TheTrucker.com

Inventory increases recorded across heavy duty equipment marketplaces

Reading Time: 3 minutes
Inventory increases recorded across heavy duty equipment marketplaces
The newest report from Sandhill Global shows increases in truck and trailer inventory levels as of May. 

LINCOLN, Neb. — A new report from Sandhills Global shows that the April uptick across their heavy-duty truck, semitrailer, agricultural equipment and heavy construction machinery marketplaces increased in May.

According to a news release, truck and trailer inventory levels, for example, increased by double digits in May while inventory levels in several construction and farm equipment categories increased between 4% and 9%.

When rising inventory level trends occur, auction value decreases usually follow, Sandhills official noted.  Sandhills has observed auction value decreases in several categories ranging from 2% to 9% month over month from April to May.

“Sandhills’ market reports are showing clear trends that sellers would be wise to track,” said Sales Manager Mitch Helman. “Truck, trailer, and construction equipment sellers, in particular, should pay close attention to the market as inventory levels are up and values are heading lower.”

The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI).

Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets as well as model year equipment actively in use.

Additional market report takeaways

Sandhills market reports highlight the most significant changes in Sandhills’ used heavy-duty truck, semitrailer, farm machinery and construction equipment markets. Key points from the current reports are listed below.

U.S. used heavy-duty trucks

Inventory levels increased by double digits in May while values continue to fall. The day cab category led the way with the steepest value declines and the highest inventory level increase. Inventories rose 11.48% month-over-month following consecutive months of increases and were 33.24% higher year over year.

Asking and auction values have decreased for a few months in a row. Asking values were down 2.69% month-over-month and 22.54% year-over-year in May, while auction values decreased 4.62% month-over-month and 27.67% year-over-year. Sandhills expects value trends will continue moving lower.

U.S. used semi-trailers

Inventory levels have increased for several consecutive months and were up 14.63% month-over-month and 41.49% year-over-year in May. The dry van trailer category showed the largest increases. Both the dry van and reefer semitrailer categories are following the inventory trends seen in used heavy-duty trucks. Sandhills expects inventory trends to continue rising.

Like heavy-duty trucks, values for used semitrailers have experienced months of decreases. Asking values declined 4.58% month-over-month and 25.59% year-over-year in May, while auction values fell 6.09% month-over-month and 30.12% year-over-year. A continued softening in values is expected.

U.S. used medium-duty trucks

Inventory levels have been increasing since the start of 2023. Inventories increased 9.39% month-over-month and 20.25% year-over-year in May.

Auction and asking values decreased by 2% to 3% each month since January. In May, asking values increased 0.61% month-over-month, decreased 9.89% year-over-year and are currently trending down. Following consecutive months of decreases, auction values were down 1.99% month-over-month and 15.46% year-over-year. Sandhills expects medium-duty truck values to remain lower than they were in 2022.

U.S. used heavy-duty construction equipment

Inventory levels have been holding steady since last year but recently started to increase. Dozers, excavators, and wheel loaders all posted their largest inventory levels of 2023 in May. Inventories increased 2.87% month-over-month, rose 2.83% year-over-year and are currently trending up.

Asking and auction values continue to ease as all heavy-duty construction equipment values are lower than last year. Asking values increased 0.5% month-over-month, decreased 4.04% year-over-year and are currently trending down. Auction values decreased slightly month-over-month at 0.23% and dropped 5.88% year-over-year following consecutive months of decreases.

U.S. used farm equipment

Inventory levels continue to climb and trend upward following several months of increases and double-digit year-over-year growth. Inventories increased 3.58% month-over-month and 29.81% year-over-year in May. Tractors over 300 HP showed a nearly 10% month-over-month increase.

Asking values have held steady for a few months while auction values have decreased. Asking values remained nearly flat month-over-month in May, decreasing 0.04% and are currently trending sideways, but they were up 9.03% year-over-year. Auction values decreased 3.78% month-over-month and are currently trending sideways but they were 2.59% higher year-over-year.

The largest month-over-month auction value decreases were seen in the higher-class combine category.

The Trucker News Staff

The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.

Avatar for The Trucker News Staff
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
For over 30 years, the objective of The Trucker editorial team has been to produce content focused on truck drivers that is relevant, objective and engaging. After reading this article, feel free to leave a comment about this article or the topics covered in this article for the author or the other readers to enjoy. Let them know what you think! We always enjoy hearing from our readers.

COMMENT ON THIS ARTICLE