#United States #Lincoln #Sandhills Global #Heavy-Duty Equipment #Medium-Duty Equipment

Analyzing the Used Construction Equipment Market

The latest reports from Sandhills Global highlight an intriguing market dynamic in the used construction equipment sector. As we delve deeper into these findings, a clear pattern emerges: while the values for heavy-duty construction equipment are on the decline, the medium-duty segment is witnessing an upward trend.

Heavy-Duty Construction Equipment

For the heavy-duty construction equipment market, June data indicates a decrease in asking prices, falling by approximately 0.69% month-over-month (M/M) and 3.46% year-over-year (YOY). Additionally, auction values are experiencing minimal shifts, decreasing only slightly by 0.63% M/M but showing a moderate increase of 0.1% YOY. Notably, the largest decline in asking prices is seen in used wheel loaders, which posted a significant 5.59% decrease YOY.

Inventory levels in this heavy-duty category remained relatively stable, with a minor month-over-month increase of 0.95%. Year-over-year, however, we see a more concerning trend, with inventory down 4.57%. The used crawler excavator market has also been significant, as it reflects the largest YOY inventory decrease, standing at 7.32%.

The auction values in this sector are trending sideways, with a decline of 0.99% noted for the used crawler excavator category. With these trends, it's critical for buyers and sellers to remain vigilant and adjust their strategies accordingly.

Medium-Duty Equipment

In contrast, the medium-duty construction equipment market demonstrates a resilience and growth not currently found in the heavy-duty segment. June statistics reveal an increase of 1.06% in asking values M/M, despite a marginal 0.96% reduction YOY, showcasing an overall upward trajectory.

The inventory levels reflect a similar trend, with a 1.78% increase M/M, even though there’s a more significant 5.74% YOY decline. Among the medium-duty machines, the used track skid steer category reported the largest M/M inventory increase at 2.63%, while the mini excavators showed a sharp YOY decrease of 16.88%.

Auction values are on the rise as well, having increased by 0.54% M/M and 1.86% YOY, indicating strong buyer interest and possibly lower supply.

Market Insights and Inventory Trends

Across various segments, inventory levels tell a complex story. For instance, in the U.S. lift market, inventory has risen consistently over the past five months, increasing by 4.48% M/M. This trend highlights a growing demand, particularly in the telehandler category, which saw an 8.31% rise M/M. However, there remains a long-term concern of declining YOY figures, with a decrease of 13.92% noted.

The tractor market offers a different perspective, particularly for those over 100 horsepower. Here, inventory decreased by 1.58% M/M, with asking values still under pressure from the previous year, down 5.41%.

Despite these fluctuations within specific categories, the Sandhills Equipment Value Index (EVI) remains a key indicator of market performance, providing buyers and sellers with a reliable gauge to understand current conditions.

Conclusion

The emerging trends reveal a challenging environment for heavy-duty construction equipment, while medium-duty equipment appears to be capitalizing on current market nuances. For industry stakeholders, adapting to these shifts will be essential as they strategize for the remaining fiscal year. The Sandhills Global reports continue to serve as a vital resource for tracking these changes and making informed decisions in an evolving market landscape.

For those in the market for used equipment, understanding these trends is not just a matter of observation—it's about positioning for opportunities in a distinctly divided sector.