How 2024 Reshaped The Equipment Market: What Buyers Should Know

It’s the last month of the year and things are unfolding to see how the year has been for the construction and equipment industries. 

The year 2024 has been a rollercoaster for the equipment market that has made a lot of things change for buyers, contractors and equipment manufacturers. 

Over the past year, the market for old equipment has seen significant change. A combination of increased demand, shifting prices, and housing market changes has changed the way we acquire and sell heavy equipment as contractors and dealers have had to deal with industry issues and economic developments. 

At this time, it has become very important for all equipment buyers to make strategic and informed decisions regarding equipment purchases. 

Does the pandemic effect still exist?

The manufacturing of equipment was disrupted by the epidemic, as is well known. 

Between 2020 and 2022, fewer machines were introduced to the market due to supply chain bottlenecks and production halts. The repercussions are still felt today. 

When contractors look for almost brand-new equipment, meaning machines that are less than two years old and have fewer than 1,000 hours on them, they frequently come up empty-handed. 

Many machines are either caught in rental fleets or kept by contractors unwilling to share with them due to high borrowing rates and the exorbitant cost of new equipment.

On the other hand, fresh inventory is in short supply as the industry’s “one-year roll” of switching from new to old machinery has extended into a “two-year roll.” 

For those looking for the ideal balance between value and functionality, patience is essential since dealers and auction houses operate through more complex machinery at this time.

It would be great to wait for a while and observe the market trend closely and then make any decision.

The used equipment market is quite vigilant for buyers

Although there are some restrictions, the used market presents an opportunity for contractors wishing to increase the size of their fleet. Particularly in medium and heavy construction equipment, auction stocks have increased. 

However, there are risks associated with buying at auction because buyers have limited options if a machine performs poorly after purchase.

Note that the dealerships of heavy equipment suppliers excel in this situation. Even though auction deals could seem attractive, the assistance and assurances provided by trustworthy dealers frequently exceed the first financial savings. 

To make sure they’re receiving the greatest bargain, astute purchasers are encouraged to compare dealer inventories with auction prices.

High demand for housing might be a ray of hope

The fixed demand for housing is one area of the market that is doing well. The National Association of Realtors predicts a slower decline than originally predicted, even though single-family housing starts have increased and house prices are predicted to cool. 

This indicates that there will be ongoing chances for contractors in growth areas to land jobs and maintain equipment.

Contractors preparing for 2025 should carefully assess their equipment requirements as the year comes to a close. 

Finding the ideal used machine, taking advantage of tax breaks like the Section 179 deduction, or carefully planning when to make purchases, the secret is to be proactive and educated.

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