Used equipment prices are on the rise—and likely to accelerate during 2011 as the US and global economies improve, rental companies start to turn over aging fleets and demand for new equipment outstrips supply.
That’s the view of on-line used equipment sellers Iron Planet CEO Greg Owens in a presentation at ConExpo-Con/Agg 2011 this week.
“Used equipment prices have generally been going up since the lows of 2008-2009,” Ownes said. “They went up in 2010 across the board – although some equipment types did better than others.We are continuing to see strong support for used equipment and demand is increasing; not hugely, but it is increasing.”
Owens said there were a number of drivers for this, including the fact that rental fleets are starting to age because companies have deferred replacement purchases – but now need to renew them.
“Original equipment manufacturers (OEMs) have cut production over the past three years, so there is now a lack of supply of new equipment and delivery times have started rising.”
Despite the recession in the US and Europe, Owens said that Iron Planet – which counts Cat, Komatsu and Volvo as strategic investors – had managed to keep growing over the past three years, thanks to its operating in a global marketplace and its business model of frequent online auctions backed by its IronClad Assurance guarantee of a machine’s condition.