Equipment sale prices continue to tick upward with compact leading the way: Ritchie Bros.
The November Market Trends Report from Ritchie Bros. has seen small increases in sale prices for large and medium earthmoving equipment in Canada through the third quarter of 2022 compared to the same period in 2021, while compact earthmoving machinery is showing steady strength both sides of the border.
Compact equipment continues to be popular, as indicated in U.S. excavator sales, Ritchie Bros. notes, where large unit volumes are down significantly in 2022 compared to increasing mini excavator sales.
"We have been selling construction equipment for than 60 years and compact equipment has never been more popular," said Doug Olive, Senior Vice President, Ritchie Bros. "Today, manufacturers make small and medium earthmoving equipment so much more powerful, and as a result we are seeing a lot more compact items on jobsites around the world and at our auctions. However, there are still many jobs that require the full power of a Cat D11T or John Deere 870G - so don't worry, big equipment still has a big role to play."
The United States has seen volume drop but prices rise on large excavators, and Canada has seen a similar move; at the same time, both volumes and prices for mini excavators have moved upwards in 2022.
When reviewing wheel loaders and dozers, similar trends are apparent. In the US., both categories saw declines in price through Q3 while loader backhoes and skid steer loaders have seen increased prices. Canada, with smaller overall volumes, saw pricing for dozers and wheel loaders show a slight uptick through the year, while SSLs and similar compact gear have seen higher increases.
"Used small and medium earthmoving equipment volumes sold through dealers and other retail channels were down almost 40 percent vs the prior year, while prices continued to rise, increasing a further 2% in October," added Doug Rusch, Managing Director of Rouse Sales. "Used earthmoving equipment trading through retail channels is now selling for 33 percent more than pre-pandemic levels."
According to industry indexes, pricing has increased over the same time last year, though month over month is declining compared to peak prices earlier this year.
In Canada, Ritchie Bros.' mix-adjusted price indexes for the three months ending October 31, 2022, show truck tractor prices are up approximately 13 percent compared to the same time period last year, and flat compared to the three months ending December 31, 2021. Meanwhile, large and medium earthmoving equipment prices are currently up 9 and 6 percent respectively compared to the same time period last year, however that is down 7 and 2 percent compared the three months ending December 31, 2021. Vocational trucks are up 5 percent YOY (flat compared to Dec. 2021) and aerial up 2 percent (down 2 percent since Dec. 2021).
In the United States, Ritchie Bros.' mix-adjusted price indexes for the three months ending October 31, 2022, show truck tractor prices are up approximately 2 percent compared to the same time period last year, but down 13 percent compared to the three months ending December 31, 2021. Meanwhile, large and medium earthmoving equipment prices are currently up 4 and 2 percent respectively compared to the same time period last year, however that is down 1 and 6 percent compared the three months ending December 31, 2021. Vocational trucks are up 1 percent YOY (down 7 percent since Dec. 2021) and aerial up 2 percent (down 5 percent since Dec. 2021).
