UTE turns to used equipment to support construction boom

Thursday, 26 May 2011 00:00 - - {{hitsCtrl.values.hits}}

The growing demand for construction equipment fuelled by the resurgence of the sector, has prompted United Tractor & Equipment (UTE), the sole authorised dealer for Caterpillar in Sri Lanka, to commence imports of pre-owned (used) earthmoving machines and power generators.

The company has announced that pre-owned earthmoving machines and power generators will now be sourced through the global Caterpillar network. Prior to importation, the equipment would have been maintained by Caterpillar dealers in their countries, enabling United Tractors to provide an assurance of quality, the company said.

A comprehensive condition report will also be provided together with each item enabling customers to obtain a thorough understanding of all aspects of the item they purchase.

The well-established product support system utilised by the company to provide parts and services to its customers for new products will be also leveraged to provide support to buyers of pre-owned earthmoving machines and power generators, Dimuthu Udugamasooriya, sales manager-rental and used equipment of UTE said.

“Even the purchase of pre-owned earthmoving equipment or a power generator entails a sizable investment,” he said. “Therefore it is important that such equipment is obtained from a reliable supplier, who is capable of providing spare parts and professional after sales support.”

Udugamasooriya noted that many entry-level contractors at present purchase used earthmoving equipment and power generators due to the lower initial investment. However, UTE’s entry into this market segment will add more value at the time of purchase. These include higher resale price, lower operating cost, availability of parts and regular free inspection services.

“The current market situation is a lottery, where customers find it very difficult to know whether their purchase was worthwhile or not,” Udugamasooriya said. “Therefore we want to provide our customers with confidence and peace of mind that their investment is good and can be protected.”

He said many buyers are also unaware that some domestic models specific to the source country cannot be easily supported by dealers in other countries and are left in the lurch when these models break down or need maintenance.

Prior to commencing importation of pre-owned earthmoving machines and power generators several steps were taken by UTE to strengthen its presence in the market for pre-owned construction equipment. In addition to the appointment of a sales manager specifically in charge of the sector, efforts were made to improve ties with Caterpillar dealers in countries such as India and Philippines whose markets are similar to Sri Lanka, the company said.

United Tractor & Equipment (Private) Ltd (UTE) has been the sole authorised dealer for Caterpillar earthmoving equipment, power generators and Forklift trucks in Sri Lanka since 1947.