Used construction equipment market stays buoyant

Ritchie Bros. total construction sales in FY2022 were down by one per cent on the previous year, with 666 units sold in 2022 compared to 677 in 2021, according to the company’s annual market trends report released yesterday.

Ritchie Bros. said global OEM supply issues were the key driver of demand for used equipment across all sectors. The lack of supply led to increased demand and prices for used equipment across the world.

The report found that on Australian shores, lack of supply generated greater interest in used equipment auctions, with Ritchie Bros. recording increases in registered bidders (up 42 per cent), sellers (up nine per cent), lots sold (up 27 per cent), and buyers purchasing power (15 per cent) compared to FY21.

Complete dispersals in 2022 also 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, according to Ritchie Bros. 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.

While agriculture machinery and transportation recorded significant increases in sales last year, the construction sector struggled a bit due to labour shortages, rising cost of material, project delays and ongoing supply chain issues.

In terms of the categories, wheel loaders experienced an increase in sales (up 12 per cent), whereas sales of dozers, excavators and articulated dump trucks dipped.

However, Ritchie Bros. said demand for construction services will remain strong across the nation, and the supply of new equipment is expected to improve somewhat in 2023.

Related: Record demand for used transport and construction equipment

“The sector is buoyed by the Australian Government’s $120 billion, 10-year infrastructure investment pipeline, the roll out of the Buy Australia Plan to improve the way government contracts are awarded and increasing immigration to address skilled labour shortages,” the report said.

Ritchie Bros. also anticipates supply of new equipment to improve this year, with Japan’s big three OEM suppliers of construction equipment – Caterpillar, Komatsu and Hitachi – starting to get regular stock coming through as their factories recover from COVID.

“This should see more earthmoving packages come into the secondary market,” the company said.