Regional Snapshot: The Midwestern States
Key Takeaways for Decision Makers
FINANCE: The remarkable stability of the resale markets in Region D are a strong sign of continued growth in the construction equipment industry across the United States.
Moving north from our last Regional Snapshot, we reach Region D, the Midwestern States. These 5 states, starting with Ohio in the east and stretching west to Wisconsin, have a strong resale market for heavy equipment. This month, we’ll be examining Region D in this next installment of our recurring Regional Snapshot.
Since March 2016, EquipmentWatch has collected approximately 769,653 observations from the resale channel for the states in Region D (listed at the bottom of this article). Over the last 13 months, three of the top six equipment types in this region are agricultural equipment, with the number of wheel tractors available for sale more than doubling the number of the next most common equipment type.
Wheel tractors comprise the largest individual equipment type for this region, with over 19% of the entire data set. The remaining five top equipment types average less than 10% of the resale market each. In fact, the top six equipment types cover approximately 46% of the region’s activity, a fairly average concentration when compared to our analysis of other regions in this series. Skid steer loaders, hydraulic excavators, and articulated wheel loaders combined carry just under 14% of the entire resale channel, a much lower density than what we would see on a national level.[su_spacer size=”20″] [su_box title=”” box_color=”#ffffff” title_color=”#000000″ style=”height: 100%;” ] [/su_box]
Deere equipment dominated the agricultural equipment available on the resale channel for the five states in Region D—for wheel tractors, combines, and corn headers the Deere brand represented over 65% of the resale channel over the last 13 months. Caterpillar led the resale market for hydraulic excavators and articulated wheel loaders, but the market for skid steer loaders was incredibly close. Deere, New Holland, and Bobcat all held between 19% and 22% of the resale market for skid steer loaders.[su_spacer size=”20″] [su_box title=”” box_color=”#ffffff” title_color=”#000000″ style=”height: 100%;” ] [/su_box]
Average asking prices on the resale channel in Region D were largely free of the any unexpected fluctuations. Combines prices rose and fell with seasonal expectations through the summer and fall of 2016. Excavators and articulated wheel loader prices slid throughout the last 13 months, while wheel tractors remained relatively stable from May to December 2016 until experiencing some pricing turbulence in the first quarter of 2017. Corn headers exhibited a bit of inflation in asking prices in 2017, bringing average asking prices close to their starting point in March 2016.[su_spacer size=”20″] [su_box title=”” box_color=”#ffffff” title_color=”#000000″ style=”height: 100%;” ] [/su_box]
Region D, a hub of both agriculture and manufacturing for the United States, is still a vibrant market for the resale of heavy construction and agricultural equipment. It has exhibited remarkable stability over the last 13 months, and we expect this stability to persist throughout the rest of the year.
Region D: Ohio, Indiana, Illinois, Michigan, and Wisconsin[su_spacer size=”30″] [su_note note_color=”#EEE” text_color=”#555″]Interested in learning more about our products? Visit EquipmentWatch.com. [/su_note]