JLG Holds Top Brand Premium Among Electric Scissor Lift Brands

Brand Premiums and average age vary significantly by brand. There have been significant trends which show what brands are winning and losing in the telehandler market.
Among the eight brands of electric scissor lifts, JLG has the highest overall brand premium based on the past 13 months of data, while Custom Equipment (Hy-Brid Lifts) has the lowest overall brand premium.

 

Key Takeaways for Decision Makers

RENTER/SELLER: If looking to secure the highest premium on the resale market, considering going with JLG. Owners of Snorkel equipment should note that the next few months could be the best time to sell equipment, since values have garnered high premiums recently. For Rental houses looking to re-fleet, Skyjack equipment, such as the SJIII 3219 and SJIII 4632, tend to last the longest among the big three brands (Genie, JLG, and Skyjack) and reach resale channels at an older age than any of the other electric scissor lift brands.

FINANCE: Lean towards financing the equipment which lasts as long as possible and has a high premium. The big three brands might be the best bet to maximize value.

How important is a brand name in the electric scissor lift market? Thousands of dollars in advertising, marketing, and brand awareness are spent each year by major OEMs in this space, and they’re mostly geared towards the sale of new equipment. On the secondary market, the impact of the manufacturer on the average resale price can be harder to determine. At EquipmentWatch, we have developed a metric, known as the brand premium, to better understand this topic.

In this article, our brand premiums are based off the past 13 months of average asking prices in the resale market for every electric scissor lift within each brand. We average all of the average asking prices for all eight brands and use that as the baseline. We are then able to isolate the impact of brand by holding constant all other major factors, like region and age, on almost 200,000 observations of electric scissor lift data to create these graphs. The brand premium is the percentage variance from the overall average asking price of the eight brands. We chose these eight brands because they had almost 100% of the market share among electric scissor lifts. Brand premiums are important to understand because they provide insight as to which brands have the highest value.

As can be seen from the graph, there are some interesting takeaways. Custom Equipment (Hy-Brid Lifts) has the lowest average brand premium among the eight brands, staying around 15-20% less than the average electric scissor lift. JLG, with popular models like the 1930ES and 2630ES, has the highest average premium among the eight brands, averaging around 8% higher than the market average. The biggest movers in recent months have been Snorkel and Haulotte. Snorkel brand premiums have risen from around -20% in October to about -7% in July, 2016. Haulotte has gone from about -9% in March down to -16% in July, 2016. The largest brand fluctuation was present in Up-Right, which actually was bought by Snorkel in 2007. Brand premiums for Up-Right have gone up and down on two separate occasions over the past 13 months. We can also see on the graph that Genie, who produces the well-known GS-1930 and GS-2632, has remained steady over the past 13 months, staying right at the average brand premium. We can speculate as to why these rises and falls are occurring and as to why some brands are lower and higher than others, but we know that brand premiums correspond with the level of market activity. Haulotte and Up-right brand premiums dropped over the past three months due to high increases in volume relating to increasing demand in the spring and summer months when construction is at its peak. Snorkel average prices have risen by about 22% since October; this explains their large increase in brand premium since then.

The brand with the highest overall average age is Sky Trak and the brand with the lowest overall average age is Genie.

Average age is important to understand because it details which brands are staying on the market the longest. The average age on the resale channel shows a wide range across the eight electric scissor lift brands with Custom Equipment (Hy-Brid Lifts) having the lowest average age of around seven and a half years. Up-Right has by far the highest average age of about thirteen and a half years. This obviously has to do with the fact that Up-Right was bought by Snorkel back in 2007 and ceased operation of that brand name in 2010. The average age of equipment available on the resale market typically corresponds with the economic life of the asset. There were some large fluctuations in age for three brands (Up-Right, Mayville Engineering Co., and Haulotte). Mayville Engineering Co. had the largest variance, ranging from about 8.5 to 12.4 years from July, 2015 to February, 2016. This could be due to the fact that average meter reads have also increased by almost 120% over this same time period, which goes in hand-in-hand with the age increase. Based on the most recent months, most electric scissor lifts seem to average around nine or ten years old.

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