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Question:

many smaller excavators used to dig foundations for houses have hydraulic systems that perform the digging ?

and lifting motions of the shovel why do you think the giant machines are designed with pulleys for these functions instead of hydraulics

Answer:

hydraulic rams are limited to the distance they can travel.. large cranes you see with cables are moving objects hundreds of feet where a hydraulic ram can not. hydraulic systems are much more dependable and can create a great deal of force in a small set up this is why you see them on most of your smaller construction machines.

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