Although the sliding prices of the construction equipment on resale and auction could be the demand for softening, there are also concerns that the rates can throw a highly globalized supply chain. “The values of used construction equipment have been constantly decreasing during the past year; There has been a fall of 1% each month, “says Sam Pierce, sales engineer of the equipmentwatch equipment analyst.
“And the year -on -year construction values have dropped by 8%, which is a fairly significant fall.”
The resale and auction data followed by equipmentwatch have been slowly disinfulated in both the construction and elevators categories over the last year. The values have also been diminishing, while the age of the machines has been quite consistent, a sign of demand possibly of demand instead of a stroke of older machines.
“It is not uncommon to see that the values fall and the age is maintained at the same time, and the use is also lower,” says Pierce. “The values were expected to fall, it would be a larger or more used team, but we don’t see it here.”
The price slide is, however, descending from a plateau that was formed during the Covid-19 pandemic, when the team was difficult to obtain. But also the 18-month time for new teams in Backorder, stands out Korin Hasegawa-John, CEO of the firm of Consulting Ducker Carlisle. “This time of book orders ends: manufacturers can deliver -quickly now if they need it,” he says. And with the global supply chain again, there is a slight joke in the supply of machines in the United States right now. “Now we don’t see the cycle being abnormal.”
Rates spectrum
Given the possibility that the new Trump Administration rates affect the construction team market, Hasegawa-John sees the original team manufacturers (OEMs) who have been taking a page since 2017. “As at that time, some entities will look for resignations and probably there will be winners and losers based on exemptions and resignations granted granteds. [from tariffs]. “ There are also other options and Hasegawa-John says that instead of tracking base prices to reflect the fare costs, many OEMs added a tariff recharging line to new purchases during the first Trump administration. According to these types of additional expenses, it can be returned to remuneration if the entry costs have an impact. ” Many OEMs have various strategies and plans ready to go, but they have not yet made a movement.
The reduction in demand can also discourage the OEMs to reorganize their world supply chains and, as Hasegawa-John says [of their supply chains]. “”
Manufacturers such as Caterpillar Inc. They have already been absorbing part of this softening demand for new heavy equipment in 2024. The IRVING OEM, based in Texas, recently reported a 5% year -on -year decrease in sales and revenue from the fourth quarter, including a decrease of 8% in its construction segment alone. Caterpillar’s CEO, Jim Umpleby, said on January 30’s earnings that “although we expect to be combined with non -residential and residential construction expenditure to be similar to the levels of 2024, our current planning cases reflect lower demand for new equipment.”
