Weathering Auction Market Fluctuations: How to Anticipate Changes in Heavy Equipment Values
In a recent EquipmentWorld article by Jordanne Waldschmidt, it was reported that auction prices for used units are trending downward, as more construction equipment and truck inventory are now available on dealer lots.[1] With uncertainties looming, it’s crucial to stay ahead of the curve and anticipate changes to maximize returns and minimize risks.
Trends Impacting Auction Prices
“Pandemic-related shortages drove late-model prices up in 2021 and 2022, but the market is rebalancing as factories have since ramped up production,” stated Waldschmidt. In fact, over the last three years, fluctuations in construction activity, economic conditions, and supply chain disruptions have led to increased volatility in auction prices. Machinery Pete recently reported on the “highest auction price for a mini excavator was in Georgia in April. A 2021 model E50R2 with 181 hours sold for $63,000.”[2] During periods of heightened construction activity, demand for heavy equipment surges, driving auction prices upwards. Conversely, economic downturns or regulatory changes can lead to decreased demand and lower auction prices.
Additionally, global trends, such as geopolitical tensions or shifts in commodity prices, can also influence auction prices for heavy equipment. Fluctuations in fuel prices, for example, can affect operational costs for equipment owners, impacting their willingness to buy or sell equipment at auction.
Anticipating Changes in Equipment Value
To effectively anticipate changes in equipment value, equipment managers need access to comprehensive data and industry insights. This past year, in an effort to continue to stay on top of the changes in used equipment trends, EquipmentWatch acquired TopBid. With the integration of TopBid into EquipmentWatch, subscribers now have access to an extensive database of auction results and enriched market activity, providing invaluable information for predicting market trends and making informed decisions.
By adding in TopBid’s auction and serial number data, EquipmentWatch users now have access to increased data sets including: 990,000 auction results to 654 OEMs. In addition, the new data sets represent increased serial number percentages for some of the largest OEMs on the market including:
- Bobcat – 46.23%
- Hitachi – 65.37%
- JCB – 84.55%
- Kubota – 261.50%
- Kobelco – 44.80%
- SkyJack – 165.09%
- Volvo – 54.41%
By gaining unparalleled insights into market trends and opportunities, equipment managers can maximize returns and minimize risks in today’s dynamic heavy equipment market. Equip yourself with EquipmentWatch’s industry-leading tools and resources to weather market fluctuations and stay ahead of the competition.
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.