Monday, August 13, 2012

What is the Difference Between Crane Manufacturers and Crane Builders

Crane Manufacturers vs. Crane Builders

I decided to write this article to help overhead crane owners to understand what the main differences are between "Crane Manufacturers and Crane Builders?"

Let's look at the first Crane Manufacturers to get a better understanding.

Crane Manufacturers

Crane manufacturers are typically companies that not only assemble all the crane components (as seen in the image)  but are also involved in the manufacturing of their own major components such as the hoist, trolley, motors, gear-reducers, hook block components and in some cases the electrification systems mainly festooning.  

The industrial term often used and referred to as: Original Equipment Manufactured (OEM) are really the Crane Manufacturers.  Where all engineered parts are designed by engineers that work for the OEM and have part drawings as well as a bill of materials of the listed parts that came original on the crane.  Crane drawings have a reference number which in most cases is the serial number printed largely on bridge or mast of the crane.

If the OEM did not make the product or component, chances are they have set up a name label branding business deal and unless you know anything about that product you would never know who actually made the product.  

C - CLASS (less robust)
A - CLASS (heavier duty)
Both radios made from the same manufacturer but has different classes.  The  yellow one (TOP) will break more often than the orange one (right).  Yes they have similar parts!

A good example is radio controls and a company like Konecranes DOES NOT make their own radio controls but have it branded with Konecranes logos on it.  Be careful! Since some branded products can have a less class in quality design than other classes too with different brands that are made by the same manufacturer.  In my opinion this is an unethical business approach.

Unfortunately, Crane OEMs have in the last 10 years have been making less robust hoists, motors and gearboxes and have strayed away from building good long lasting quality components for the hoist, trolley and motor drives.  Where things were built better in the past and today's crane OEMs have now become more interested making weaker products (like hoists) and more interested in selling more parts since the equipment doesn't last as long as it used to.  So what does this mean?  Crane companies in my view are really parts companies disguised as crane manufacturers.

Lately, many companies that use cranes are becoming more aware of this phenomenon and looking to obtain older discontinued equipment for their own manufacturing operations.  This is causing a huge increase of demand in the used crane and hoist market for various crane, hoist, trolley product models.

Crane Builders

The main difference and most important difference when comparing the crane builders to crane manufacturers is that the crane builder is just an assembler of other OEMs products and more importantly WILL NOT manufacture the hoist, trolley, motors, gear-reducers and hook blocks as well as the other mechanical and electrical components.

When dealing with a crane builder and acquiring one of their cranes, the disadvantage and problem is that these types of companies will work very hard in setting up exclusive business supply deals with suppliers of hoists, motors, electrical components and so forth. This situation makes it extremely difficult to obtain these items from other sources than the crane builders. 

This inherent problem will make an owner of such a crane to be too dependent on the crane builder to supply the parts and the crane builder company will take advantage of this exclusivity by over-charging too much on the cost of acquiring the parts.

One example of this is the Kuli hoist manufacturing company from Germany where if you purchase this type of hoist there is only one place in North America where you can buy the parts and the hoist distributor can and will charge whatever they want for the parts.  And don't try to contact the OEM's email or phone directly they won't help you!  Please do not fall into this trap before it happens.

Crane builders in some case will remove or put false name plate information on the crane and it's components as to cover-up the real or true information.  I have been called to provide consulting many times in this area to uncover what the parts are for various components with missing name plates.  It is difficult to do but it can be done (good news).

What can crane owners do then?

Here is a list of tips you can consider when deciding to buy your crane from an OEM or a Builder:
  • Research all the OEM companies that affect all the areas of the crane and find out what their supply rules are? 
    • How can you source your own parts?
    • Which avenues you can use to supply your own parts?
    • What information will the crane providers give you related to your crane?
  • DO NOT BUY EQUIPMENT WHERE PARTS ONLY COME FROM ONE SOURCE!
    • I cannot stress how important this point is any stronger.
    • Both crane manufacturers and crane builders are guilty of forcing this on their customers.  Trapping the customer for years in over paying for parts. There are many ways to not becoming trapped.
  • Consult with an expert before you make your final decision on which crane to buy.
    • If you don't know the inside rules of the crane industry you will end up being taken advantage of for years to come.
  • Don't buy a crane where only one crane service company only knows how to fix it!
    • As equipment becomes more high-tech less.
If you have any questions related to this article contact MHE Control Systems today.

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Article by:  Bill Hallett, President and expert in Overhead Cranes.


Bill specializes in implemention of true preventative maintenance programs for crane owners and is also  an overhead crane maintenance and parts specialist for over 16 years.  Bill has also created his very own Maintenance Optimization software for overhead cranes called:MHEControl
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