Used Equipment Price Inflation Appears to be Slowing, Ritchie Bros. Says

The Ritchie Bros. August Market Trends report shows that the auction price of second-hand equipment and trucks in the United States has been declining since reaching a significant peak earlier this year. The auction company said that from January to June 2022, as interest rates fell, infrastructure investment increased and commodity prices rose, the demand for equipment reached a record level.

The highest inflation rate was still transportation, with a year-on-year growth of 28% and 27% for truck tractors.

However, price inflation appears to be slowing in most categories. Compared with last month, the biggest drop was in transportation, which was 28% this month, 40% last month, and truck and tractor dropped from 39% to 27%.

"Equipment and truck prices in the United States and Canada are still rising year by year," said Doug Olive, senior vice president of pricing. "However, with the normalization of the transport and logistics markets, we have seen a decline in truck prices. We have also seen similar price trends in other industry indexes, with year-on-year growth, but a month on month decline." In the three months ended July, the price of second-hand medium earth moving equipment increased by 15% (± 1.5%) compared with the same period last year. Richie Brothers.

Rich said that compared with large earthwork equipment, medium-sized earthwork equipment continues to show a higher inflation rate, with a gap of about 3 percentage points.

Rich said that in the three months ended July 31, 2022, the prices of second-hand large and medium-sized earthwork categories rose by 12% and 15% respectively compared with the same period last year. In the three months ended July, compared with the same period last year, the price of second-hand large earth moving equipment rose by 12% (± 1.5%). Richie Brothers.

The price of aerial equipment (telescopic boom, scissor lift, boom lift) has increased by 13%.

Truck tractors continue to be impacted by the rise, with a year-on-year price increase of 27%. Compared with the same period last year, the price of professional trucks has also increased by 18%. Occupations include dump trucks, flatbed trucks, booms, water, water tanks, van type trucks, refrigerated trucks, field services, and concrete mixers.

In terms of retail channels, the trading volume in July 2022 was 27% lower than that in 2021, consistent with the overall speed in 2022.

"Tight supply is still the theme of the retail market, and lower than typical sales volume has driven strong pricing. In July, retail value increased by 2%," said Doug Rusch, managing director of House sales. "Excavators show strong pricing. In the past 90 days, the retail value of all types of excavators has risen by 4% to 5%. Since June 2022, the auction price of excavators has slowed down. Since then, we have seen the auction price of small and small excavators drop by 6% to 7%, while the price of large excavators drop by 2%."

Large compact excavator

According to Ritchie Bros, the auction volume of excavators decreased year on year due to the slowdown in production. In the first half of 2022, the company's sales of large excavators in the United States decreased by 33% compared with the same period in 2021. The top three brands in sales are Caterpillar, John Deere and Komatsu.

The sales of Caterpillar and John Deere excavators in the past 90 days show that the median price has decreased by 7% and 6% year on year. However, the price of Komatsu excavator, the third common brand sold recently, dropped by about 23%, and its products are about six years older than those sold in 2021.

In general, Rich said, the median price of large excavators fell by 9% year on year, and these machines are nearly two years older than those sold in 2021.

Small excavators are another matter. In the United States, sales of small excavators increased by about 4%. In Richie Brothers, SM, John Deere and Caterpillar are the top brands sold.

In the past 90 days, the price of SM has dropped by about 13%, and the units sold are about 39% more than those sold in 2021. In contrast, the use of John Deere compact excavator units sold in the past 90 days has decreased by 43%, and the price has increased by 18% year on year. Caterpillar compact excavator prices have also risen recently, up 6% over 2021.

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