Inventory Increases of Skid Steers and Other Construction Equipment Lead to Value Declines

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Jun 10, 2024, 09:43 ET

LINCOLN, Neb., June 10, 2024 /PRNewswire/ -- According to the newest Sandhills Global market reports, medium- and heavy-duty construction equipment inventory levels continue to surge in Sandhills marketplaces. Within the overall construction equipment market, inventory levels of medium-duty equipment are growing at a faster rate, led by skid steers. These inventory increases have put pressure on asking and auction values, prompting continuous month-over-month price decreases. In both markets, asking values have declined at a slower rate compared to auction values.

Inventory levels of used medium-duty construction equipment rose 2.81% M/M in May, continuing an upward trend that began in August 2022. Inventory levels were up 52.26% year over year. The used track skid steer category has led the way in inventory increases in recent months and was up 73.91% YOY. Track skid steer and mini excavator inventory levels are at or above pre-pandemic levels, while loader backhoes and wheel skid steers continue lagging behind.

As in the medium-duty construction equipment market, Sandhills has observed continued inventory increases of used heavy-duty construction equipment, although at a slower rate. Inventory in this market rose 1.47% M/M and 18.91% YOY in May and is following an upward trend. The used wheel loader category exhibited the most pronounced inventory increase with gains of 5.17% M/M and 29.13% YOY.

The used market for 100-plus-horsepower tractors in the U.S. posted a slight inventory decrease of 0.36% M/M in May, but the overall trend is upward, with a substantial 49.58% YOY increase.
Asking values dipped 0.78% lower M/M and increased 4.17% YOY. Asking values are currently trending down. — The used market for 100-plus-horsepower tractors in the U.S. posted a slight inventory decrease of 0.36% M/M in May, but the overall trend is upward, with a substantial 49.58% YOY increase. Asking values dipped 0.78% lower M/M and increased 4.17% YOY. Asking values are currently trending down.

Used planter inventory levels dropped 4.98% M/M in May and are trending downward, but inventory is still 34.03% higher than last year’s levels.
Asking values fell 6.39% M/M and are following a downward trend, yet they increased 1.97% YOY.
Auction values took a sharper drop of 11.49% M/M and are trending downward. Although asking values increased YOY, auction values fell 19.55% YOY. — Used planter inventory levels dropped 4.98% M/M in May and are trending downward, but inventory is still 34.03% higher than last year’s levels. Asking values fell 6.39% M/M and are following a downward trend, yet they increased 1.97% YOY. Auction values took a sharper drop of 11.49% M/M and are trending downward. Although asking values increased YOY, auction values fell 19.55% YOY.

Used combine inventory levels took a 1.31% M/M dip in May but posted a 12.47% YOY and is trending upward.
Asking values experienced a slight decrease of 0.7% M/M but were up 8.58% YOY and are trending up.
Auction values have been following a downward trend and posted a 3.19% M/M decline in May, but were 1.22% higher than last year’s figures. — Used combine inventory levels took a 1.31% M/M dip in May but posted a 12.47% YOY and is trending upward. Asking values experienced a slight decrease of 0.7% M/M but were up 8.58% YOY and are trending up. Auction values have been following a downward trend and posted a 3.19% M/M decline in May, but were 1.22% higher than last year’s figures.

In the U.S. used compact and utility tractor market, Sandhills noted a 3.39% M/M decrease in May, signaling a downward trend. However, inventory levels remain 7.32% higher than last May.
Asking and auction values are both trending down. Asking values decreased 1.17% M/M and 2.87% YOY in May.
After several months of decreases, auction values were down 1.72% M/M and 4.45% YOY. — In the U.S. used compact and utility tractor market, Sandhills noted a 3.39% M/M decrease in May, signaling a downward trend. However, inventory levels remain 7.32% higher than last May. Asking and auction values are both trending down. Asking values decreased 1.17% M/M and 2.87% YOY in May. After several months of decreases, auction values were down 1.72% M/M and 4.45% YOY.

Used heavy-duty truck inventory levels are on an upward trend. Levels increased 2.21% M/M and 6.29% YOY in May.
By contrast, values decreased across the board in May with significant YOY drops. Asking values fell 2.29% M/M and 17.24% YOY and have experienced months of decreases.
Auction values have also fallen for months and were down 1.11% M/M and 18.66% YOY in May. — Used heavy-duty truck inventory levels are on an upward trend. Levels increased 2.21% M/M and 6.29% YOY in May. By contrast, values decreased across the board in May with significant YOY drops. Asking values fell 2.29% M/M and 17.24% YOY and have experienced months of decreases. Auction values have also fallen for months and were down 1.11% M/M and 18.66% YOY in May.

Inventory levels of used semitrailers increased by 0.88% M/M in May, continuing a pattern of growth over successive months, and were 29.11% higher YOY. This category includes dry van, reefer, flatbed, and drop deck semitrailers.
On the other hand, values continue to plummet. Asking values remain on a downward trend, falling 1.57% M/M and 20.31% YOY in May.
Auction values decreased by 4.01% M/M, marking a trend of consistent decreases, and were 21.91% lower YOY. — Inventory levels of used semitrailers increased by 0.88% M/M in May, continuing a pattern of growth over successive months, and were 29.11% higher YOY. This category includes dry van, reefer, flatbed, and drop deck semitrailers. On the other hand, values continue to plummet. Asking values remain on a downward trend, falling 1.57% M/M and 20.31% YOY in May. Auction values decreased by 4.01% M/M, marking a trend of consistent decreases, and were 21.91% lower YOY.

Inventory levels of medium-duty trucks, including box trucks, flatbed trucks, and cab and chassis trucks, have grown consistently in the past months. Inventory was up 1.68% M/M and 32.59% YOY.
Values, however, continued a downward trend in May. Asking values decreased 0.29% M/M and 14.71% YOY.
Auction values were down 1.46% M/M and 15.7% YOY after consecutive months of decreases — Inventory levels of medium-duty trucks, including box trucks, flatbed trucks, and cab and chassis trucks, have grown consistently in the past months. Inventory was up 1.68% M/M and 32.59% YOY. Values, however, continued a downward trend in May. Asking values decreased 0.29% M/M and 14.71% YOY. Auction values were down 1.46% M/M and 15.7% YOY after consecutive months of decreases

The U.S. used lift market showed a 2.02% M/M decrease in inventory levels, but this category is on an upward trajectory. Inventory levels were 4.25% higher YOY.
Asking values increased 0.71% M/M in May but are trending downward, with a 6.9% YOY decline.
Conversely, auction values ticked downward by 1.19% M/M, continuing a pattern of consecutive decreases, and fell 13.93% YOY. — The U.S. used lift market showed a 2.02% M/M decrease in inventory levels, but this category is on an upward trajectory. Inventory levels were 4.25% higher YOY. Asking values increased 0.71% M/M in May but are trending downward, with a 6.9% YOY decline. Conversely, auction values ticked downward by 1.19% M/M, continuing a pattern of consecutive decreases, and fell 13.93% YOY.

"Inventory levels across the construction industry have been rising for months," says Director of North American Construction Stephanie Olberding. "That trend has had a negative impact on values, as the newest market reports show. Track skid steer inventory increases have been especially steep, with inventory levels exceeding pre-pandemic levels and auction values 10% lower than they were a year ago. If these trends continue, we'll expect other equipment categories to follow."

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. The Sandhills EVI data include equipment available in auction and retail markets and model-year equipment actively in use.

Additional Market Report Takeaways
Sandhills market reports highlight the most significant changes in Sandhills' used heavy-duty truck, semitrailer, farm machinery, and construction equipment markets. Key points from the current reports are listed below. Full reports are available upon request.

U.S. Used Medium-Duty Construction Equipment

Inventory levels of used medium-duty construction equipment rose 2.81% M/M in May, continuing an upward trend that began in August 2022. Inventory levels were up 52.26% year over year. The used track skid steer category has led the way in inventory increases in recent months and was up 73.91% YOY. Track skid steer and mini excavator inventory levels are at or above pre-pandemic levels, while loader backhoes and wheel skid steers continue lagging behind.
Rising inventory has put pressure on asking and auction values. Asking values declined 1.31% M/M and 6.53% YOY and are trending down.
Following consecutive months of decreases, auction values decreased 1.85% M/M and 10.75% YOY.

U.S. Used Heavy-Duty Construction Equipment

As in the medium-duty construction equipment market, Sandhills has observed continued inventory increases of used heavy-duty construction equipment, although at a slower rate. Inventory in this market rose 1.47% M/M and 18.91% YOY in May and is following an upward trend. The used wheel loader category exhibited the most pronounced inventory increase with gains of 5.17% M/M and 29.13% YOY.
Greater inventory levels have impacted values. Asking values have shown several months of decreases but were stable M/M in May. Asking values were 3.74% lower than last year.
Auction values have also shown months of decreases. In May, auction values were down 0.47% M/M and 7.9% YOY.

U.S. Used Tractors 100 Horsepower and Greater

The used market for 100-plus-horsepower tractors in the U.S. posted a slight inventory decrease of 0.36% M/M in May, but the overall trend is upward, with a substantial 49.58% YOY increase.
Asking values dipped 0.78% lower M/M and increased 4.17% YOY. Asking values are currently trending down.
Auction values fell 2.66% M/M after months of decreases and were down 2.37% YOY in May. Although asking and auction values both decreased by less than 3% M/M in the overall 100-plus-HP tractor market, Sandhills points out more significant value declines for individual models in the high-horsepower (greater than 300 HP) tractor group. An ongoing influx of newer, more technically advanced, and more expensive high-HP tractors has left a still-growing number of late-model inventory on dealers' lots. These late-model high-HP tractors depreciated at roughly 10% to 20% YOY in May.

U.S. Used Planters

Used planter inventory levels dropped 4.98% M/M in May and are trending downward, but inventory is still 34.03% higher than last year's levels.
Asking values fell 6.39% M/M and are following a downward trend, yet they increased 1.97% YOY.
Auction values took a sharper drop of 11.49% M/M and are trending downward. Although asking values increased YOY, auction values fell 19.55% YOY.

U.S. Used Combines

Used combine inventory levels took a 1.31% M/M dip in May but posted a 12.47% YOY and is trending upward.
Asking values experienced a slight decrease of 0.7% M/M but were up 8.58% YOY and are trending up.
Auction values have been following a downward trend and posted a 3.19% M/M decline in May, but were 1.22% higher than last year's figures. Despite these modest M/M value decreases, Sandhills notes that a growing number of newer, high-dollar combines is leading to increases in unsold late-model units. As a result, values for individual late-model combines are dropping at a faster rate.

U.S. Used Compact and Utility Tractors

In the U.S. used compact and utility tractor market, Sandhills noted a 3.39% M/M decrease in May, signaling a downward trend. However, inventory levels remain 7.32% higher than last May.
Asking and auction values are both trending down. Asking values decreased 1.17% M/M and 2.87% YOY in May.
After several months of decreases, auction values were down 1.72% M/M and 4.45% YOY.

U.S. Used Heavy-Duty Trucks

Used heavy-duty truck inventory levels are on an upward trend. Levels increased 2.21% M/M and 6.29% YOY in May.
By contrast, values decreased across the board in May with significant YOY drops. Asking values fell 2.29% M/M and 17.24% YOY and have experienced months of decreases.
Auction values have also fallen for months and were down 1.11% M/M and 18.66% YOY in May.

U.S. Used Semitrailers

Inventory levels of used semitrailers increased by 0.88% M/M in May, continuing a pattern of growth over successive months, and were 29.11% higher YOY. This category includes dry van, reefer, flatbed, and drop deck semitrailers.
On the other hand, values continue to plummet. Asking values remain on a downward trend, falling 1.57% M/M and 20.31% YOY in May.
Auction values decreased by 4.01% M/M, marking a trend of consistent decreases, and were 21.91% lower YOY.

U.S. Used Medium-Duty Trucks

Inventory levels of medium-duty trucks, including box trucks, flatbed trucks, and cab and chassis trucks, have grown consistently in the past months. Inventory was up 1.68% M/M and 32.59% YOY.
Values, however, continued a downward trend in May. Asking values decreased 0.29% M/M and 14.71% YOY.
Auction values were down 1.46% M/M and 15.7% YOY after consecutive months of decreases.

U.S. Used Lifts

The U.S. used lift market showed a 2.02% M/M decrease in inventory levels, but this category is on an upward trajectory. Inventory levels were 4.25% higher YOY.
Asking values increased 0.71% M/M in May but are trending downward, with a 6.9% YOY decline.
Conversely, auction values ticked downward by 1.19% M/M, continuing a pattern of consecutive decreases, and fell 13.93% YOY.

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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.

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