A Strong Start, Meeting Aftermarket Demands

March 2020

A Message from Schramm Management: A Strong Start, Meeting Aftermarket demands

As the first quarter of the year draws to a close, Schramm is pleased to report a successful beginning to 2020 and high expectations for the coming months. As the mining industry continues its steady resurgence, we have kept our ears open to customer feedback. At this early stage, the consensus is clear: demand for new rigs will grow as the market recovers and aging fleets must be replaced and updated. For now, rig owners around the world are prioritizing rig longevity, and Schramm has heeded that call.

In fact, our top goal for 2020 is to expand and improve on our service footprint and many aftermarket offerings. We want to have the right part, in the right place, at the right price for our customers. While this ramp up has been a challenge for all of us, we believe customers are already seeing an improvement with the initiatives we’ve introduced.

To date, we have made huge efforts to ensure local support teams can service most areas around the world quickly and efficiently. However, for owners based in the Australian Pilbara, Andean mountaintops and other isolated corners of the globe, rig upkeep often remains time consuming and prohibitively expensive.

This year, to better serve the upkeep needs of our most remote clients, we are expanding our capability to deliver parts just‐in‐time. Just‐in‐time delivery helps reduce end expenses to customers by minimizing rig downtimes and reducing transportation and storage costs. And, to truly squeeze the most benefit from just‐in‐time delivery, we continue to actively monitor and adjust our pricing structures to ensure customers enjoy the most affordable upkeep available.

Later this year, expect to see additional new offerings to maximize machine lifespan, such as custom‐tailored total upkeep packages. By bundling parts and services, we can offer end‐to‐end solutions at a more competitive price than the same products bought separately – savings we pass along to our customers. For even more added value, these bundles come fully integrated with our relaunched Rig>ID™ platform, providing owners with parts books, user manuals and other key information, along with predictive maintenance monitoring, recertification reminders and 24/7 access to Schramm’s technicians, trained in‐house. In combination with our other services, Rig>ID™ offers owners a revolutionary tool to keep their rigs running. We continue to proactively reach out to clients to ensure each and every client knows what Rig>ID™ is and how to use it. For owners of our competitors’ rigs, have no fear. You too can take advantage of Schramm’s premier maintenance and upkeep offerings.

Though our focus is on aftermarket services, we also expect to fulfil a number of orders for new rigs this year. Already we have closed a number of sales globally across our entire portfolio, including for the new Fury130s, the perennially popular T450s and T685s and a large Telemast rig. Several pending deals in the pipeline are expected to close in the coming weeks. We’ll keep you abreast of the latest developments.

To all of our customers, thank you for your continued business and faith in Schramm. We look forward to another excellent year of serving you.