According to Equipment Watch via Randall Reilly, economists predicted that construction activity would be high in 2022. State and local governments are still using funds from the American Rescue Plan, and projects funded by the historic Infrastructure Investment and Jobs Act (IIJA) are expected to break ground later in the year. This slight uptick in resale activity may be a reflection of the fact that firms are seeing increased activity and ramping up for the disbursement of IIJA funds.
What this means for the buyer and/or seller:
- Expect to wait longer for new equipment availability
- Expect to pay up to 15% premiums above sticker price on new equipment
- Expect to pay higher than normal pricing for older equipment
- Expect that used options will be minimal as inventories will continue to diminish
- Expect the used options will be older and have more hours