Backhoe loaders have been an integral part of the dynamic industry of construction equipment for decades. This most sought-after equipment helps with a variety of jobs from excavating trenches to lifting big cargo. Analyzing the data from 2023 reveals that the backhoe marketplace is going through changes in demand, sales, and prices. Staying up-to-date on these trends will help manufacturers, dealers, and customers navigate the competitive backhoe market of 2023 as the construction industry continues to develop.
Decline in Popularity
Recent reports claim that there has been a drop in the use of backhoe loaders over the past few years. According to data from Randall Reilly’s EDA equipment finance statistics, the sale of new backhoes decreased by 7.6% between June 2022 and May 2023. Similarly, during the same time period, used backhoe sales significantly decreased by 20.5%. The introduction of comparable construction equipment and shifting market demands are just two reasons for this decline in sales.
Top-Selling New Models
The John Deere 310SL, which had 360 financing commitments, was the best-selling new model of backhoes. Caterpillar, a well-known brand in the construction equipment industry, took second and third place with its Cat 420 (267 units) and Cat 420XE (213 units) backhoe loaders. This information emphasizes the continuing influence of well-known brands in the marketplace.
Market Leader in Used Equipment
The Deere 310 SL kept its lead in the used equipment market with 209 financed units. The 580 Super N (173 units) and 580 N (85 units) models from Case CE took second and third place, respectively. This shows that consumers seeking for a used backhoe for sale have a certain degree of confidence and awareness of these top companies.
Region-Wise Trends in USA
The geographic distribution of backhoe sales provides an interesting perspective. Texas has become a big player in the sales of both new and secondhand equipment, holding a significant share of the industry. Texas made up 21% of all leased sales in the new backhoe category. Likewise, Texas customers funded 18% of the sales of used backhoes, demonstrating a constant need for these machinery in the state. For both new and used equipment, other active areas included California, Arizona, and Missouri.
Auction Insights
Backhoe auctions showed Cat and Deere occupying the top pricing positions similar to the top-selling positions. The 2019 Cat 440 with just 97 hours sold for $127,500 at an auction during that time. This shows how highly valued low-hour, well-kept machinery is in the used equipment market.
Trends in Used Market Prices
Prices for used backhoes increased by a minimal 2% between June 2022 and May 2023. The average price of a used backhoe went up from $67,211 to $68,668 between July 2021 and May 2023. In particular, the biggest price rises occurred in February 2023 (33%) and April 2023 (2.4%), respectively. In addition to price increases, the average lifespan of used backhoes also increased a bit, from 9.34 to 9.94 years, demonstrating the machines’ ongoing durability.
Overall, the backhoe market is going to have a mix of opportunities and limitations in 2023. Despite a fall in new equipment sales, some models from well-known manufacturers like John Deere and Caterpillar continued to be popular. Texas started to become a major player in the sales of both new and old equipment. Whereas the auction prices highlighted the worth of well-maintained equipment.