July Insights: Used Construction Equipment Trends in the U.S

Amid the uncertain market situation, the used equipment market in the United States has undergone some significant shifts. Many notable figures are coming out of the market, stating interesting data sets for the stakeholders. Inventory levels of used construction equipment have changed compared to the previous months, be it heavy-duty machinery or medium-duty equipment. A thorough overview of the insights is discussed in this report, originally taken from data reported by the Sandhills Market Report.

Declining Values of Heavy-Duty Equipment Despite Inventory Surge

The month of July is the start of the second half of the year 2024, which is already occupied with significant equipment inventory levels.

Recent data from Sandhills shows that inventories increased significantly, by 20.43% year over year (YOY) and by 1.75% month over month (M/M). This pattern comes after several months of rising inventory levels, which could indicate a slowdown in demand or an excess supply on the market.

In the heavy-duty equipment category, used wheel loaders for sale were at the top showing the biggest improvement in sales. This category’s inventory grew by a surprising 32.81% YoY and 3.49% M/M. This sudden increase may indicate that wheel loaders are becoming more widely available, which could affect pricing changing aspects.

The asking price, on the other hand, has slightly increases which was recorded as 0.12% M/M. This rise in asking price has been seen despite the increase in inventory, which is comparatively a good sign for the dealers.

There is a general downward trend in prices, though, since asking values are down 5.13% from July 2023. This decline suggests that sellers might be modifying their demands in reaction to the increasing stock.

This indicates that buyers at auctions are becoming more careful, maybe as a result of the market’s increased supply or unpredictability.

Inventory Level and Asking Value Trends in Medium-Duty Equipment

Compared to the heavy-duty equipment, the medium-duty equipment has also shown a significant increase in the inventory level. However, a light turnover was experienced in the asking and auction values.

Inventory levels increased by 45.69% YOY and 1.57% M/M in July. The tracked skid steer category, whose inventory increased by an astounding 62.44% year over year, was a major contributor to this expansion. The quick expansion of this category points to a possible change in the dynamics of the market as more units become available for resale.

The asking prices for medium-duty construction equipment fell by 6.9% YoY and 0.35% M/M. whereas the auction values fell by 10.97% YoY and 0.7% M/M.

July 2024: Percentage changes in inventory, asking values, and auction values for U.S. used construction equipment.

Moderate Inventory Gains in Used Lifts

The used lifts category is more or less similar to the heavy and medium-duty equipment. The inventory level grew by 0.05% M/M and 10.07% YOY showing a straight rise. Although the growth rate was not as rapid as in other equipment categories, the consistent rise suggests a slow accumulation of units in circulation.

Asking prices for secondhand lifts decreased by 10.53% YoY and 2.29% M/M, maintaining a multi-month downward trend. Even more dramatically, auction values for secondhand lifts decreased, falling by 4.26% M/M and a noteworthy 17.84% YOY.

Wrap Up

The market data for July 2024 show a different pattern in the used construction equipment market in the United States, rising inventory levels and falling values. Whether in the lift, medium-duty, or heavy-duty categories, dealers are dealing with an increasingly difficult environment as supply exceeds demand and drives down pricing.

This is the high time for dealers and contractors to keep a close eye on the current trends. This fluctuating market is a mere indication of the changes in the buyer’s preferences, unstable economy and supply disruption at certain points.

Right now, it’s evident what the main lesson is: inventory is rising, values are falling, and the people who can succeed in this challenging climate will be the ones who can do it with the most agility and understanding.

Whether you are in search of used wheel loaders, or lift trucks, stop by us at MY Equipment for all of your equipment needs. We are based in Houston Texas and deal with the quality used equipment from leading brands. We offer the best deals in town with guaranteed satisfactory customer service.