News

Inventory Declines Across High-Volume Age Groups Driving Equipment Value Increases

The newest Sandhills Global Market Report spotlights how inventory declines in certain age groups are driving value increases in Sandhills’ heavy-duty truck, construction equipment, and farm equipment markets. For example, the 0- to 5-year and 5- to 10-year age categories within the heavy-duty construction equipment market, which together account for two-thirds of construction equipment inventory, experienced a 46.7% year-over-year inventory decline from January 2021 to January 2022. Asking values in these two age groups, meanwhile, increased 8.8% YOY.

The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. For 2022, Sandhills has enhanced its EVI with new metrics. The data now includes model year equipment actively in use, which grows the used equipment population beyond that available in auction and retail markets. New EVI data, already available for the United States, is also now available for Canada to better reflect machine values by location. The enhanced version of Sandhills EVI requires Sandhills to restate the values starting in January 2022, so prior numbers will not be comparable to the new, more insightful values.

Chart Takeaways

Sandhills Market Reports highlight the most significant changes in Sandhills’ used heavy-duty truck, construction equipment, and farm machinery markets. Each report includes detailed analysis and charts that help readers visualize the data. This month’s reports display asking and auction values with direct comparisons to trends in inventory levels.

U.S. Used Heavy-Duty Trucks

• The Sandhills EVI shows auction values for used heavy-duty trucks were up 64.3% YOY in January. Asking value gains were also high, at an increase of 48.7% YOY.
• More than half of used heavy-duty trucks fall into the 5- to 10-year age group, a segment whose inventory levels have fallen 70% YOY. Values in the 5- to 10-year age group grew 105.8% YOY at auction and 74.6% YOY in the asking market.

U.S. Used Heavy-Duty Construction Equipment

• Auction values for used construction equipment continue to climb, gaining 10.6% YOY in January, while asking values increased 4.8% YOY.
• Overall inventory levels for used construction equipment are down 42.5% YOY, and these dropping inventory levels continue a trend of month-over-month declines.

U.S. Used Farm Equipment

• Used farm equipment posted a 12.6% YOY auction value increase in January, according to the Sandhills EVI. Asking values also continued an upward trend, increasing 6.8% YOY.
• Within the 10- to 25-year age group, which accounts for more than one-third of all used farm equipment in Sandhills marketplaces, asking values increased 18.7% YOY. • Compared to the 0- to 10-year age group, where farm equipment inventory levels declined 48% YOY on average, the 10- to 25-year age group experienced significantly less inventory decline, down 19.4% YOY.

Obtain the Full Report

For more information, or to receive detailed analysis from Sandhills Global, contact us at [email protected].

About the Sandhills Equipment Value Index

The Sandhills Equipment Value Index (EVI) is a principal gauge of the estimated market values of used assets—both currently and over time—across the construction, agricultural, and commercial trucking industries represented by Sandhills Global marketplaces, including AuctionTime.com, TractorHouse.com, MachineryTrader.com, TruckPaper.com, and other industry-specific equipment platforms. Powered by FleetEvaluator, Sandhills’ proprietary asset valuation tool, Sandhills EVI provides useful insights into the ever-changing supply-and-demand conditions for each industry.