Getting through the summer construction season, even with a boom in data center work, hasn’t translated into an increase in used equipment prices, according to the latest data from industry analyst EquipmentWatch. But affordable used iron hasn’t stopped OEMs from setting some sales records in recent months.
“Construction [used equipment] has followed the seasonal trend [this summer]but overall prices are down compared to 2024 and 2025, and why we’re not entirely sure,” says Brendan Gallagher, data analyst at EquipmentWatch. “There may be older equipment on the market.”
Figures from EquipmentWatch support this view, with an 18.22% drop in construction equipment auction values in August compared to the same period in 2024 and a 6.97% increase in equipment age. The demands of hyperscale data center developers that now drive much of the U.S. construction industry have not led to fierce competition for used equipment.
“Auction values follow annual trends [for construction and lift] but overall they’re going down,” adds Gallagher, who sees prices continuing to drop. “It could be that there are more machines on the market, or people are being more selective with older equipment and the hours that go into it.”
Concerns earlier this year about the impact of tariffs did not have much of an impact on demand. “Even the early peak this year [in prices] It wasn’t as high as usual,” he notes. While US tariff policy remains unresolved, some manufacturers such as Volvo Construction Equipment have advanced plans to mount more ground assembly to avoid import surcharges (see p.75).
Used machine prices may have stabilized, but that doesn’t mean there isn’t aggregate demand for construction equipment. In some cases, data center builders and those in other active market sectors may opt for new machines.
This is certainly seen in Caterpillar’s second quarter numbers, released in early August. The Irving, Texas-based manufacturer posted its biggest sales volume in the second quarter, with $20.5 billion in sales and revenue, up 24% year-over-year.
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Caterpillar experienced its sixth consecutive quarter of US construction equipment sales growth of 22%. CEO Joe Creed credited that to “a very strong rental fleet load and equipment sold to non-residential and residential construction,” speaking on an Aug. 4 earnings call with analysts. Specifically, this past quarter marked the start of the company’s Major Projects joint venture with its dealer network to support major infrastructure, energy and data center efforts.
The high-volume approach represents a major shift for Caterpillar in how it will support megaprojects directly with heavy equipment rental fleets.
New machine sales also boosted John Deere, with the Moline, Ind.-based manufacturer reporting $3.6 billion in sales for its construction and forestry division in its third quarter. In an Aug. 20 earnings call, the company said the division’s net sales rose 18% year-over-year and expects them to remain strong for the rest of the year, up 20% in fiscal 2026 compared to 2025. Deere attributed those strong numbers to demand from data centers and other projects, as well as a strong factor.
