November 2, 2021

CAT, RBA, 6301 JP, AHT LN, DE, KMTUY, URI

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Sources and Background

16 sources, comprising used construction/mining equipment specialists, representing more than $923 million in annual sales
REPEAT SOURCES 11 from OTR Global’s July report
INTERVIEWS October 19-27
AVERAGES Weighted according to each source’s annual used equipment sales volumes in dollars

Equipment Well Running Dry
As the used equipment market continued to tighten, prices have continued to increase and more equipment has been flowing through dealers, leaving auction houses with less inventory.

  • Used supply tightens for fifth consecutive quarter; used inventories during past 90 days insufficient for 15 of 16 sources (vs. 13 of 15 in July); parts shortages emerging
  • Used pricing up 12%–15% yy during past 90 days, exceeding July expectations as prolonged new equipment shortage drives even more buyers to used market
  • Dealers gained share (reported by 8 of 16 sources) as auctioneers lost (6 of 16), benefiting from proximity to rental, lease returns as less equipment flows through auctions; dealer sales up 21%–24% yy (similar to July)
  • Area to Watch: RBA auction volumes mostly stable but equipment quality deteriorating because of tight supply; similar dynamics anticipated in 2022
Jarrett Harris
Cyclicals