Inventory Declines Across High-Volume Age Groups Driving Equipment Value Increases
FEB 15, 2022 - 6:17 am
According to a new market report from Sandhills Global, inventory declines in certain age groups are driving value increases in the heavy-duty truck, construction equipment and farm equipment markets.
For example, the five-year and younger and five- to 10-year age categories within the heavy-duty construction equipment market, which together account for two-thirds of construction equipment inventory, experienced a 46.7% year-over-year inventory decline from January 2021 to January 2022. Asking values in these two age groups, meanwhile, increased 8.8% year over year.
The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI), which is outlined in the charts below. For 2022, Sandhills has enhanced its EVI with new metrics. The data now includes model year equipment actively in use, which grows the used equipment population beyond what is available in auction and retail markets. New EVI data, already available for the United States, is also now available for Canada to better reflect machine values by location. The enhanced version of Sandhills’ EVI requires Sandhills to restate values starting in January 2022, so prior numbers will not be comparable to the new values.
U.S. Used Heavy-Duty Trucks
The Sandhills EVI shows auction values for used heavy-duty trucks were up 64.3% year over year in January. Asking value gains were also high, reaching an increase of 48.7% year over year.
More than half of used heavy-duty trucks fall into the five- to 10-year age group, a segment whose inventory levels have fallen 70% year over year. Values in the five- to 10-year age group grew 105.8% year over year at auction and 74.6% year over year in the asking market.
U.S. Used Heavy-Duty Construction Equipment
Auction values for used construction equipment continue to climb, gaining 10.6% year over year in January, while asking values increased 4.8% year over year.
Overall inventory levels for used construction equipment are down 42.5% year over year and these dropping inventory levels continue a trend of month-over-month declines.
U.S. Used Farm Equipment
Used farm equipment posted a 12.6% year-over-year auction value increase in January, according to the Sandhills EVI. Asking values also continued an upward trend, increasing 6.8% year over year.
Within the 10- to 25-year age group, which accounts for more than one-third of all used farm equipment in Sandhills’ marketplaces, asking values increased 18.7% year over year.
Compared with the zero- to 10-year age group, where farm equipment inventory levels declined 48% year over year on average, the 10- to 25-year age group experienced significantly less inventory decline, down 19.4% year over year.
With a multi-generational workforce across all industries and the job market more diverse than it has ever been, job seekers in transportation, logistics and equipment finance are proactively looking for ways to provide equal opportunities for individuals with a diverse... read more
Matthew Green, managing director and group head, Equipment Finance at CIBC Bank USA, joined CIBC from J.P. Morgan at the end of 2021 with more than 20 years of leasing, lending and capital markets experience to launch the company’s equipment... read more