Brochure

What Tier 4 means to Turf Equipment Manufacturers
Compliance with Federal Regulations, like EPA Tier 4, is not
optional. The EPA Tier 4 emission reductions were first mandated
in industries with large on-road vehicles (such as semi trailers
and other diesel-powered trucks) and followed shortly thereafter
in industries with large off-road diesel equipment (such as
agricultural and construction equipment). In each case, the cost
to manufacture Tier 4 compliant models went up substantially
due to the significant scope of the changes needed to implement
compliant engine and exhaust after-treatment technology.
The Toro Company has been
working with its engine suppliers
over the past decade to proactively
and transparently comply with each
progressive Tier of the emission regulations.
The incorporation of Tier 4 compliant diesel engines into
today’s Turf equipment solutions (25-74 hp), will require
significant equipment redesign. Tier 4 compliant diesel
engine/exhaust system solutions: 1) require more sophisticated
electronics to monitor and control emissions, 2) are physically
larger in size, and 3) have new and more expensive components
- particularly in the exhaust after-treatment area.
 •Go“Green”
Some end-user companies embraced the new Tier 4 product
and wanted to position themselves as leaders in the “green”
space. They got in line for the new products early, despite
the higher prices, to lead the charge toward cleaner air.
 •BusinessasUsual
Other companies chose to simply pay the market price
(even if it was forecasted to go up substantially) when their
current capital plan called for new equipment or when
their equipment simply reached the end of its useful life.
 •BuyUsed
Equipment manufactured prior to 2013 is “grandfathered-in”
and does not need to be retrofitted to Tier 4 standards.
 •Pre-Buy
Many companies decided to buy equipment in advance
of the mandatory Tier 4 changeover (at lower prices)
to defer the need for higher priced products as long as
possible and to give them more time to adjust to the
new market pricing.
The EPA Tier 4 standard and the
impact on the Turf Industry:
The Environmental Protection Agency’s Tier 4 diesel engine
emission reduction mandate will soon have an impact on your
business. Tier 4 compliant Turf Equipment, in the 25 to 74
horsepower (hp) category, manufactured after January 2013
will be better for the environment and healthier for everyone,
but it will also cost more.
Understanding the nancial implications of various compliance
options - today - will allow you to evaluate all of your options,
in advance, so you can make the most beneficial decision for
your business.
TheEPATier4Standardisaboutcleanerair!
All US regulated emission standards, including
Tier 4 for off-road diesel engines, are extensions
of the “Clean Air Act” (1963) which was enacted
to reduce air pollution in the United States.
The “tiered” mandates were put in place to
progressively reduce the level of harmful emissions
such as Particulate Matter (PM) and Nitrogen
Oxides (NOx) that enter the air via diesel engine
exhaust. The most stringent emission reduction
mandate to date, is called “Tier 4”. The Tier 4
emission standard will reduce emissions of PM by
90% from current levels.
Non-road 25-74 hp
diesel emissions
Compliant models may require retooled engine compartments,
modifications to chassis frames and re-engineered cooling
systems. Over a third of the parts for a given model will likely
need to be reworked, replaced or otherwise re-engineered in
order to integrate Tier 4 compliant engines and exhaust systems
into the products! As such, existing models are not “retrofit”
capable. Toro, alone, produces over twenty diesel powered
models in the 25 to 74 hp range that will need to be
addressed – beginning in 2013.
The obvious message is that the design,
manufacturing and component costs – to
deliver Tier 4 compliant diesel powered
product will increase significantly, beginning with
machines manufactured in 2013. Cost reductions, while always
a high priority in product redesigns, will not be sufficient to
offset cost increases.
As the cost of diesel powered products increase, the viability
of other solutions need to be evaluated. Toro continues to
invest in the evaluation and, where appropriate, development
of alternative fuel options like non-diesel engines and compliant
diesel engines.
There are many complex trade-offs and pro/con arguments
for each option, but the alternatives speak to the challenge
manufacturers are facing to deliver comparable solutions
at a commercially viable price point.
BePreparedfortheTier4Mandate
Educating customers early, regarding the financial impact of
Tier 4, provides sufficient time to evaluate multiple options.
The additional time will allow you to thoughtfully consider
the most meaningful approach for your business as it relates to
environmentally and financially prudent (i.e. Tier 4 compliant)
turf equipment purchases.
End users in other industries that have already lived through
the transition to Tier 4 have taken a few different strategic
approaches when developing their capital spending plans
around Tier 4 compliance:
Tier 4 compliant systems require more sophisticated
engine electronics and exhaust after-treatment systems.