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Inventory Increases, Values Heading Lower Across Marketplaces, Sandhills Global Reports

June 07, 2023, 07:18 AM
Filed Under: Equipment News

Sandhills Global previously reported inventory increases occurring in April across Sandhills’ heavy-duty truck, semitrailer, agricultural equipment, and heavy construction machinery marketplaces. Those trends accelerated in May. Truck and trailer inventory levels, for example, increased by double digits in May while inventory levels in several construction and farm equipment categories increased between 4 percent and 9 percent. When rising inventory level trends occur, auction value decreases usually follow. In fact, Sandhills has observed auction value decreases in several categories ranging from 2 percent to 9 percent month over month from April to May.

“Sandhills’ market reports are showing clear trends that sellers would be wise to track,” said Sales Manager Mitch Helman. “Truck, trailer, and construction equipment sellers, in particular, should pay close attention to the market as inventory levels are up and values are heading lower.”

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 as well as 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 Heavy-Duty Trucks

  • Inventory levels increased by double digits in May while values continue to fall. The day cab category led the way with the steepest value declines and the highest inventory level increase. Inventories rose 11.48 percent M/M following consecutive months of increases and were 33.24 percent higher year over year.
  • Asking and auction values have decreased for a few months in a row. Asking values were down 2.69 percent M/M and 22.54 percent Y/Y in May, while auction values decreased 4.62 percent M/M and 27.67 percent Y/Y. Sandhills expects value trends will continue moving lower.

U.S. Used Semitrailers

  • Inventory levels have increased for several consecutive months and were up 14.63 percent M/M and 41.49 percent Y/Y in May. The dry van trailer category showed the largest increases. Both the dry van and reefer semitrailer categories are following the inventory trends seen in used heavy-duty trucks. Sandhills expects inventory trends to continue rising.
  • Like heavy-duty trucks, values for used semitrailers have experienced months of decreases. Asking values declined 4.58 percent M/M and 25.59 percent Y/Y in May, while auction values fell 6.09 percent M/M and 30.12 percent Y/Y. A continued softening in values is expected.

U.S. Used Medium-Duty Trucks

  • Inventory levels have been increasing since the start of 2023. Inventories increased 9.39 percent M/M and 20.25 percent Y/Y in May.
  • Auction and asking values decreased by 2 percent to 3 percent each month since January. In May, asking values increased 0.61 percent M/M, decreased 9.89 percent Y/Y, and are currently trending down. Following consecutive months of decreases, auction values were down 1.99 percent M/M and 15.46 percent Y/Y. Sandhills expects medium-duty truck values to remain lower than they were in 2022.

U.S. Used Heavy-Duty Construction Equipment

  • Inventory levels have been holding steady since last year but recently started to increase. Dozers, excavators, and wheel loaders all posted their largest inventory levels of 2023 in May. Inventories increased 2.87 percent M/M, rose 2.83 percent Y/Y, and are currently trending up.
  • Asking and auction values continue to ease as all heavy-duty construction equipment values are lower than last year. Asking values increased 0.5 percent M/M, decreased 4.04 percent Y/Y, and are currently trending down. Auction values decreased slightly M/M at 0.23 percent and dropped 5.88 percent Y/Y following consecutive months of decreases.

U.S. Used Medium-Duty Construction Equipment

  • Inventory levels have been trending upward since the start of 2023 but totals piled up quicker in May, increasing 6.62 percent M/M and 38.91 percent Y/Y. Track and wheel skid steer inventories are increasing faster than other used medium-duty construction equipment categories. Inventory level changes are putting pressure on auction and asking values, especially in the skid steer category. Sandhills looks for these trends to continue.
  • Both asking and auction values have decreased over the past few months. Asking values were down 0.70 percent M/M and 1.66 percent Y/Y while auction values decreased 0.87 percent M/M and 6.06 percent Y/Y in May.

U.S. Used Farm Equipment

  • Inventory levels continue to climb and trend upward following several months of increases and double-digit Y/Y growth. Inventories increased 3.58 percent M/M and 29.81 percent Y/Y in May. Tractors over 300 HP showed a nearly 10 percent M/M increase.
  • Asking values have held steady for a few months while auction values have decreased. Asking values remained nearly flat M/M in May, decreasing 0.04 percent, and are currently trending sideways, but they were up 9.03 percent Y/Y. Auction values decreased 3.78 percent M/M and are currently trending sideways, but they were 2.59 percent higher Y/Y. The largest M/M auction value decreases were seen in the higher-class combine category.

U.S. Used Compact and Utility Tractors

  • Inventory levels moved up in May after seasonal declines in April. Inventories increased 3.47 percent M/M and 71.64 percent Y/Y and are currently trending up. The 40- to 99-horsepower tractor category showed the greatest M/M inventory rise.
  • Asking and auction values peaked in 2022 and have shown signs of easing since then. Auction values are lower than they were a year ago, with asking values likely to follow. Asking values increased 0.22 percent M/M and are currently trending down. However, asking values were up 2.91 percent Y/Y. Auction values decreased 0.66 percent M/M and are currently trending down, while auction values were 1.55 percent lower Y/Y.

Obtain the Full Reports

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