In the dynamic and rapidly changing construction industry, staying aware of the market trends and challenges is the key to sustaining the industry. Both buyers and sellers need to keep an eye on the changing trends so that they may reevaluate their strategies on the equipment or fleet upgrade. These trends and persistent issues will keep you informed what is the best time to make informed decisions and how to take the most advantage of the current situation. The performance and the ongoing issues of the used heavy equipment market in the U.S. during the month of September 2023 are shown in this report from Sandhills.
Used Heavy-Duty Construction Equipment
Trends:
Used heavy-duty construction equipment performed relatively complexly in the market. The overall data showed a year-over-year growth of 10.87%, indicating a substantial supply of used heavy equipment in the market, even if inventory levels were largely unaffected in September.
Issues:
Despite the unaffected supply of heavy-duty equipment, the fluctuating pricing factor was the major barrier. Asking prices were down 0.09% from month to month and 4.23% from year-to-year trend. Whereas, auction values dropped by 8.01% and 1.71% respectively throughout the year. This pattern shows a decreasing difference between asking and auction prices, advising sellers to adjust their pricing strategies to reflect current market conditions.
Used Medium-Duty Construction Equipment
Trends:
Unlike the heavy-duty equipment trend, the medium-duty equipment trend grabbed the attention of market analysts due to some unexpected turnarounds. Inventory levels increased by 3.66% from month to month and an amazing 53.63% from year to year. The major factor of this expansion was the flooding of late-model track skid steers in the market.
Issues:
Although there is more inventory available, asking and auction prices have declined over time. The loss in asking prices was 1.38% month over month and 2.76% year over year, whilst the decline in auction prices was 3.11% month over month and 9.51% year over year. Surprisingly, with a significant 12% year-over-year fall, the decline in auction values was particularly severe for used wheel skid steers and small excavators.
Overcoming the Challenges
After the detailed overview of the market report for the used heavy duty and medium duty equipment, the question arises of how to overcome the issues and take a better strategic move in the next run.
It is obvious that the market is changing. Given the downward trend in auction values for heavy-duty equipment, sellers must closely align their asking prices with market realities. On the other hand, the rise in demand for medium-duty machinery offers buyers some interesting alternatives. To guarantee profitable deals, heavy equipment suppliers must approach pricing strategically and realistically.
Flexibility is important for both buyers and suppliers. Since market dynamics are active, strategies should change as per the requirement. Dealers can take proactive measures to handle aged inventory. They should examine listings to make sure they are optimized with competitive prices, interesting descriptions, and multimedia content like videos to increase consumer confidence.
Source: Sandhills Market Report