According to the report, construction equipment values continue to show gains year over year, although both resale and auction channels are showing signs of a slowdown in the month-to-month values, indicating a market slowdown as we enter the summer months.
FMV was down 0.7% in the resale market, marking a 0.15% decrease year to date. Values on the auction channel also continued their slowdown with a dip in value of 1.8% month over month and an overall decrease of 4% since the start of the year.
On the auction side, average values were down 1.8% from March 2023 but showed a much healthier gain year over year with values at 36.7% higher than April 2022 and 34.1% higher than April 2021. Stats show there has been an overall 4% decline since the start of the year.
Analysis suggests that construction firms and equipment fleet owners appear to be holding onto and using their aging equipment.
Data collected by EquipmentWatch was in line with another recent industry survey in which more than half of the respondents indicated they were increasing their maintenance budgets to keep current fleets working due to difficulty buying new equipment.
EquipmentWatchAmong resale and auction channels, some of the top-selling types of equipment were crawler excavators, compact track loaders, articulated wheel loaders, compact excavators, and skid steer loaders.
Hydraulic excavators and CTLs are most prevalent in both markets, accounting for nearly more than a quarter of either segment according to EquipmentWatch’s May report.
The age of the equipment on the resale market was 4.1% down on a month-to-month basis and only up 0.5% from March 2022. The greatest jump in age was from March 2021 to March 2023 at 19.5%.
Like the previous month, popular model years in the resale market range from 2015-2019, with a total of 21.7% favoring either 2017 or 2018.
The average age of equipment on the auction channel in April 2023 was 1.6% lower than in March 2023. The slight dip comes after age levels were up over 12% monthly in March. Equipment age continues to trend down on a year-over-year basis with a 6% decline compared to April 2022.
Overall, the model year range is like that in the resale market as well with 2015, 2017, and 2016 being the favorite choices. Approximately one-third of firms and fleet owners opt for a particular model year.
The other gauge in both markets is the usage rates. For equipment in resale, usage rates were up across the board from 1.1% month-over-month to 14.8% compared to April 2021. Conversely, usage rates declined across the board on the auction market. Rates were down 4.6% on a month-to-month basis, 11.1% versus last year, and 5.9% compared to April 2021.
The monthly report from EquipmentWatch tracks resale and auction prices for over 15,000 models across 389 manufacturers throughout North America.