News

Equipment Values Continue to Increase Even as Used Inventory Levels Begin to Stabilize After Historic Declines

Following months of inventory declines across the farm machinery, construction equipment, and heavy-duty truck markets, a new Sandhills Global Market Report signals the potential stabilization of inventory levels in key market segments. Inventory levels for heavy-duty sleeper cabs showed the first increase in 13 months, for example, while dozer inventory displayed flattening levels after steady declines since April 2020. Inventory levels were also up for 300-plus-horsepower tractors, an asset category that had previously been in inventory decline since January 2020.

The Sandhills Equipment Value Index (EVI) shows that this flattening of the inventory curve has not put a damper on used equipment values, which continue to increase year-over-year in many asset categories. Buyers and sellers can use the information in Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions.

Chart Takeaways

Sandhills Market Reports highlight the most significant changes in the used equipment and truck markets. Each report includes detailed analysis and charts that help readers visualize the data. The latest report reveals upward trends in both asking and auction values when compared to last year. In the construction machinery and farm equipment markets, the YOY equipment values are entering a comparison timeframe against the start of 2020’s dramatic inventory reduction and upward equipment value trends. As a result, YOY variance is flattening in some asset categories and is likely to soon to be seen across other equipment industry categories.

U.S. Used Heavy-Duty Trucks

• The Sandhills EVI for heavy duty trucks shows a 51.7% YOY auction value increase in June, and asking values are also trending upward with 26.2% YOY gain.
• The sleeper truck market remains robust; auction values posted a 70.5% YOY gain in June versus a 61.9% YOY increase in May. Asking values also increased compared to the previous month, rising 38.1% YOY in June versus the 25% YOY in May.

U.S. Used Heavy-Duty Construction Equipment

• Sandhills EVI logged an 18.7% YOY auction value increase and a 12% YOY asking value increase for construction equipment. These improvements are flat when compared to YOY value increases in May.
• Even amid flattening inventory levels, auction values for dozers are still growing, up 18.8% YOY, while the asking value improved 9.7% YOY.

U.S. Used Agriculture Equipment

• The Sandhills EVI for the farm equipment market (comprising tractors in the 100-plus-horsepower category and combines) charted a 13.5% YOY auction value increase, up slightly from the 13.1% value increase in May. Asking values for ag equipment were up 7.9% YOY, and while still positive, the YOY variance in Sandhills EVI asking values marked the second month-over-month decrease.
• Auction values for 300-plus-horsepower tractors were up 10% YOY. Sandhills EVI asking values for the same category were up 4.3% 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.