Despite a year of economic doom due to the global COVID-19 pandemic there is some good news on the economic horizon in the form of used machinery and its ever increasing demand on the world’s marketplace. According to a new heavy machinery and equipment report, year-over-year (YOY) improvements in auction and asking values continue to be the trend for used equipment like milling machines, commercial trucks, used injection molding machines, machine tools, used construction equipment, agricultural equipment, and lots more.
Says the report from the auction professionals at Sandhills Equipment Value Index (EVI), farm equipment realized the smallest used equipment value increases, while on other hand, heavy-duty trucks showed the biggest increase. Buyers and sellers interested in used equipment for their businesses can use the information provided by firms like Sandhills to monitor many used machinery and equipment markets to “maximize returns on acquisition, liquidation, and related business decisions.”
That said, here’s some useful information regarding the used equipment and machinery auction market.
Sandhills Report Takeaways
Every Sandhills report is said to explore the biggest and most standout changes that occur in the ever evolving heavy-duty truck, equipment, and machinery industries. The reports are accompanied by detailed charts and analysis that allow buyers and sellers to better visualize the markets on a YOY basis.
Previously Owned Heavy-Duty Trucks
Sleeper trucks values have increased in 2021 despite the ongoing pandemic. Auction values for heavy-duty sleepers realized a 10 percent increase in May compared to April, going up a whopping 56.9-percent YOY, while the asking prices rose 8-percent to 19.6 percent YOY.
Used Heavy-Duty Construction Equipment in the U.S. Market
Sandhills reports that used heavy-duty construction equipment sales increased 2 percent in auction values which is up 18.5-percent YOY, as asking values went up 11.5-percentage points.
Small value increases were also realized in the crawler dozer sector. In fact, dozer values were up 11.7-percent YOY in May when compared to 10.9-percent in April, while asking values for the earth moving machines topped off at 7.7-percent YOY as compared to 5.5-percent in April.
Used Agriculture Equipment in the U.S. Market
The Sandhills EVI for previously owned heavy-duty farm equipment realized a 13.1-percent YOY uptick at the auction market in May, up just a tad from the 13-percent posted in April. Asking values also rose to 8.3-percent YOY in May, which was a slight improvement over April’s 7.5-percent YOY increase. These increases can be seasonal in nature, but they do prove that business owners are buying and selling in 2021, especially when it comes to used equipment.
Taking a look at the 300-plus-horsepwoer tractor sector, the Sandhills Auction EVI recorded a 10.4-percent rise in May, while asking values came in at 4.35-percent YOY. This represents an overall 1-percent improvement in sales in one month’s time. It also means that if you’re in the market for this kind of equipment, good pickings are to be had.
Unprecedented Global Demand for Used Machinery and Equipment
Says KHL.com in a recent report, auctioneers in the time of pandemic are organizing online with timed auctions. UK Sales Director, Rupert Craven, claims that the past 12 months have seen “unprecedented demand for used equipment.”
“What we are seeing at the moment is the true impact of the pandemic on new (and used) equipment supply and the ‘perfect storm’ scenario, as lead times have jumped rapidly throughout the globe.” Craven attributes the demand due to factory closers during the pandemic along with workers isolating and component/tool shortages impacting overall production. The demand isn’t just relegated to the construction or agricultural sectors, but all sectors where machinery is utilized, including quarrying, waste, metal fabrication, plastics manufacturing, and many other busy sectors.
He goes on to say, “When you translate this to the wider European market, we have seen a strong appetite for used machinery from buyers in particular, with registrations increasing by 19-percent compared to the last year.”
Craven further demonstrates his thesis by pointing out that a recent online auction in Moerdijk in the Netherlands, had close to 2,600 participants from more than 92 counties, which resulted in the highest number of bidders in more than five years.
The Final Analysis
As more and more business owners are being vaccinated and more countries opening up for business, the beginning of the end of the COVID-19 global pandemic just might be clearly in sight. What this translates into is an ever growing demand for used machinery of all varieties for use in all sectors, both big and small.