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OLVs and FLVs Continue Downward Trend, Rouse Rental Report

July 05, 2016, 07:08 AM
Filed Under: Rental News

The May 2016 Rouse Value Index for used equipment prices decreased to 42.7, down 1.2% from April values. The decrease is the thirteenth consecutive month of declines. The May value is down 8.9% from the mid-2015 peak of 46.9, and is below the April 2007 peak of 45.5. However, the May 2016 Rouse Value Index remains 43.9% higher than the prior trough period of 29.7 in June 2009. The Rouse Value Index measures the average Orderly Liquidation Values for benchmark models across fourteen major rental category indices on a monthly basis.

May auction sales of rental and construction equipment tracked by Rouse averaged 7.4% lower than Rouse April FLV values. Units sold in May (~4,100 units sold at ~50 separate auction sales) represented a combined FLV (as of April 30th) of $124.6 million and generated $115.3 million of gross auction proceeds. Categories of equipment prevalent in general rental fleets (e.g., small- and mid-sized earth moving and aerial equipment) averaged 9.0% lower than April FLV values. Heavier equipment categories (e.g., large earth moving and mining equipment) averaged 5.7% lower than April FLV values.

During March, achieved rental rates as measured by the Rouse Rate Index decreased 0.4% on average for the rental companies participating in the Rouse Analytics Rental Metrics Benchmark Service. Rates are down 0.7% relative to March 2015 and up 24.1% relative to January 2011. March physical utilization is up 1.6% from February.

Read the full June 2016 Rouse Rental Report.

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