Tariffs and rising equipment costs topped the list of heavy equipment dealers’ top concerns for this year, according to a new survey from EquipmentWatch.
The 2025 Dealer Insights Report found dealers facing pressure on multiple fronts, including rising equipment costs, tariff instability, slower customer decisions and disconnected technology. The survey was conducted with 160 verified North American dealerships in April-May.
Tariff uncertainty was the biggest economic disruptor for dealers in 2025, cited by 70% of respondents. That beat both rising equipment costs (66.3%) and financing challenges (49.1%).
As a result, overall dealer sentiment is low. The majority of dealers describe their 2025 equipment market outlook as “concerned” or “very concerned,” and only 36% remain cautiously optimistic.
Contractors delaying purchases represents another hurdle dealers are facing. Nearly three-quarters of responding dealers believe that economic pressure will cause buyers to pause equipment purchases, signaling a projected slowdown in replacement cycles and longer equipment life spans on customer lots.
Customers delaying purchases due to high costs (38%) and excess inventory tying up capital (30.1%) were the two most selected options among dealers feeling the effects of equipment surpluses.
Among technologies equipment dealers are interested in implementing down the line, 45% of respondents chose AI-driven pricing and valuation tools. This surpassed both CRM (customer relationship management) software at 34.4% and automated lead generation tools at 33.7%.
Other data points from the report include:
- 38% of dealers say rentals are cutting into sales.
- 33% report expanding rental fleets to meet demand.
- Nearly 50% cite poor system integration as their top tech frustration.
- 34% of dealers say better-qualified leads would have the biggest day-to-day impact.
- 70% of dealers say recent sales came from existing customers.
- One in three dealers says they’re seeing more tire-kickers and fewer serious buyers.
To download the full report for free, click here.
EquipmentWatch is owned by Fusable (formerly Randall Reilly), parent of Equipment World. For more than 60 years, it has served contractors, equipment manufacturers, dealers, rental companies, lenders, insurers and government agencies in heavy civil construction. EquipmentWatch owns The Rental Rate Blue Book.
