We received a $366,000 TP recovery claim on this earthmoving equipment which had reportedly suffered a lightning strike event.
The used equipment market is currently experiencing a period of flux, with some sectors softening while others remain strong.
In this article, we will delve into the current state of the used equipment market, shedding light on the impact of interest rate rises, labour shortages, and fluctuating fuel prices.
The used motor vehicle market has experienced a decline for over a year, with average prices falling by about 15% from their peak in April 2022. However, it's essential to note that prices are still considerably higher than pre-COVID levels.
This decline is primarily attributed to increased interest rates, inflation, and cost of living pressures. Additionally, there has been an increase in the number of new vehicles coming into Australia, which has had a flow-on effect on used vehicle prices.
The industrial sectors of the used equipment market are experiencing mixed results.
The market for trucks, trailers, and transport equipment is influenced by factors such as driver shortages, supply lead times, and fuel prices. Late-model Kenworth and Volvo prime movers are in high demand if available, and flat-deck trailers are selling well due to regulatory changes and driver preferences. Tippers and dogs can be erratic but remain strong, especially with certain mileage thresholds. Specialised equipment, such as fuel transport and garbage trucks, still command a premium.
The construction equipment market is influenced by exchange rates, infrastructure projects, labour shortages, and supply chain disruptions. While older equipment is softening in value, graders, dozers, and loaders of all sizes remain strong. Mobile cranes continue to hold steady, with supply anticipated to increase this year as older operators leave the industry.
Agricultural equipment's performance is tied to factors such as weather conditions, exchange rates, and OEM supply. Import volumes increased, and tractors, particularly those with 200+ horsepower, are in high demand. Certain equipment, such as grain trailers and corporate farming machinery, continues to see demand.
In the mining sector, challenges include supply chain disruptions and rising manufacturing costs. New equipment lead times have expanded significantly, resulting in price increases. Labour shortages continue to pose challenges, and demand for large dump trucks remains strong.
The mid-year update for the used equipment market in 2023 paints a complex picture of resilience and change.
While certain asset categories experience softening prices due to various challenges, others remain strong and continue to command premium values. ARC Assessing remains committed to providing valuable insights to help businesses navigate these dynamic market conditions.
Stay tuned for further updates as we continue to monitor and assess the evolving landscape.
We received a $366,000 TP recovery claim on this earthmoving equipment which had reportedly suffered a lightning strike event.
The repair estimate received with this lightning strike claim, due to a severe weather event, was just over $130,000.
We received a claim on this unit which had suffered an operator error event, resulting in impact damage to its cabin and boom.
