The used equipment market experienced heated demand and strong pricing in 2022, according to the Ritchie Bros. Annual Market Trends Report.
According to the auction house, this has resulted in many heading to the second-hand market to scale up, sell off, or restructure their operations.
Ritchie Bros. says global original equipment manufacturer (OEM) supply issues were a key driver of demand for used equipment across all sectors.
“This lack of supply led to increased demand and prices for used equipment across the world. The report found that on Australian shores, this generated greater interest in used equipment auctions, with Ritchie Bros. recording increases in registered bidders (up 42 per cent), sellers (up 9 per cent), lots sold (up 27 per cent), and buyers purchasing power (15 per cent) compared to FY21,” Ritchie Bros. revealed.
“In 2022, complete dispersals increased significantly, with market conditions motivating many Australian operators to bring forward retirement, close their business and capitalise on the strength of used equipment pricing. This was most notable in the transport sector, where a number of large industry players left the market and triggered full dispersal and retirement sales.”
The transport sector was the strongest performer and was a key reason behind Ritchie Bros. recording a second consecutive year of record growth. Sales volumes for all types of transport equipment sold across 2022 were up 37 per cent compared to 2021, including 29 per cent more trailers and 41 per cent more trucks sold than in the previous year.
Prime movers had a 22 per cent median price increase, while median prices for van and reefer trailers rose by 128 per cent.
Demand for agricultural machinery surged, especially in the first half of the year, with sales of used inventory increasing by 28 per cent on FY2021. Farmer spending confidence thrived, buoyed by strong commodity prices, near-record harvests and the Federal Government’s Temporary Full Expensing Program.
The construction sector continued to weather challenges in 2022, most notably shortages of skilled and unskilled labor, plus the rising cost of materials. Demand for construction services will remain strong across the nation, and the supply of new equipment is expected to improve somewhat in 2023, with Japan’s big three OEM suppliers of construction equipment starting to get regular stock coming through as their factories recover from Covid.
“We are delighted to see that our customers have leveraged the strength of the used equipment market to capitalise on the seller’s market. We recorded significant increases in registered bidders, sellers, lots sold, and buyers purchasing power in FY22, which is a testament to the confidence our customers have in Ritchie Bros.’ ability to operate in all markets regardless of economic conditions,” said Cody Watson, APAC sales director at Ritchie Bros.
“Looking ahead, we remain confident in our ability to navigate challenges, leveraging our global network of expertise and reach to support our customers and help them capitalise on the opportunities presented by the used equipment market,” said Mr. Watson.
The Ritchie Bros. Annual Market Trends Report can be found here.