Inventory Increases Across Used Equipment Types Accelerated in May

According to Sandhills Global, after inventories increased across the heavy-duty truck, semitrailer, agricultural equipment and heavy construction machinery marketplaces in April, the trend accelerated in May. Truck and trailer inventory levels, for example, increased by double digits in May, while inventory levels in several construction and farm equipment categories increased between 4% and 9%. According to Sandhills, when rising inventory level trends occur, auction value decreases usually follow. In fact, Sandhills observed auction value decreases in several categories ranging from 2% to 9% month over month between April and May.

“Sandhills’ market reports are showing clear trends that sellers would be wise to track,” Mitch Helman, sales manager at Sandhills Global, said. “Truck, trailer and construction equipment sellers in particular should pay close attention to the market, as inventory levels are up and values are heading lower.”

The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets as well as model year equipment actively in use.

U.S. Used Heavy-Duty Trucks

  • Inventory levels increased by double digits in May, while values continued to fall. The day cab category led the way with the steepest value declines and the highest inventory level increase. Inventories rose 11.48% month over month following consecutive months of increases and were 33.24% higher year over year.
  • Asking and auction values have decreased for a few months in a row. Asking values were down 2.69% month over month and 22.54% year over year in May, while auction values decreased 4.62% month over month and 27.67% year over year. Sandhills expects value trends will continue moving lower.

U.S. Used Semitrailers

  • Inventory levels have increased for several consecutive months and were up 14.63% month over month and 41.49% year over year in May. The dry van trailer category showed the largest increases. Both the dry van and reefer semitrailer categories are following the inventory trends seen in used heavy-duty trucks. Sandhills expects inventory trends to continue rising.
  • Like heavy-duty trucks, values for used semitrailers have experienced months of decreases. Asking values declined 4.58% month over month and 25.59% year over year in May, while auction values fell 6.09% month over month and 30.12% year over year. Sandhills expects a continued softening in values.

U.S. Used Medium-Duty Trucks

  • Inventory levels have been increasing since the start of 2023. Inventories increased 9.39% month over month and 20.25% year over year in May.
  • Auction and asking values decreased by 2% to 3% each month since January. In May, asking values increased 0.61% month over month, decreased 9.89% year over year and are currently trending down. Following consecutive months of decreases, auction values were down 1.99% month over month and 15.46% year over year. Sandhills expects medium-duty truck values to remain lower than they were in 2022.

U.S. Used Heavy-Duty Construction Equipment

  • Inventory levels have been holding steady since last year but recently started to increase. Dozers, excavators and wheel loaders all posted their largest inventory levels of 2023 in May. Inventories increased 2.87% month over month, rose 2.83% year over year and are currently trending up.
  • Asking and auction values continue to ease, as all heavy-duty construction equipment values are lower than last year. Asking values increased 0.5% month over month, decreased 4.04% year over year and are currently trending down. Auction values decreased slightly month over month at 0.23% and dropped 5.88% year over year following consecutive months of decreases.

U.S. Used Medium-Duty Construction Equipment

  • Inventory levels have been trending upward since the start of 2023, but totals piled up quicker in May, increasing 6.62% month over month and 38.91% year over year. Track and wheel skid steer inventories are increasing faster than other used medium-duty construction equipment categories. Inventory level changes are putting pressure on auction and asking values, especially in the skid steer category. Sandhills expects these trends to continue.
  • Both asking and auction values have decreased over the past few months. Asking values were down 0.7% month over month and 1.66% year over year, while auction values decreased 0.87% month over month and 6.06% year over year in May.

U.S. Used Farm Equipment

  • Inventory levels continued to climb and trend upward following several months of increases and double-digit year-over-year growth. Inventories increased 3.58% month over month and 29.81% year over year in May. Tractors with more than 300 HP experienced a nearly 10% month-over-month increase.
  • Asking values have held steady for a few months, while auction values have decreased. Asking values remained nearly flat month over month in May, decreasing 0.04%, and are currently trending sideways, but they were up 9.03% year over year. Auction values decreased 3.78% month over month and are currently trending sideways, but they were 2.59% higher year over year. The largest month-over-month auction value decreases occurred in the higher-class combine category.

U.S. Used Compact and Utility Tractors

  • Inventory levels moved up in May after seasonal declines in April. Inventories increased 3.47% month over month and 71.64% year over year and are currently trending up. The 40- to 99-horsepower tractor category experienced the greatest month over month inventory rise.
  • Asking and auction values peaked in 2022 and have shown signs of easing since then. Auction values are lower than they were a year ago, with asking values likely to follow. Asking values increased 0.22% month over month in May and are currently trending down. However, asking values were up 2.91% year over year. Auction values decreased 0.66% month over month and are currently trending down, while auction values were 1.55% lower year over year.

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