Record demand for used transport and construction equipment

Driven by continuing global supply challenges, a report from a major auction firm has revealed record demand for used transport, construction and farming equipment in Australia.

The latest Richie Bros Market Trends Report has identified major increases in sales for used equipment during the first half of 2022, including prime movers (up 52 per cent), tractors (up 157 per cent) and construction equipment (up 10 per cent).

Demand for excavators, dozers, dump trucks, backhoes, loaders and forklifts has also increased significantly.

“Operators are turning to used assets as they are faced with 12-24 month waits on new equipment,” said Richie Bros. APAC Director, Finlay Massey. “We expect the transport industry will continue to be disrupted by significant challenges for the next 18 months, but we know the sector is buoyed by the commitment of the Australian Government through its $120 billion funding of the infrastructure investment pipeline and the instant asset write-off scheme stimulating spending.”

The significant rise in buyer demand has continued despite the difficulties of trading through the pandemic, including the increasing cost base for operators including raw materials in the construction sector. Staff shortages and absenteeism have also been acute issues.

“What we are seeing on Richie Bros auction floors is continued buoyancy despite the real economic pain being felt right now. Put simply, we have cashed-up buyers with not enough supply,” Massey added.

The transport machinery market continues to thrive despite driver shortages, record fuel prices and the return of air freight. However, operators already struggling with costs are now faced with inflation and rising interest rates, which has exacerbated financial distress for business struggling with fixed price contracts on low margins.

As a result, dispersals of complete fleets due to early retirement and business wind-ups are expected to rise through 2022 and into 2023.

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