacements are no longer manufactured. In this case, maintenance can become complicated and increase the risk of prolonged breakdowns. As mentioned in the article " Overhead crane breakdown: how to limit production downtime costs ", operations shut down due to machine failure can be costly. Often, the older the equipment, the more expensive the parts. This cost must therefore be evaluated in the overall analysis.   
Let's take an example. Demag recommends replacing their P series hoists, which are now around 40 years old. Demag acknowledges: " The price of these spare parts continues to rise, while the availability of these same parts is declining ".

Advice before purchasing

💡Using the documents contained in the logbook, check the availability of spare parts and the price of the main wear parts with the manufacturer. Compare them with the price of parts for new equipment. The price difference can then be calculated and added to the investment calculation over the lifetime.

How can you estimate the maintenance costs of a used overhead crane over its lifetime?

As mentioned in the article " What are crane and hoist classifications? How do they affect you? " , it is very important to choose the right class of use for your new equipment in order to limit maintenance costs throughout its service life. However, you will not be able to make this choice if you opt for a used overhead crane. If your use of the equipment exceeds its classification, maintenance costs will increase significantly, as explained in the article " Overhead crane breakdown: how to limit production downtime costs ". These costs will increase throughout the lifetime of your overhead crane.

As mentioned in the box " What is the service life of an overhead crane " in the article on overhead crane classifications, it’s very difficult to determine the service life of lifting equipment. But it is certainly shorter than a new overhead crane’s. It may therefore be useful to evaluate this factor in your business plan.

Advice before purchasing

Have the classification of the used overhead crane assessed by a professional. Then calculate the projected maintenance costs over the estimated service life of the equipment. Although the result may not be accurate, compare it to a similar study of new equipment.
To help you with your assessment, see the section " How to evaluate the investment over the lifetime of your overhead cranes? " in the article " How to prepare a budget for overhead crane purchase ". And then, how can you make the right choice?

Compare the investment in new and used equipment to avoid pitfalls

By following the advice mentioned above, you will not only compare the sale price of your future overhead crane, but also the actual investment you are about to make. This will help you avoid hesitating for fear of making the wrong choice. You will be certain to make the best investment. To help you, here is a point-by-point table with articles containing useful information.

Are you currently looking at an offer for a used overhead crane? Where to start? Evaluate the price of a new overhead crane for a point of comparison. The page " How much does an overhead crane cost? " accompanied by the article " How to prepare a budget for overhead crane purchase " will not only help you determine a sale price, but also the investment over the entire lifetime.

Premium Industrial Group can help you with your comparison. Thanks to our various services and expert advice, you can move forward with your project step by step and then make your own informed decision.

Contact one of our specialists to discuss your project by clicking on "Contact a Specialist" at the bottom of this page.