ConstructioNext is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Some Construction Equipment Getting More Valuable With Age

Petro Perutskyi/Alamy Stock Photo Vibratory roller.
Despite the average age increasing on the resale market and in the auction channel, values went up last year, according to EquipmentWatch. Meanwhile, the most recent numbers show constraints on equipment availability may be easing.

Recent reports from EquipmentWatch show that prices of equipment in the auction and resale channels are going up and average forced liquidation values are rising as well.

Last year’s trends were highlighted in EquipmentWatch’s “State of the Construction Equipment Economy in 2022” report. Meanwhile, the company’s monthly report also pointed to a sharp rise in values of equipment going up for resale.

EquipmentWatch uses surveys, market trends, insights and analysis of equipment valuations to paint a picture of the construction equipment economy.

The average age of aerial lifts, compactors, drilling equipment, road maintenance equipment and skid steer loaders has increased among available equipment in the resale market, but that hasn’t stopped their values from increasing.

According to the annual report, road maintenance equipment and trucks also saw rises in the average age of available equipment on the auction market, while the average forced liquidation values rose as well.

“Conversely, two equipment categories saw their forced liquidation value dip in the auction channel, even as the average equipment age got younger: compactors and excavators,” the report stated.

EquipmentWatch said the “pockets of strange behavior” are symbolic of a tug-and-pull going on throughout the economy at large.

“Consumers will behave how consumers want to behave—and how they need to behave to solve a market issue,” the 2022 report stated. “If a construction firm needs a certain piece of equipment to complete a project, that firm will source it.”

In total, six categories of equipment that EquipmentWatch tracks posted gains in fair market value in the resale channel in 2022: aerial lifts, compactors, drilling equipment, road maintenance equipment, skid steer loaders and trucks.

In the auction channel, aerial lifts, cranes, drilling equipment, graders, road maintenance equipment, trucks and wheel loaders all posted gains in FMV in 2022.

While several categories posted gains in the resale market, EquipmentWatch said overall fair market value gains were relatively flat year over year in 2022, with a 0.7% increase. That trend did not continue through the entire year.

“After remaining relatively flat throughout 2022, construction values dipped significantly in November,” EquipmentWatch said in its January report. “Month-over-month construction values dropped by 4.1% on both the resale and auction channels.”

According to EquipmentWatch’s latest monthly report, November represented the biggest single month change in values since January 2022, when average resale values rose by nearly 6%. The most recent numbers available suggest constraints on the availability of equipment may be finally letting up.

In November, activity year over year was up in both the auction and the resale channels, though it remained below November 2020 levels. In the resale channel, activity was 8.7% higher than November 2021. Meanwhile, the auction channel saw levels of activity over 39% higher year over year.

Increasing values in the auction channel were reflected in Equipment Watch’s state-of-the-economy report, which said the average forced liquidation value for equipment in the auction channel rose 26%.

Nearly two-thirds of equipment owners and operators surveyed by EquipmentWatch said they’ve experienced issues with the lack of availability of new equipment for purchase and delays in the delivery of that equipment.

Almost half, 45% of respondents, said they were impacted by the lack of availability of equipment for purchase.

Despite some of the supply chain constraints, EquipmentWatch said 2022 was a positive year for the construction equipment rental market. It said that the American Rental Association reported construction equipment rental was up 13% in 2022, up from 10.2% in 2021. “According to our survey results, 84% of equipment owners rented equipment during the past 12 months.”

Potential trends to watch

EquipmentWatch said experts advise against over-reliance on rental equipment because the rental channel continues to experience strain.

Going forward, EquipmentWatch said that “any significant economic slowdown would likely lead to reduced demand for construction equipment in 2023, although the market will remain relatively healthy.

“Plus, even something like a 10% reduction in equipment sales could allow manufacturers to regroup a bit. That could increase access to new equipment for those equipment owners who are looking to buy it.”

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.