Issue 1 - Hitachi

A HITACHI CONSTRUCTION AND MINING PRODUCTS PUBLICATION
FIRST ISSUE 2009
Sustainable harvesting — page 4
Pipeline pressure — page 8
Thriving at the end of the road — page 10
Product comparison — page 13

ON
the
INSIDE
Navigating the rough economic current
Gloomy forecasts and
a general sense of unease
are definitely in fashion
these days. Recent volatility
in the financial markets
is largely responsible, of
course. Weighing options
and deciding how to navigate
the predicted choppy
economic seas in 2009 is
a daunting task for contractors
and equipment
manufacturers alike.
Although I can’t offer you specific advice on how to
guide your company through these uncertain times, I
want to stress that our strong Hitachi dealer network
will continue to place you in the equipment you need,
while delivering the service and support you’ve come
to expect.
Hitachi will continue to provide you with the
equipment for your unique needs during these uncertain
times. John Deere Credit will continue to provide
unique financial solutions to assist you in protecting
your cash flow. John Deere has been serving customers
for more than 170 years. So, you can count on
the solid foundation and backing of John Deere
Credit. We value your business and understand that
by working together to build lasting relationships,
we all succeed.
Together, we remain committed to you.
Luke Gakstatter,
Director, Hitachi Construction Products
Factory-backed
security
T
here’s enough day-to-day stress in
the construction business without
worrying about unpredictable machinerepair
expenses. That’s why you owe
it to yourself — and your bottom line
— to find out about the various Hitachi
Extended-Coverage warranties.
Extended-Coverage warranties are
factory-backed and flexible enough
to meet the needs of any business or
Extended-coverage warranties are honored
by all Hitachi dealers.
government agency. They are a valuable
management tool because they give you
fixed costs for machine repairs over a
given period of time.
The Standard warranty on construction
machines under 100 horsepower
is designed to cover all failures due to
defect in workmanship or materials for
the first 12 months after delivery, free
of charge. For units 100 horsepower
and higher, coverage is for the first six
months, again free of charge.
But many owners feel they need more
protection. So we offer Full Machine
and/or one of three Powertrain options
(Powertrain Plus Hydraulics, Powertrain,
or Engine Only). Maximum coverage
ranges from 500 to 10,000 hours
and 12 to 84 months.
The exclusive StructurAll warranty
provides three years or 10,000 hours
(whichever comes first) of “no-fear”
coverage on major machine structures
as installed at the factory free of charge
— including booms and mainframes.
Our Extended-Coverage warranties
are honored by all Hitachi dealers.
They go where your machines go and
can be redeemed for service at any
North American dealership. They can
be transferred when you sell or trade
the unit. And financing is available
through Hitachi finance programs.
All you need to do is perform
scheduled maintenance as outlined in
the Operator’s Manual and Extended-
Warranty contract, and keep accurate
maintenance records. Fluid analysis
is required on most machines with
new Extended-Warranty contracts
or extensions.
So if you’re ready for some extra
protection, contact any branch location
for more information about the Hitachi
Extended-Coverage warranties.
3

ONLINE VIDEO
ONLINE VIDEO
ONLINE VIDEO
Sustainable
harvesting
“W
e’re a family-owned business,”
says Mark Gustafson, coowner
of Gustafson Logging. “We’ve
been operating for about 34 years now
in Northwest Oregon’s Coast Range,
primarily for commercially owned
timberlands.
“Our business philosophy is to
make ourselves as productive as possible
while outputting quality logs and
timber products — the kind the people
we work for want to see on a regular
basis. And to maximize production
on a sustainable, regular basis, you’ve
got to keep up the quality of your
work. That means not only producing
logs, but taking care of the environment.
Doing all the things that are
required, not only by regulation, but
by simply being a good steward of the
ground so we can prepare the way for
future harvests.”
Mark Gustafson, Co-owner, Gustafson Logging
Gustafson continues, “We’re working
on private ground, so there are
stipulations the timber companies must
follow as they try to be as ‘green’ or as
sustainable as possible. They have all
become Sustainable Forest Initiative
(SFI) certified. Places like The Home
Depot ® will buy lumber only from
timber companies that are SFI certified.
In other words, they’re not overcutting
their stock, and they’re not razing
the land in any cut-and-run manner.
They’re in it for the long haul.
“Consequently, loggers on the property
must work within the constraints
of that certification. We have to be
certified as professional loggers. To do
that, we must take a certain amount
of classroom instruction on an annual
basis through seminars and meetings
put on by either the State Department
of Forestry or the Association of Oregon
Loggers. It’s just like keeping your
teachers’ certification current. You have
to keep up to date with new changes
and regulations ranging from road
construction and harvest practices.
In other words, today’s timber companies
aren’t going to hire somebody
who’s not good at what they do. And
a logging company’s not going to stay
in business unless they’re good at what
the timber companies want done on
their property — so they can stay in
compliance … and therefore be able
to sell their lumber.”
The Gustafsons feel they serve their customers
best and make more profit by replacing their
log loaders and delimbers every 7,000 hours.
Jobs with 30-degree-plus slopes are cut by
hand. The timber is then brought to a landing
with cable yarders.
A stable crew is essential. The Gustafsons
feel fortunate to have a number of long-term
employees. Their company and crew were
even featured on the History Channel series
“The Ax Men.”
4 5

“I was part of the Customer Advocacy Group
developed by DHSP, builder of the Hitachi
and Deere forestry units. When it was decided
to come out with a new series, DHSP brought
the group to the plant, where we brainstormed
with their engineers. The result is a machine
with the features we felt were important. This
new series is fuel-efficient, responsive, and
tough. The cab was already great, but now
it’s even better.”
Clay Gustafson, Co-owner, Gustafson Logging
In order to be as productive as possible,
Gustafson Logging has been relying
on Hitachi forestry equipment for
the past 10 years.
“Ten years ago we decided that there
were certain pieces of equipment that
you could run for an extended amount
of time,” explains Gustafson. “Our
yarders, for example, are a long-term
investment. Log loaders and stroke
delimbers are critical as they need to
be running all the time. If they stop,
the meter keeps ticking as long as the
crew is on the job. And if they stop,
production stops. So, we trade every
7,000 hours. Interestingly, our productivity
has increased 15 percent and our
maintenance costs have decreased 40
percent, so the practice has dramatically
improved our bottom line. You
hear about others who might boast of
having 20,000 hours on a log loader,
but with our common radio setup, you
hear talk about breaking down.”
“Years ago,” says Clay Gustafson,
Mark’s brother and co-owner, “we
got introduced by LinkBelt to the Isuzu
engine. Then, we moved to the Deere
2554 Log Loader. We were and still are
quite impressed with that loader built
by DHSP. But, we missed the Isuzu
engine. We think it has the best fuel
economy and lowest maintenance costs.
Moving on to the Hitachi provided the
best of all worlds. It’s a DHSP product
with an Isuzu engine. Another reason
we like working with the DHSP product
is our dealer, Papé Machinery. The
financing options available through
them and John Deere Credit are excellent.
It’s a strong dealership with great
product support. They don’t walk on
water, but they are excellent.”
Gustafson Logging Inc. is serviced by Papé
Machinery, Portland, Oregon.
“We’re incredibly happy with our new
Hitachi 290-3 log loader. It’s fast [and]
very efficient. The operator has been
singing its praises since Day One.”
— Clay Gustafson, Co-owner
6 7

Pipeline pressure
A year’s work in three months
Packages of multiple-diameter pipe, insulated
and exposed, make the job even more difficult.
“W
e’re a pipeline utility company,”
says Rob Shipway, general
manager of Fabcor in Grande Prairie,
Alberta. “We lay two-inch right up to
24-inch pipe for the oil and natural gas
industry,” says Rob Shipway, general
manager of Fabcor, Grande Prairie,
Alberta. “We run about 120 pieces of
track iron throughout Alberta and British
Columbia, and we work a lot going
through the tough Canadian Rockies.
So, we utilize our Hitachi excavators to
the fullest.”
Because of the soft, wet conditions
in the lowlands of Alberta and British
Columbia, all pipelines with any distance
to them are worked during the
winter, after the ground has frozen.
“Eighty percent of our year’s work
is done during the three months of
January through March,” adds Shipway.
“So we’ll go from a skeleton
crew of around 100 to 500–600 employees
and contract workers. We also
go from an easy-going attitude to one
of intense pressure.”
Although the drop in crude prices
has caused the industry to slow down,
It’s a two- to three-kilometer march each day
through soil conditions ranging from muskeg to
hard rock.
the larger pipe market is still strong.
“We’re looking at 70 kilometers of
24-inch pipe for this winter in the Fort
Nelson, British Columbia, area. That’s
where the big plays have been this year,
and the pipeline is needed to complete
the effort,” says Shipway.
It’s a fascinating problem getting
ready for the annual stretch of intense
Joe Bachand, Fabcor Equipment Manager, Rob Shipway, General Manager, and Darren Kutschinski, Wajax
Sales Representative. The Fabcor fleet of Hitachi excavators can grow to 70 during their winter three-month
winter stretch.
activity because the jobs often aren’t
locked in until late fall. So the company
must begin preparation for work
they believe will come, but for which
they have no signed contracts in hand.
Needless to say, this is an industry that
relies heavily on trustworthy equipment
suppliers.
“My choice of Hitachi is based
on two things,” says Shipway. “First,
Wajax, our Hitachi dealer, is tuned
into our needs as a pipeliner. Although
we have around 25 excavators of our
own, we usually end up with as many
as 70 on the job by mid-January. These
are excavators we’ve either rented from
Wajax for the three months or owneroperators
who have their own Hitachi
units. Wajax gears up for the winter
work with extra parts and replacement
machines. The people at Wajax, from
top management down, understand
that when we need something, we need
it now.
“The second reason is that Hitachi
’hoes are the most dependable. And I
think the Hitachi ZX350LC-3 is the
best overall excavator on the market
when you look at balance, reach, and
power. The operators definitely do love
the Hitachi cab. And I guess everybody
knows that Hitachi’s fuel efficiency
definitely saves money.
“Pipeline construction is much like
a factory,” says Shipway. “There’s a
process to it. It’s very repetitious. On
that 70-kilometer job, we’ll get it down
to a two- to three-kilometer-a-day
march. That’s from grade to stringing
to welding to cleanup. So, you’re talking
about covering a lot of ground in
a hurry. If one part of the operation
fails, we don’t get our production. And
that’s the whole thing — you’ve got to
get in and out with your iron and keep
it working.”
Fabcor is serviced by Wajax Industries of
Grande Prairie and Edmonton, Alberta.
8 9

Thriving at the
end of
the road
Located at the southernmost end
of the Alaskan Highway, the
picturesque town of Homer attracts
adventure seekers, independent types,
and colorful nicknames like “Cosmic
Hamlet by the Sea,” “Halibut Capital
of the World,” and “End of The Road.”
The last was bestowed by famed storyteller
and Motel 6 ® spokesman Tom
Bodett, who once made the small town
his home. What many people may
not know was that Bodett worked in
construction before he turned writer
and raconteur.
“Yeah, I knew Tom,” says Ray Clapp,
President, Coast Range Construction,
Inc. “Tom moved here from Michigan.
He was an independent building contractor
and I was a carpenter. That was
in the 1980s. Of course, Tom hit the big
time and later moved to Vermont.”
Like Bodett, Clapp migrated to
Alaska from the lower 48. Originally
from Oregon, Clapp always wanted to
go to the Land of the Midnight Sun, so
he put his tools, hang glider, and kayak
on top of his truck and headed north.
He drove all around the state and even
worked in the bush, but decided he
liked Homer best and settled there.
Where Land and Sea Meet
Clapp’s construction company, one
of a competitive handful in the area,
specializes in setting foundations for
Ray Clapp, President, Coast Range Construction
lodges and cabins and doing house-site
development for contractors. Taking
advantage of the barge and ferry terminals
in the area, as well as the highway,
Clapp is able to move his equipment
wherever the job might be. What distinguishes
his company from the others
is what he calls his secret weapon —
a Hitachi ZX200LC equipped with a
Helac ® quick-coupler.
“With the help of CMI, our area
Hitachi dealer, we put two sets of hydraulic
piping on the machine. One set
is high-pressure low-flow, and the other
is low-pressure high-flow. That way, I
can run all kinds of attachments, and
do whatever it takes to do the job.
“I even have a small vibratory plate
hammer for pile driving in tight areas.
Usually, I can work from the land, but
sometimes we drive in dock pilings
using a barge as the platform. The
200 is a lot cheaper than bringing in
a large crane with a large hammer on
a big barge.”
Failure is Not an Option
Coast Range’s 200 has about 8,000
hours on it. To protect his investment,
Clapp decided he needed a second
ZX200LC — one for everyday digging
and stumping. He equipped it with a
more traditional quick-coupler and a
thumb-equipped bucket.
“I’ve owned an EX-3, an EX-5,
and several ZX-1s. I’ve rented others,
including a ZX350LC-3. We’ve not had
trouble with any of them. That’s the
reason I keep going back to Hitachi.
We’ve just never had any failures. I’ve
had other brands of excavators, and
downtime kills you. You’ve got to have
something that starts up day in and day
out. No matter how cold it gets, the
Hitachi units fire up in a heartbeat.
They don’t even struggle.”
Although the Hitachis don’t struggle,
Clapp takes no chances. He’s adamant
about keeping on top of scheduled
maintenance. And when it comes to
greasing, he admits he’s obsessive —
greasing every 8 to 10 hours. “We’ve
never had to replace any pins,” he
points out. “In fact, I’ve never had a
hydraulic failure or even a motor failure.
I think the biggest thing I’ve had
to replace is a fan switch.”
The ZX200LC, equipped with a Helac PowerTilt and
a small vibratory plate hammer, is perfect for pile
driving in tight areas.
There’s not a lot of commercial work in Homer, so
the bulk of what Coast Range does is house-site
development for contractors.
Operators and management alike prefer Hitachi.
10 11

Transportation by barge and ferry gets the
equipment to areas not reachable by road.
Versatility is Popular
Coast Range Construction is busy
every month of the year. Winter grants
them access to areas normally boggy
and unreachable in warmer weather.
So once a good snow base has accumulated,
they’re often out in the bush
pulling brush or setting steel pilings for
lodges and private cabins.
Thanks to its size, the ZX200LC
Excavator can be barged, towed on
a sled, hauled, or walked wherever it
needs to go — whether by land or sea.
It’s accompanied by a small all-terrain
vehicle that carries the various attachments.
“The Hitachi does all the work.
We can’t do anything without it,”
says Clapp.
For years, Coast Range was the only
company to use a power tool on its
excavator. But since other area contractors
have caught on, it’s been open season.
And no wonder. Much of Homer
is set on hillsides, so slopes and grades
are the norm. Thanks to the dual piping
and the Helac’s rotational versatility,
Clapp can wield his Hitachi with
surgical precision, cutting all the slopes
and angles with one machine. He’s even
been able to ditch his small dozer as an
unnecessary piece of equipment.
“It’s getting pretty competitive,”
says Clapp. “I’m not running out of
any work, but I do try to stay ahead
of everyone else, always looking for
that next specialty tool. I’m working
on one idea now, but I can’t share it —
it’s a niche that no one else has so far
in our area.
“I typically work by the job, not by
the hour. I know what my Hitachis
can do and how fast they can do it.
By quoting a final number, rather than
a per-hour rate, my customers know
what the final cost will be. Leaving it
open-ended by the hour scares them
off. And really it’s to my benefit quoting
by the job, because I’ll usually make
more money that way.
“If I have a project where I need
to lease some excavators, Hitachi is
always my first choice. For those rare
times when I end up with another
brand, we get the job done, but my
guys come back shaking their heads.
Even if I have to drive twice as far to
get my hands on a Hitachi, it’s always
my first choice.”
Coast Range Construction, Inc. is serviced
by CMI Equipment, Anchorage, Alaska.
Product comparison
Hitachi Zaxis vs Link-Belt X2
Hitachi ZX200LC-3, ZX350LC-3, and ZX450LC-3 vs. Link-Belt 210 X2, 350X2, and 460 LX Tier-3
THE REVIEW
Link-Belt’s description of their X2 Series sounds like it came straight out of
Hitachi Dash-3 product literature. Fuel-efficient Isuzu engines, finely matched
hydraulics, hydraulic system regeneration, large cab with lots of legroom —
it’s all there.
So what’s the real difference Why should you go with Hitachi instead of
Link-Belt Here are four excellent reasons — productivity, design, uptime, and
daily operating costs.
Productivity Study
In December 2007, Hitachi conducted a head-to-head productivity test between
a ZX200LC-3 and a Link-Belt 210 X2. Both machines were equipped with the
same boom and arm lengths, buckets, and type of teeth. Professional operators
were at the controls as each machine dug 20 minutes of 10-foot trench one
bucket-width wide.
The Hitachi moved seven-percent more in its HP mode. That’s 30 more feet
of trench in an hour, 300 feet in a 10-hour day, or 1,500 feet in a five-day workweek.
The ZX200LC-3’s productivity advantage clearly would save you time
and money via its ability to wrap up jobs more quickly.
Comparing specs, you’ll see a lot of similarities. But in several critical areas,
Link-Belt doesn’t always measure up.
Hitachi ZX200LC-3
Link-Belt 210 X2
Lift Capacity
(over side, at ground at 25 ft.) 6,619 lb. 6,250 lb.
Drawbar Pull 45,620 lb. 42,534 lb.
Swing Torque 50,662 ft.-lb. 47,204 ft.-lb.
Maximum Swing Speed 13.3 rpm 11.5 rpm
12 13

Comparing the two 350s, Hitachi has 14-percent more drawbar pull and
nine-percent faster swing speed. And when reviewing the 450/460, Hitachi has
60-percent larger engine displacement, five-percent more hydraulic flow, fourpercent
more drawbar pull, nine-percent more arm digging force, six-percent
more bucket digging force, and 10-percent more lift capacity.
Let’s do more side-by-side comparisons.
Hitachi ZX200LC-3
• Extra glass on right side and better overhead
visibility with a full, tinted roof hatch
that comes with a sunshade.
• More legroom — 15.75 inches from
the seat pedestal to the propel levers,
allowing the operator to use the heel for
fulcrum when metering propel.
• Smoother and more predictable to operate.
Try this test: boom up/arm in/bucket
curl while traveling.
• D-channel mainframe gives added
strength to the mainframe and extra
protection to the hydraulic pumps and
cooling package.
• End of arm has a tungsten-carbide
thermal-coated surface.
• Easily accessible ground-level engine
oil and fuel/water filters in the pump
compartment for easier servicing.
• Oil-impregnated HN bushings for
long life and trouble-free operation.
• Three boom bulkheads welded for extended
durability to reduce torsional stress.
• Monitor in cab has more features and is easy
to read. Track 14 service intervals, 32 operating
parameters, and all active trouble codes; adjust
auxiliary hydraulic flow; and program readings
in 12 different languages.
Link-Belt 210 X2
Overhead view totally blocked or
window must be opened completely.
14 inches.
Not nearly as smooth and predictable.
C channel.
Not equipped.
Not nearly as accessible.
Not equipped.
Doesn’t take this extra step.
Fewer features and much harder to read.
Fact or Fiction: Link-Belt costs less than Hitachi
Don’t just look at purchase price, look at maintenance and resale values as well.
Comparing the 200-metric-ton class of excavators, Hitachi will cost $4,180 less
in parts and labor during the first 8,000 hours of ownership.* As for resale value,
Hitachi excavators have historically been worth more than their Link-Belt counterparts.
For example, for 2002 to 2006 model-year machines, the average Hitachi
ZX200 auction price is $80,750, while the comparable Link-Belt is $69,952 — a
difference of $10,798, or more than 15 percent.**
So when you look at all the cost factors, Hitachi is less expensive.
*Cumulative cost comparisons completed December 2007 between machines at the same hour level reflect comparative costs even though the machine service cycles may be different
in order to calculate costs on a per-hour basis. Parts costs calculated at list prices. Labor costs based on a $75-per-hour labor rate for all machines. Labor performed by an independent
construction equipment dealer. Reported labor time based on productive work only. Breaks and preparation time are not included. Maintenance was performed in accordance
with procedures listed in the OEM Operator’s Manual. Mechanic was allowed to become fully familiar with the directions and procedures detailed in the OEM Operator’s Manual and to
gather all necessary tools prior to performing the work. All values based on required scheduled-maintenance events. Recommended activities and sampling are not included.
Not too big and not too small, the ZX135US-3 delivers all the
power, smoothness, precision, and ease of operation you
expect from Hitachi — in an easy-to-maneuver package.
The ultrashort tail-swing design gets right up next to curbs,
walls, buildings, and obstacles. And like other Dash-3 models,
it delivers increased swing torque, greater drawbar pull, added
stability, precise performance, and the power and
fuel efficiency of an Isuzu Tier-3 engine.
Come by one of our dealership locations and check
it out. The ZX135US-3 is perfect for underground utility
applications and a whole lot more.
**Average auction prices for 2002 to 2006 Hitachi ZX200 and Link-Belt 210 Excavators sourced on October 1, 2008 using the independent website MachineryTrader.com ® .
ALWAYS
PRECISE
14

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Hitachi Construction and Mining Products • 1515 5th Avenue • Moline, IL 61265 • www.hitachiconstruction.com