EquipmentWatch just rolled out it’s inaugural State of the Construction Equipment Economy report.
Following is an direct exert from the report itself, “It has been no secret that since the start of the pandemic equipment manufacturers have faced challenges similar to other industries, such as auto and commercial trucking, in terms of supply chain disruptions and getting new product to their customers in a timely manner. These trends are evident in our survey, with 56% reporting they have experienced delays in delivery of their new equipment and 53% said they have noticed a lack of availability of new equipment for purchase.
As EquipmentWatch has been reporting throughout 2021, these trends for new equipment have directly impacted the used channels, with activity for the resale channel in particular seeing declines throughout the year. Forty percent of respondents have also noticed this trend firsthand, reporting they have observed a lack of availability of used equipment for purchase. Given all of the dynamics we have mentioned that equipment owners are facing, it may not be surprising that 40% intend to purchase more new equipment, 34% intend to purchase more used equipment, and 25% intend to increase their use of rental equipment. Nearly half (46%) also report they intend to increase sales of their own equipment, which align with the trends we have been discussing thus far. Construction firms are looking to replace their equipment and expand their fleets to meet their business needs and are just waiting for the equipment market to catch up.”
General takeaways specifically to rising used equipment prices in 2022 until new inventory levels are stabilized?
- Resale prices will continue to rise
- Rental rates will continue to rise
Click below to read the entire report that covers everything from A to Z.