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Report: Prices soar as demand rises for used equipment

Soaring demand for used equipment has caused unprecedented price rises in the transport, construction, agricultural and mining assets sectors in 2021.

That’s according to Ritchie Bros. Market Trends Report 2021/2022. The global auction house says the research uses expertise, voices from the field, and national industry-led data to shed light on current perceptions and challenges facing the equipment market.

Ritchie Bros. spoke with industry leaders at Brown & Hurley, Civil Contractors Federation Victoria, Agforce, Tractors Machinery Association of Australia, The Institute of Quarrying, ARITA, and the Gordon Brothers and Ritchie Bros. Alliance to gain insight into the current climate.

“Supply chain issues, tight supply, and unprecedented demand all played major factors in used sales last year,” said Ritchie Bros. APAC sales director, Finlay Massey.

“In Australia, volumes were up in most asset categories including trucks, trailers, tractors, harvesters, cranes, and earthmoving gear, while prices rose significantly.

“Disruptions caused by Covid-19, both in Australia and globally, including factory shutdowns, shipping delays, regional lockdowns, and border restrictions as well as local and global supply chain material shortages have put pressure on OEMs. Due to an increasing demand on the transport sector and an overall freight necessity that has remained solid throughout the pandemic, drought breaking rains leading to bumper crops and harvests and a housing boom driven by substantial government incentives, the need for used equipment and trucks drove strong demand throughout 2021.

“A record number of bidders (over 34,900 in 2021, up 101 per cent on 2020 and over 1.1 million web users, an increase of 85 per cent on 2020 figures, resulted in the strongest equipment pricing we have ever seen. Prime mover pricing over the past year was up 48 per cent on 2020, while medium earthmoving, tractor, and crane median prices are up 17 per cent, 19 per cent, and 136 per cent respectively.”

Massey adds that the past year was a record one for Ritchie Bros. “Positive price trends across all sectors were reported, while Ritchie Bros. set new records for total sales, registered users, bids per item, and overall sales prices. It remains a seller’s market in 2022 and consignors across Australia are taking advantage by turning their surplus assets into cash.

“With billions of dollars of equipment transacting via our multiple global sales channels each year, only Ritchie Bros. has the data that gives us unmatched insight into market trends around the world. In fact, we transact so much equipment that we’re often cited as one of the main data sources in leading industry reports.”

To view the full report, please click here.

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