Lack of production of new equipment leads to a decline in used equipment of late models

Sandhills’ latest market report details how average inventory levels in 2021 compare to historical trends in Sandhills’ used heavy-duty truck, construction equipment and agricultural machinery markets.

The key metric used in all Sandhills market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use information from the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. For 2022, Sandhills has improved its EVI with new metrics. The data now includes actively used model year equipment, increasing the population of used equipment beyond that available in the auction and retail markets. New EVI data, already available for United Statesis also now available for Canada to better reflect machine values ​​by location. The enhanced version of Sandhills EVI requires Sandhills to reformulate the values ​​from January 2022so the previous numbers will not be comparable to the new, more relevant values.

Chart to remember
Sandhills Market Reports highlight the most significant changes in Sandhills’ used heavy truck, construction equipment and agricultural machinery markets. Each report includes detailed analysis and charts that help readers visualize the data. Industry-specific inventory statistics in this report are supplemented with historical inventory levels for the recent model age group (0-5 years), which helps quantify the impact of lower the production of new equipment on the number of late-model machines reaching the second-hand market.

Used Heavy Trucks in USA

• The Sandhills EVI finds that used heavy truck inventory levels across all age groups were down 58.5% year-over-year between January 2021 and January 2022.
• From 2017 to 2020, inventory levels of late-model used heavy-duty trucks averaged between 10,000 and 12,000 per year.
• In 2021, inventory levels of used late model trucks averaged less than 5,000 units; this illustrates how the slow production of new trucks has had a major impact on the used truck market.

Used Heavy Duty Construction Equipment in USA

• Used heavy construction equipment inventory levels are down 42.5% year-on-year. This figure includes crawler excavators, bulldozers and wheel loaders of all age groups.
• From 2017 to 2020, inventory levels for late model construction equipment averaged between 8,000 and 9,000 machines per year.
• With inventory levels averaging around 7,000 in 2021, late model construction equipment is down significantly from previous years.

Used Farm Equipment in USA

• Used farm equipment inventory levels were down 37.4% year-over-year from January 2021 for January 2022. This figure includes tractors over 100 horsepower and combines of all age groups.
• From 2017 to 2020, average inventory levels for late model farm equipment have hovered between 7,000 and 10,000 machines per year.
• In 2021, inventory levels for the same age group averaged around 4,000 machines.

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About Sandhills Global
Sandhills Global is an information processing company headquartered in Lincoln, Nebraska. Our products and services collect, process and distribute information in the form of trade publications, websites and online services that connect buyers and sellers in the construction, agriculture, forestry, oil and gas, heavy equipment, commercial trucking and aviation. Our integrated, industry-specific approach to hosted technologies and services delivers solutions that help businesses large and small operate efficiently and grow securely, profitably and successfully. Sandhills Global—we are the cloud.

About the Sandhills Equipment Value Index
The Sandhills Equipment Value Index (EVI) is a primary indicator of the estimated market values ​​of used assets – both currently and over time – in the construction, agriculture and trucking industries trading represented by Sandhills Global Markets, including AuctionTime.com, TractorHouse.com, MachineryTrader.co.uk, TruckPaper.com, and other industry-specific equipment platforms. Powered by FleetEvaluatorSandhills’ proprietary asset valuation tool, Sandhills EVI provides insight into the ever-changing supply and demand conditions for every industry.

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