The current Covid19 situation has forced many companies to cut down on their capital costs, thereby increasing the demand for Used Equipment and Machinery.
Current Trends and Demands
- 1) Recycling Equipment & Machinery is estimated to be around 6% CAGR from 2019 to 2026, as per Global Market Insights Due to granular structure of the industry players are offering are strategically investing into enhancing their capacities across the globe to meet consumer demand
- 2) In the Construction Industry
- Mordor Intelligence quotes that the Europe Used Construction Machinery Market is anticipated to register a CAGR of about 3.98% during the forecast period (2020 – 2025). This is due to economic uncertainty and increasing costs of purchasing new equipment. Domestic and local businesses contribute towards the 60% of the market.
- Dennis Howard, RDO Equipment VP said that the Used Equipment market especially has seen a increase from technology growth perspective , with more machines already equipped with options such as GPS machine control, which hit the used market last year. This is a trend that will continue to expand in 2020
- 3) Gordon Brothers stated that the value of used metalworking Equipment decreased from 10 to 30% year over year, depending on the type and vintage
- 4) Ritchie Bros in-house data and trend analysis team saw relative price strength across all the geographies Ritchie Bros. operates in as buyers have quickly adopted fully-online purchasing
- 5) Greg Peterson, founder of Machinery Pete stated in an article that to help farmers adopt the online bidding even easier, auction companies have waived buyer’s premiums
- Sale of Second Hand Home gym equipment and other fitness products have increased as people are unable to hit the gyms due to social distancing norms.
- Refurbished equipment in food and beverage industry can save companies in the ballpark of 50%, United Food and Beverage’s Sanders says. A per an article, EquipNet’s Medicino estimates a savings of $50,000 to $300,000, depending on the OEM and the overall capabilities of the machine
- Improving sales of Used Agricultural Equipment for the period ended June 30, 2020, helped push many dealerships to a year-over-year gain of 9.9%
- A survey conducted by Evercore ISI stated that Used-equipment inventory sales increased again at its highest level since the 2009
- Participation in Online bidding has gone up.
Points to watch out.
Trends and claims and updates will be coming out regularly but to predict whether those predictions and trending activities will be long lasting or just mere change for momentary speck. And to have an overview for the same we need to look out for points like.
- Industry Outlook and Demand
As per the many economic experts it will take some more time to get the world economy and transportation to get back to track. As demand tends to remains low for equipment. While cautiously optimistic, the investment of brand-new machines isn’t one many companies are in position to make. Which makes an opportunity for Used Equipment
- Low New Inventory
Considering that after the lockdowns’ are lifted up and the demand for equipment to take on work is high, the supply of new machines won’t be able to meet the demand. As the demand will be low and many of the specialized pieces and component manufacturers were downsized, further slowing the pace of new machine production. This is yet another factor that’s making the used equipment outlook very positive.
- Rental Fleets
Rental equipment offers similar advantages as used equipment does against new, so to keep up with demand for rental machines many dealerships, have grown their rental fleets. This will created more availability of used machines.
Subscribe to our News Letter