Key Takeaways for
FINANCE: Region I’s diversification in growth sectors will help insulate used equipment markets in this region from any possible setbacks. Given the high growth in average asking price and the strong market share by a large number of brands, the outlook for this region is very positive.
Moving west from our last Regional Snapshot, we reach Region I, the West Coast. These 4 states, starting with Nevada and stretching northward and westward to the Pacific Coast, boast an incredibly strong economy with high population and infrastructure growth potential. This month, we’ll be examining Region I in this next installment of our recurring Regional Snapshot.
Since April 2017, EquipmentWatch has collected approximately 277,624observations from the resale channel for the states in Region I (listed at the bottom of this article). Over the last 13 months, 2 of the top six equipment types in this region are lift/access equipment, while the most popular piece of equipment are agricultural wheel tractors. This region is the most diverse equipment market we have seen yet in this series, as the top 6 equipment types only comprise 27.6% of the entire market. Wheel tractors have the largest market share among equipment in this region, coming in at 6.5% of the entire data set. Close behind are earth-moving equipment like excavators (5.8%), wheel loaders (5.4%), and backhoes (3.5%). Scissor lifts and telehandlers also comprised a sizeable portion of the resale channel’s market activity.
Caterpillar was the leading manufacturer in this region among our top 6 equipment types, especially among the earthmoving equipment with 50% or greater market share. Caterpillar telehandlers also narrowly edged out Sky Trak for the most popular brand in that equipment type, with 22% to Sky Trak’s 21%. Deere took the majority in wheel tractors in this region, accounting for 60% of the market. Scissor lifts had a much more competitive market as Genie, JLG, and Skyjack brands each took about a fourth of the scissor lift market.
Over the past 13 months, average asking prices for the top equipment types have risen substantially. With the exception of 4-Wd articulated wheel loaders and backhoes, asking prices have increased between 5% and 11% since April 2016. Although wheel loaders dropped by about 4% from April 2016 to April 2017, this appears to be a seasonal swing, given that asking prices tend to decline in early summer months and peak again in the winter.
Region I is a huge center for economic growth in the United States, containing the largest state economy in the country (California) alongside 3 other states with significant growth potential. With continued regional investment in infrastructure, the resale market for construction and agricultural equipment should continue to flourish in Region I.
Region I: California, Nevada, Oregon, Washington