Market Trends

Analyzing Trends in Used Farm Equipment: A Comprehensive Report from Sandhills Global

LINCOLN, Neb., April 5, 2024 – Sandhills Global has witnessed a marked escalation in inventories of late-model used farm machinery in their trading platforms over the last year. This development is noteworthy as equipment manufacturers restore normal production levels after overcoming numerous supply chain hindrances. Sandhills Global’s insights extend beyond the agricultural sector into the realms of construction and transportation markets, where similar patterns have emerged.

Ryan Dolezal, the Sales Manager at TractorHouse, underscores a dramatic downturn in planter auction values. He highlights that these late-model units are now trading at 10 to 20 percent lower than the preceding month's rates. This recent trend suggests that forthcoming asking prices may align with these reduced auction values, flagging an emergent shift in market dynamics.

The cornerstone of Sandhills' market reports is the Sandhills Equipment Value Index (EVI), designed to empower buyers and sellers to keep a pulse on equipment markets. This vital metric provides actionable insights to optimize decisions around asset acquisition, liquidation, and related business strategy. The EVI data encompasses equipment accessible in both auction and retail markets, as well as model-year equipment actively utilized across industries.

Insights from Sandhills Market Reports

The latest reports from Sandhills spotlight the most notable fluctuations within used heavy-duty truck, semitrailer, farm machinery, and construction equipment markets. These reports furnish a depth of insights:

• Planter inventory levels have begun to flatten out, seeing only minimal changes month-to-month. A marginal reduction of 0.24% M/M was noted in March, yet compared to the previous year, inventories were up a significant 41.66%, applying a downward force on values.

• Asking values dipped by 2.57% M/M, although they were up by 6.43% YOY, and they now seem to be on a descending trajectory.

For a visual representation of these trends, dynamic charts are available, which capture the nuances of market shifts in real-time. Images and detailed captions provide a snapshot of the current state of used equipment inventories and values with year-over-year comparisons, month-over-month changes, and trending directions. Chart 1 - Planters, Chart 2 - Combines, and Chart 3 - Tractors 100HP are just a few examples that highlight inventory and value trends across different categories.

Detailed Category Breakdowns

U.S. Used Planters

In the planter segment, an unusually high disparity between asking and auction values is noted, reaching a staggering 70% gap, unprecedented since May 2015. Auction values reflect this with a marked decline of 16.1% M/M and 15.45% YOY in March, following successive months of decreases.

U.S. Used Combines

The used combine sector is also facing challenges with inventory accumulations leading to decreased auction values. Despite a moderate M/M inventory hike of 1.72% in March, the year-over-year increase stands at 17.28%. However, asking values have maintained stability, experiencing a slight downward adjustment of 0.29% M/M but increasing by 7.9% YOY. This steadiness is likely to waver as auction values continue to drop.

U.S. Used Tractors 100 Horsepower and Greater

In this tractor category, inventory swelled by 2.5% M/M and 53.61% YOY, which has, for several months, exerted downward pressure on values. Away from the auction scene, asking values showed a moderate retreat of 0.76% M/M in March, though they spiked by 5.11% when compared with YOY figures, settling into a lateral pattern.

U.S. Used Compact and Utility Tractors

A different movement is evident among compact and utility tractors, with inventory decreasing by 3.75% M/M. That said, inventory volumes are still loading over last year's numbers by 17.66% as of March. The settling flow of asking values shows a minor decline by 0.77% M/M and a more pronounced slump of 2.37% YOY.

U.S. Used Heavy-Duty Trucks

The heavy-duty truck sector, encompassing day cabs and sleeper trucks, has seen a leap in inventory of 7.19% M/M and 14.38% YOY, moving horizontally in trend. Asking values experienced a small uptick of 0.61% M/M within March’s framework, but the YOY comparison reveals a significant tumble by 16.49%, establishing a downtrend.

U.S. Used Semitrailers

This category is expanding swiftly with inventories increasing 5.07% M/M and a striking 44.83% YOY, indicating a growing glut. The situation is appropriately mirrored in dropping asking values, with a 1.33% M/M decline and a sizable 21.94% YOY dip in March, after sequential monthly falls.

U.S. Used Medium-Duty Trucks

Stepping into medium-duty trucks, the upsurge in inventory stands out starkly with a 13.88% M/M and 37.46% YOY increase in March. Despite small monthly increases, the broader perspective shows a descending flux, as asking values rose a modest 2.31% M/M but were down considerably by 12.62% YOY.

U.S. Used Heavy-Duty Construction Equipment

Here, there has been a substantial surge of 2.43% M/M and 15.59% YOY in inventory levels, signifying a continuation of upward trends. Asking values, albeit with a marginal drop of 0.71% M/M, are down 2.4% YOY, reflecting a sideways trend which coincides with auction values declining both M/M and YOY.

U.S. Used Medium-Duty Construction Equipment

An outstanding upswing characterizes this sector with a 1.33% M/M and 55.33% YOY inventory increase, denoting a significant swelling of stock. The most notable shifts have occurred in the skid steer and mini excavator classifications. Though asking values are lowering, trending sideways overall, they've dropped 0.35% M/M and rest 6.03% below last year's metrics.

U.S. Used Lifts

For the lift equipment category, inventories go upward by 2.18% M/M and 8.36% YOY for March. Towered largely by telehandler inventory boosts, this upward trend for inventory levels contrasts with the fall in asking values, which declined 2.46% M/M and are down by 6.74% YOY, indicating a decline as auction values also decrease.

Securing the Full Spectrum of Data

For an in-depth review or to procure the complete array of Sandhills Global's rigorous analyses, parties are encouraged to reach out to their customer service team.

About Sandhills Global

Nestled in the heartland of America in Lincoln, Nebraska, Sandhills Global stands tall as an information processing colossus. Their portfolio, a rich tapestry of trade publications and specialized websites, forges connections between sellers and buyers across diversified sectors such as construction, agriculture, forestry, oil and gas, heavy equipment, commercial trucking, and aviation. Their bespoke and industry-aligned technology and service solutions drive businesses to scale new heights in operational efficiency and security, all serving the purpose of fostering business growth.

Harnessing the Power of Sandhills Equipment Value Index

The Sandhills Equipment Value Index (EVI) is at the forefront, offering a real-time pulse on the estimated market values of used assets. Extending its influence across construction, agricultural, and commercial trucking industries, the EVI aggregates data from Sandhills Global's robust suite of marketplaces, including AuctionTime.com, TractorHouse.com, MachineryTrader.com, TruckPaper.com, and others. The Index is fueled by FleetEvaluator, Sandhills' proprietary valuation tool, ensuring businesses have their finger on the pulse of shifting supply-and-demand conditions.

For more insights and assistance or to harness the full potential of Sandhills Global's offerings:

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Source: Sandhills Global

This news article is crafted to embrace the evolving state of the heavy machinery marketplace, offering indispensable resources for stakeholders to make calculated and informed decisions. With comprehensive analyses, visual aids, and proactive approaches, Sandhills Global proves to be an invaluable partner in navigating the tides of the used equipment market.