U.S. Used Heavy Equipment Market Update for October 2024

According to a recent October 2024 report, the inventory levels are trending up for used heavy-duty construction equipment. In the case of used medium-duty construction equipment, the inventory levels have been steady. This was revealed in a new report by Sandhills Global’s for October 2024. In the details provided in this U.S. used heavy equipment market report, the fallout for the sellers as a result of the increasing inventory levels has become evident. The impact as expected has led to both the asking and auction values falling. This fall has been recorded for both the medium and heavy-duty equipment.

The U.S. used heavy-duty construction equipment market

Starting first with the U.S. used heavy-duty construction equipment market, the inventory levels have continued to rise for nine consecutive months. This market in Sandhills’ U.S. marketplaces which focuses on dozers, crawler excavators, and wheel loaders registered a slight fall in inventory levels by 1.85% M/M but compared to the previous year’s levels, the inventory levels registered an increase of 19.26% in the current month. The report suggests that these increases were prompted by the wheel loader category, where the inventory levels rose by 35.85% Y/Y.

This has had a significant fallout for the asking values. It has now been straight seven months since the asking values have been falling. The asking values fell by 2.36% M/M and 5.82% Y/Y in the current month. Out of the three categories, the crawler excavator asking values recorded the highest decrease of 8.62% Y/Y.

Overall, the report shows that the auction values have fallen faster than the asking values. This reflects a continuing trend of auction prices falling now for a seven-month-long period. In the current month, auction values fell by 2.15% M/M and a huge 10.29% Y/Y. The highest decrease was witnessed in the crawler excavator’s category where the auction values fell by 13.68% Y/Y.

The U.S. used medium-duty construction equipment market

As far as the U.S. used medium-duty construction equipment market is concerned, the inventor levels have appeared to be steady reflecting somewhat a steady trend. This market which represents used loader backhoes, mini excavators, and skid steers, witnessed the inventory levels falling 3.34% M/M while representing an upward trend of 26.58% Y/Y in the current month. The greatest M/M decrease was evident in the Track skid steers market with inventory falling by 4.12%. The largest Y/Y increase was witnessed in the wheel skid steers which rose up by 35.96%.

The market situation reflected a growing concern for sellers. The steady trend witnessed in the US. used medium-duty construction equipment market has prompted a further decline in the asking values. It is worth noting that the downward trend in asking values has now continued for seven months straight. The asking values did tick up slightly by 0.3% M/M but underwent a fall by 5.34% Y/Y.

The track skid steers asking values were at the receiving and reported a Y/Y decrease of 7.58%. On the other hand, the loader backhoes reported the greatest M/M increase rising by 1.92% M/M.

As far as the auction values are concerned, the situation has not been any more different. The auction values too have been falling for seven months straight. The M/M values may have slightly increased by 0.36% but significantly fell by 8.24% Y/Y in the current month. Regarding the auction values, the wheel skid steer category went through the highest fall with a Y/Y decrease of 11.69%.

What will be the fallout of the rising inventory levels in the near future?

Since rising inventory levels have been recorded in both the heavy and medium heavy-duty equipment, this is leading to a fall in the auction and asking values in both these markets. It signifies that the auction and asking values continue to fall in the market as the rising inventory levels are putting strong pressure on dealers.

The increase in inventory levels has continued for quite some time now and this has prompted the auction and asking values to fall. Amidst the fallout of these developments, the market seems to be moving towards a further decline in the auction and asking values in the last two months of the current year. This is evident because the inventory levels of the construction equipment have now reached a tipping point.

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