What’s Happening In The Backhoe Loaders Market In 2024?

When it comes to innovation and tech integration in construction equipment, backhoe loaders are never laid behind as it is still one of the most south-after equipment. Not only does it help in construction sites but in mining, landscaping and other agricultural jobs, it outshines due to its reliable performance.

In the first half of 2024, the backhoe loader market, in both the new and used sector, has recorded a significant trend. The sales and overall revenue the market captured are noteworthy and enough to keep the stakeholders optimistic for the rest of the year.

New Backhoe loaders: Increased sales and decreased market share

New heavy equipment is already available at exorbitant prices which has gone away from the affordability factor for many buyers. However, the new models of the backhoes are still available at a reasonable cost which can be justified with the recent sales of the new backhoes. The net sale of the new backhoe in the United States has been recorded as totalling 2,487 units between June 1, 2023, and May 31, 2024.

In comparison to the 2,399 units sold during the same period last year, this is a 3.7% increase. Despite this expansion, new backhoes’ market share in the equipment finance industry as a whole decreased somewhat, from 1.9% to 1.7%, which might be a reflection of the increasing demand on job sites for more portable and flexible equipment.

Which brand and State took the lead?

In the new backhoe market, Caterpillar (Cat) came out as a leading brand, taking 36.4% of all sales, overtaking the previous leader, Deere. Whereas, Case CE, the third-highest seller, lagged closely behind. In terms of units financed, the Cat 420, Deere 320 P-Tier, and Cat 420 XE were the most popular new models being sold in this said time period.

The interesting thing to note here is that Texas turned out to be the biggest market for new backhoes, with 22% of total sales. Whereas, California came in second with 11% and Pennsylvania with 5% in selling the new backhoe loaders.

Used Backhoe Market

In contrast to the new backhoe market, it was seen that the used backhoes were not in trend. Sales of used backhoes decreased by 8.3% to 3,337 units over the same 12-month period from 3,638 units the year before. Along with that, there was a minor decline seen in the market share of used backhoes, from 4.7% to 4.4%.

The reason for this decline might be the prices of used backhoes increased to their highest point in five years despite a drop in sales volume. In the second quarter of 2024, the average cost of a used backhoe increased from $70,878 in 2023 to $75,538 in 2024. However, the average age of used backhoes dropped slightly, from 9.4 to 8.6 years, suggesting a preference for more recent, priciest models.

In the used backhoe market, Deere, Case, and Cat were still the leading brands. Whereas, the most sought-after models were the Deere 310SL, Deere 310L, and Case 580 Super N. Texas remained the top state for sales of used backhoe loaders, accounting for 19% of all sales. Following closely after, with 6% and 5% of the market share, respectively, were Oklahoma and Missouri.

Caterpillar outshined in Auction

Backhoe auctions were a particularly lively market, with Caterpillar catching the top spots as usual. CAT claimed 17 places out of the top 20 auction values that were recorded between June 1, 2023, and May 31, 2024. During this time, an unused CAT 420 sold for $135,000 at an Iron Bound Auctions event in Seminole, Texas, setting a record price for a backhoe auction.

Takeaway

The market for compact, portable and the most flexible equipment is still active and popular among buyers in the United States. The backhoe loader market is the prime example of this compact equipment that has seen a surprising growth in the used and new backhoe market. The market for the new backhoe loaders was led by Caterpillar, followed by Deere and Case. Whereas Texas and California were the leading states in buying new backhoes. On the other hand, the used market was in a slight decline due to the high price range but the market was still taken over by Caterpillar and states that outperformed were Texas, Oklahoma and Missouri.

Whether you are looking for a backhoe loader, wheel loader or any used equipment in construction, stop by us at MY Equipment. We are based in Houston, Texas and deal with quality used equipment from all leading brands. We are the leading exporter of the equipment in town as well. Contact us right now for all of your equipment queries. 

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