Construction Equipment Market Trends: What it takes to navigate values in a tight market
In the ever-evolving landscape of the construction industry, equipment managers face the challenge of navigating through fluctuating trends and market conditions. From oversupply and softer demand for equipment to volatility in material prices and increasing labor costs, several factors impact the used equipment resale and auction prices. However, with the right tools and insights, equipment managers can anticipate changes in equipment value and make informed decisions to stay ahead of the curve.
Trends Impacting Used Equipment Resale and Auction Prices
Recent research and industry reports shed light on the trends shaping the construction equipment market and its impact on resale and auction prices. “In addition to grappling with ongoing inflation, the industry is facing volatility in material prices and increasing labor costs,” stated a recent report on the 2024 construction industry by Deloitte. “Another significant challenge is the ongoing shortage of skilled labor, which continues to impact the sector. Moreover, high interest rates and tighter lending standards are also impacting construction activity.”1
With construction activity experiencing fluctuations due to economic uncertainties, equipment managers must carefully assess market conditions to determine the optimal time to buy or sell used equipment.
Moreover, volatility in material prices and increasing labor costs further contribute to the challenges faced by equipment managers. Fluctuations in material costs, such as steel and fuel prices, directly affect the operating expenses of construction companies, influencing their willingness to invest in new equipment or upgrade existing fleets. Additionally, rising labor costs put additional strain on construction budgets, prompting companies to explore alternative solutions, such as equipment rental or leasing, rather than outright purchases.
New Tools for a New Generation
All of these concerns put pressure on your bottom line. Keeping track of ownership and operating costs, and getting adequate reimbursement for job costs, become more important than ever. With EquipmentWatch, subscribers gain access to comprehensive equipment data and industry-leading analytics tools, empowering them to make informed decisions and stay ahead of market trends.
Many industry insiders are looking to technology to solve the complexity of job site profitability. In fact, “the use of effective cost management software and collaborative KPI dashboards will become more and more of a high priority for contractors as they look to efficiently manage project financials, resources, and schedules in the face of demanding projects and intense labor market pressures,” says Heather Sonderquist, VP of Construction Innovation for Jacobsen Construction.2
By leveraging EquipmentWatch’s extensive database of equipment valuations and historical auction data, equipment managers can identify patterns and trends in equipment values, enabling them to anticipate fluctuations and adjust their strategies accordingly. Additionally, EquipmentWatch’s predictive analytics capabilities provide subscribers with valuable insights into future market trends, allowing them to make proactive decisions to optimize their equipment fleets and maximize returns on investment.
Equip yourself with EquipmentWatch’s industry-leading solutions and stay ahead of the curve in the competitive construction equipment market. With reliable data and powerful insights, you can effectively anticipate changes in equipment value and position your business for success in today’s dynamic construction industry.
At EquipmentWatch, we analyze equipment values on a regular basis with our monthly Market Reports. More in-depth reports such as The State of the Construction Equipment Economy aim to arm you with the insights you need to make quality, informed decisions about how to manage your heavy equipment. EquipmentWatch can help you with the data you need now to set accurate rates, value your fleet, make disposition decisions, and understand when to rent equipment. We are also ready to be your principal data provider for any AI-focused projects you take on in the future. For more information on the data solutions offered by EquipmentWatch call us at (888) 307-1713.