Replacement Of Capital Equipment

Lack of a system in scheduling the replacement of capital equipment can result in emergency purchases of units which may later be found unsuitable for the job. New York Trap Rock Corp., which produces crushed stone for use as construction aggregate, was faced with just such a situation some years ago. The company replaced capital equipment only when machinery in use was no longer serviceable, or when there was an obvious need for different equipment. Operating and maintenance costs were generally neglected because an efficient method was lacking. New York Trap Rock has four plants located along the Hudson River, all within 70 miles of New York City. Crushed stone output-6 million tons a year-is moved to markets in metropolitan New York, New Jersey, and Long Island areas by water transport. Customers are contractors with ready-mix concrete and asphalt plants located on the water.