How Are Tier 4 Engines Affecting the Construction Marketplace?

Every year it seems like engine manufacturers are breaking new ground with innovative, emissions-compliant, off-highway diesel engines. As painful and expensive as engine emissions regulations are, they are forcing the industry to innovate on a massive scale, but how is it affecting the construction industry? We have access to some of the cleanest, most efficient and most powerful engines ever created, but what’s the adoption rate of these engines?

How much is it costing the industry?

EquipmentWatch, a world leader in data, software and insights for the equipment industry, has decided to find out, recently releasing its 2016 Tier 4 Benchmark Report. Developed in partnership with the Association of Equipment Management Professionals (AEMP), the report analyzes responses from more than 300 major equipment and rental companies to measure the true impact of the Tier 4 Final transition on the equipment industry.

“This is our second annual report, and Tier 4 equipment trends are taking shape more clearly across the industry,” said Garrett Schemmel, vice president and market leader with EquipmentWatch. “We’ve taken a comprehensive approach, examining everything from purchasing trends and life cycle expectations to the effect on total cost of ownership. This is a must-have report for fleet managers, equipment dealers and finance experts, as well as OEMs.”

The 2016 Tier 4 Benchmark Report reveals key trends identified from the responses of more than 300 major equipment and rental companies, including:

  • • There has been Tier 4 growth within fleets, but saturation is still really low.
  • • Overhaul for some types of Tier 4 equipment could potentially be happening in the next couple of years, and 65 percent of respondents expect overhaul costs for Tier 4 to be more expensive than Tier 3 overhaul costs (19 percent more expensive).
  • • Wages for Tier 4 mechanics have increased $20 just since last year and were already more expensive than Tier 3 mechanics.
  • • The overwhelming majority of rental companies still rent Tier 4 equipment, but it no longer comes at an increased cost for customers.
  • • Equipment owners/managers still expect to see increases in purchase prices, maintenance costs and training costs, but there will be fuel costs savings with Tier 4 products.

To learn more, EquipmentWatch and AEMP have made this report available for free download at