Used Forklift Inventory Grows Leading to Price Declines in Auctions and Markets

Insights into the Used Forklift Market Trends

In October, the market for used forklifts has exhibited a remarkable increase in inventory levels, marking a 29.07% rise when compared to the same time last year. Not only is this growth significant, but it continues a consistent upward trend spanning over several months. Indeed, the inventory for used aerial lifts and telehandlers has also been climbing steadily, leading to evident impacts on asking prices and auction values.

As we delve deeper into the statistics, the inventory for used aerial lifts in the United States surged by 1.15% month-over-month (M/M) and 3.47% year-over-year (YOY). The telescopic boom lift segment experienced the maximum monthly increase of 2.63%, while the rough-terrain scissor lift category saw an impressive annual increase of 12.26%. This upward trend reflects the escalating demand for aerial lifts, fueled by various construction and industrial needs.

Conversely, the used forklift inventory in the U.S. has experienced impressive growth for nine consecutive months. October showed a 0.83% M/M increase alongside the staggering YOY increase of 29.07%. The leading category contributing to this surge was the used pneumatic-tire forklifts with a 2.14% increase M/M and an annual rise of 32.99%.

However, despite these promising inventory figures, market dynamics have reaped adverse price effects. Asking prices in the used forklift market have dipped by 0.55% M/M and 1.53% YOY this October, showcasing a downward trend. Moreover, auction values have decreased by 0.05% M/M and a significant 7.82% YOY, continuing a past nine-month decline. In particular, the used cushion-tire forklift category has faced the largest drops in auction values, plummeting by 5.54% M/M and 9.45% YOY.

For telehandlers, even with an impressive upward trajectory that has lasted for 32 months, inventory saw a slight decline of 0.49% M/M, although it remained 19.82% higher than the previous year. Inventory growth might fluctuate, but both asking and auction values have also succumbed to downward pressure. In October, asking values fell by 1.6% M/M and 4% YOY, with auction values reflecting a decrease of 2.94% M/M and 6.38% YOY.

Examining heavy-duty equipment, which encompasses various machinery such as crawler excavators, dozers, and wheel loaders, we find that inventory levels underwent a slight uptick of 2.12% M/M even though they tumbled 7.44% YOY. Here, asking values nudged upward by 0.91% M/M, yet maintained a decline of 1.21% YOY. Interestingly, the auction values demonstrated a reverse trend by increasing by 0.53% M/M and 2.59% YOY.

Moreover, the overall market for used medium-duty construction equipment, comprising skid steers, loader backhoes, and mini excavators, revealed a modest rise of 0.28% M/M in warehouse levels, while declining 6.81% YOY, signaling a stagnation phase. Significantly, the loader backhoe sector showcased the most substantial increase M/M at 5.35%, only to see asking values drop by 0.67% M/M and 0.92% YOY.

Across various used equipment categories, a recurring theme of price declines surfaces, driven by rising inventory levels that are outpacing market demand. As seller and buyer interests fluctuate, the Sandhills Equipment Value Index (EVI) remains a vital metric for gauging market health. This index not only monitors the balance between asking and auction prices but also aids in forming informed business decisions concerning equipment liquidation and acquisition.

In conclusion, the used forklift and construction equipment market reflect a classic case of supply exceeding demand, pushing values downward. Market stakeholders must remain vigilant in adapting to these ever-evolving dynamics, balancing inventory growth with effective pricing strategies in order to thrive in this competitive landscape.