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What Heavy Equipment Contractors Know About Heating Costs That Most Businesses Don't

Tuesday, June 30, 2026

Every piece of heavy equipment in your fleet needs maintenance.

Excavators, dozers, wheel loaders, skid steers, dump trucks, and service trucks all require regular oil changes to stay productive. The larger the fleet, the more used oil your operation generates throughout the year. For many construction companies, that means hundreds or even thousands of gallons of used oil sitting in storage tanks.

At the same time, contractors are facing another challenge: rising heating costs.

Large maintenance shops are expensive to heat. High ceilings, oversized bay doors, and constant equipment traffic make winter heating one of the biggest seasonal operating expenses for many construction companies. While utility bills continue to fluctuate, more heavy equipment operators are discovering they already have a fuel source sitting on-site.

That fuel source is used oil.

Your Fleet Already Produces Heating Fuel

Construction companies generate used oil every day through normal maintenance operations.

Most businesses view that oil as a waste product that needs to be stored and eventually hauled away. However, used oil still contains significant energy value. When burned in an EPA-approved waste oil heater, that same oil can provide reliable heat for maintenance facilities, fabrication shops, and equipment storage buildings.

Instead of paying for traditional heating fuel while storing used oil separately, contractors can use both resources more efficiently.

That approach has become increasingly attractive as energy costs continue to rise. Natural gas, propane, and fuel oil prices can change dramatically from season to season, making it difficult to accurately forecast winter operating expenses. Waste oil heat provides a level of independence from those market swings.

The Real Cost of Heating a Construction Shop

Most contractors focus heavily on fuel costs for equipment, but shop heating expenses often get overlooked.

A large maintenance facility may require thousands of dollars in heating costs every winter. Those costs are necessary because equipment still needs repairs, fabrication work still needs to happen, and technicians need a comfortable environment to stay productive.

Cold shops create problems. Productivity slows down. Repairs take longer. Employee comfort suffers. Nobody wants to spend a Wisconsin winter working on a loader while wearing three layers of clothing and gloves.

For many contractors, heating is simply viewed as a cost of doing business.

It doesn't have to be.

A Real-World Example From Wisconsin

Fanning Excavating, a utility construction company based in Janesville, Wisconsin, faced the same challenge many contractors face today. The company was generating plenty of used oil through its operations while also paying significant heating costs every winter.

To solve both problems, Fanning installed a Lanair XT300 waste oil heater in its 5,000-square-foot maintenance and fabrication shop. The company burns approximately 1,500 gallons of used oil each season, fuel that is generated through normal maintenance activities.

The results were immediate.

Before installing the Lanair heater, Fanning estimated its heating costs averaged approximately $2,000 per month during the winter season. Over the course of a heating season, those expenses added up to roughly $8,000. After installing the waste oil heater, those heating bills dropped to zero.

Think about that for a minute.

The company didn't find a cheaper fuel supplier. They didn't reduce the size of the building. They simply started using a resource they were already producing. Case Study

Better Heat Creates Better Working Conditions

The savings were impressive, but they weren't the only benefit.

Fanning now maintains a comfortable 70-degree temperature throughout the winter inside its maintenance facility. According to the case study, the forced-air system they previously relied on struggled to maintain those conditions.

Anyone who works around heavy equipment understands why that matters.

Technicians spend hours performing maintenance, troubleshooting hydraulic systems, welding components, and fabricating parts. A comfortable shop environment helps improve productivity and makes the facility a better place to work during long winter months.

When experienced technicians are difficult to find and retain, workplace conditions become even more important.

Stop Paying Twice

Many heavy equipment operators are paying for the same problem twice.

First, they pay utility companies for heat. Then they pay to manage or dispose of the used oil generated from fleet maintenance. While those expenses are usually tracked separately, they're connected.

A waste oil heater changes that equation.

Instead of treating used oil as a waste product, it becomes part of the heating solution. Contractors can reduce heating expenses while getting more value from a material they already generate.

That's why waste oil heat continues to gain popularity among excavating contractors, utility contractors, trucking companies, municipalities, and equipment fleets across the country.

More Control in an Unpredictable Market

Construction companies deal with enough variables already.

Material costs change. Fuel prices fluctuate. Equipment costs rise. Labor remains difficult to predict. The last thing most contractors want is another major expense controlled by outside markets.

Waste oil heat gives contractors more control.

As long as equipment maintenance continues, used oil continues to be generated. That means part of the facility's heating fuel supply comes directly from the operation itself rather than from a utility company.

For many contractors, that stability is just as valuable as the savings.

Turn Maintenance Into an Asset

Every excavator, dozer, loader, skid steer, and service truck in your fleet generates used oil.

The question is simple: What are you doing with it?

Companies like Fanning Excavating have shown that used oil can become more than a maintenance byproduct. By installing a Lanair XT300 waste oil heater, they transformed approximately 1,500 gallons of used oil per year into free shop heat, maintained a comfortable 70-degree workspace, and eliminated roughly $8,000 in seasonal heating costs.

You already have the equipment.

You already generate the oil.

You already need the heat.

A Lanair waste oil heater helps put all three to work.

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