Used Equipment Values Dip in June, Suggesting Economic Wariness

Value of construction equipment on the resale and auction markets dipped in June, suggesting some in the industry are wary of how long the U.S. can dodge an economic slowdown.

EquipmentWatch’s August Market Report suggests the concern is present despite the backlog of infrastructure projects increasing three consecutive months to the highest amount in three years.

The monthly report from EquipmentWatch is designed as a resource to help fleet managers make better-informed decisions by leveraging equipment values, age, and usage metrics when considering the sale, auction, or purchase of equipment. 

According to the August report, construction equipment fair market values have dipped 4.34% since January, and the forced liquidation value (FLV) is down 10.10% for the same period. 

The FLV is defined as the value of an asset sold at a properly advertised and conducted auction in which the seller is under compulsion to sell on an as-is, where-is basis, as of a specific date.

EquipmentWatchThe report states that construction equipment resale values continued their slowdown with a 1.76% month-to-month decline from May to June 2023. Construction equipment values were reported as being up 0.06% from June 2022.

Values on the auction channel also continued their slowdown, dipping 3.16% month-over-month. However, the auction channel maintained a steep increase on a year-over-year analysis with a 27.82% increase in values.