#United States #Lincoln #Sandhills Global #Used Equipment #Inventory Trends

Sandhills Global Reports: Declining Used Inventory Across Industries

In an increasingly fluctuating marketplace, the recent reports from Sandhills Global reveal a marked decrease in the availability of used equipment and vehicles across various sectors such as farming, construction, trucking, and more. As demand shifts and economic conditions evolve, the inventory levels appear to be reflecting broader market dynamics that warrant attention.

Current Inventory Trends

According to the latest data, all categories of used equipment—ranging from tractors to trucks—are experiencing a downturn in inventory levels. Notably, popular platforms like TractorHouse, Machinery Trader, and Truck Paper are seeing reduced supplies, suggesting that sellers may find fewer options available for potential buyers.

In January alone, the inventory of used equipment in the U.S. decreased by approximately 3.9% compared to the previous month and an alarming 22.87% year-over-year (YOY). The sharpest declines were observed in the category of tractors with less than 40 horsepower, hitting a staggering 26.31% drop on an annual basis.

EVI Spread Analysis

The Sandhills Equipment Value Index (EVI), an essential metric in assessing market value, has also shown notable changes. This index measures the percentage difference between asking prices and auction values, which is crucial for buyers and sellers alike. As of January 2025, the EVI spread fell to 38%, slightly below the peak recorded in 2015 and down from 40% in December of the previous year. Furthermore, the EVI spread for used combines rose slightly to 48%, indicating a potential increase in demand for certain categories.

Market-Specific Insights

Used Tractors

Inventory levels for used tractors 100 horsepower and greater decreased by 1.99% from the previous month but rose by 10.84% compared to last year. Trends indicate that inventory levels for high-horsepower tractors (300 hp or greater) are slightly recovering, with a YOY increase of 20.49%. Auction values for these tractors, however, remain down 8.51% YOY.

Used Heavy-Duty Construction Equipment

This market segment, which covers items such as crawler excavators and wheel loaders, declined by 2.88% in January and is down 11.57% YTD. The asking prices have likewise been trending downward, witnessing a 6.35% YOY decrease.

Medium-Duty Trucks

For the medium-duty truck category, which includes essential vehicles like box trucks, there was a decrease of 1.39% in inventory compared to last month. This reflects a mixed market environment where inventory remains higher than the previous year, yet values continue to drop, with asking prices down 5.09% YOY.

Auction and Asking Prices

Generally, auction values across used equipment categories, such as wheel loaders and skid steers, are experiencing downward pressure. Despite some month-over-month increases, the overall trend indicates a sustained decrease in asking prices across most categories over the past year.

The most alarming trend is found in the used semitrailer inventory, which has been on a downward trajectory for several months, with a decline of 11.11% M/M and 14.49% YOY. This ongoing contraction is concerning for stakeholders across relevant industries.

Conclusion

The Sandhills market reports paint a concerning picture of the used equipment landscape, reflecting broader economic trends and supply chain challenges. Stakeholders are urged to closely monitor these developments to make informed decisions in the face of fluctuating values and inventory levels. Sandhills Global continues to provide essential market insights that help industry players navigate this complex environment effectively.