February 07, 2017

Used Heavy Equipment - IronPlanet February Auction Shortened by One Day

By Jarrett Harris
The reduction of IronPlanet's February Florida auction from a five-day to a four-day event is likely evidence of the tightening supply in the used construction equipment market and end-user preference shifting away from auctioneers.

Sources interviewed for OTR Global's Jan. 20 Used Heavy Equipment report said an uptick in demand and increasing optimism during the prior 90-day period fueled tighter supply of used construction equipment than many had expected in October. U.S. used equipment dealers projected a 7%-12% decline in the volume of equipment they'd take to auction during 2017 yy, as Caterpillar Inc. dealers projected fewer consignments. Many said the incentives present in 2016 will likely cease with Ritchie Bros. Auctioneers Inc.'s acquisition of IronPlanet Inc. As a result, sources expected IronPlanet's "CAT Auction Services" branded live event to be significantly smaller yy. The company's website indicates the auction has moved from a five-day event to a four-day event.

Here is how the event was originally billed: 

Here is how the event is now being billed: 

Sources interviewed in January expected the Ritchie Auction to fare slightly better -- most projected Ritchie's landmark February event to be flat yy. But the cut in IronPlanet's auction from five days to four is a testament to the suddenness of equipment supply tightening and supports the challenging environment for auctioneers OTR Global reported in January.

As a point of context, IronPlanet's 2016 Florida auction was a five-day event that grew 95% yy in "gross merchandise volume," according to the company's website.

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