The Customer
Lancaster Burns Construction, Inc.
Roseville, California | Est. 1992
Lancaster Burns (LB) Construction, Inc., located in Roseville, CA, is a multi-trade commercial and industrial construction subcontractor specializing in rough carpentry, metal studs and drywall, concrete and structural steel construction.
Projects range from gas station kiosks to 20-story buildings and everything in between. By performing multiple trades on a single project, LB Construction offers their clients an advantage that few competitors can match.
The Business Challenge
Before partnering with Red-D-Arc, LB Construction grappled with several significant challenges concerning the state of their welding equipment:
- Extensive downtime resulting from outdated/malfunctioning equipment
- Exorbitant amounts of time and money spent on maintenance/repairs
- Large upfront cost to invest in new equipment
- Logistics of transporting equipment between job sites
The company had previously purchased all of their welding equipment outright. As an equipment owner, LB Construction was responsible for ongoing maintenance, which took time, money and labor resources away from their core objective of crafting buildings and other structures for their clients.
"Prior to moving to the [Red-D-Arc] lease program, we owned all of our equipment – shop and field. We were at this point where it was either invest the dollars to buy all new equipment or go another route."
- Vance Lancaster
Co-Founder, LB Construction, Inc.
The Solution
Red-D-Arc Logistics Lease Program
A reliable, cost-effective and customized welding equipment plan
To address the company's challenges with maintaining their fleet of welding equipment, the team at Red-D-Arc offered an enticing lease contract that was strategically tailored and aligned with LB Construction’s business goals.
The Red-D-Arc Logistics Lease program is an excellent choice for customers like LB Construction who want financial flexibility without the responsibility of managing multiple depreciating assets.
With leasing, companies can save capital for more critical operational expenses and scale their equipment needs up or down to meet evolving project demands and requirements.
Additional benefits of leasing include:
- Large fleet of advanced welding equipment from leading manufacturer
- Access to a global network of technical experts including:
- 90+ welding and automation specialists
- Airgas and Air Liquide specialists trained in several areas such as gases, safety, supply chain management, and more
Financial Flexibility
The Red-D-Arc Logistics Lease program eliminated the need for a large upfront investment, allowing the company to better allocate resources and manage cash flow with smaller payments spread out over time.
Lower Total Cost of Ownership
By avoiding the large upfront investment and the ongoing cost of maintenance, downtime, storage and transportation fees, LB Construction experienced a better return on investment and reduced their financial risk, enabling the company to adapt more easily to changing business conditions.
Reduced Downtime
With the Red-D-Arc Logistics Lease program, equipment stays under full factory warranty with no charge for replacement. This gave LB Construction the opportunity to focus more on its core construction competencies without the worry of their equipment breaking, needing to schedule and spend money on repairs, and losing valuable production hours.
Unrivaled Support and Expertise
Working closely with dedicated Red-D-Arc equipment specialists, LB Construction benefited from expert recommendations with equipment packages designed to improve efficiency and productivity. It also helped them keep better track of welding supplies and consumables usage.
"Taking all the variables out of the equipment side of your business, the concerns, and just being able to run consistently without having that worry. It’s a game changer."
- Vance Lancaster
The Result
Motivated by the perks offered by the Logistics Lease program, LB Construction signed a three-year lease agreement to stock their fabrication shop and service trucks with welding rigs from Red-D-Arc. The leasing program not only allowed the company to save their financial resources by spreading the purchase over the lease term, but also:
- Removed burden of repairing and maintaining equipment
- Provided access to newer, more efficient welding technologies
- Eliminated hassle of transporting and selling old equipment
"We rely on the expertise that we get from the Red-D-Arc team. We have a Red-D-Arc representative probably in our shop at least once a month, looking at what we do and what our shop needs are."
- Vance Lancaster
Better Equipment Management Drives Long-Term Growth
12 years and several lease agreements later, LB Construction is still going strong with Red-D-Arc. Today, the company is considered an industry leader with 370 employees and a diverse portfolio of projects throughout California, Oregon and Nevada.
By going with Red-D-Arc’s Logistics Lease program, LB Construction achieved the flexibility, efficiency and support expertise needed to greatly enhance production capacity and quality for their clients.
"When you know that you’ve got a team of people that are going to step right in and make sure that you’ve got what you need almost immediately … that’s huge. It makes you sleep better at night.”
- Vance Lancaster
