{"id":91192,"date":"2021-03-29T14:03:14","date_gmt":"2021-03-29T13:03:14","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=91192"},"modified":"2021-03-29T14:03:14","modified_gmt":"2021-03-29T13:03:14","slug":"used-machinery-upward-trend","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/plant-equipment-supplies-news\/used-machinery-upward-trend\/91192\/","title":{"rendered":"Demand for used machinery: The upward trend continues"},"content":{"rendered":"

As many industries continue their journeys back from a challenging 2020, global demand for used equipment continues to increase. Many businesses remain wary of making big investments in new machinery, while supply chain issues have hit delivery levels for new equipment. All told, it makes the market for used heavy equipment a place of exciting opportunities for both buyers and sellers, explains Karl Werner, president international at Ritchie Bros<\/a><\/h2>\n

Global asset management and disposition company Ritchie Bros saw sales in most categories of used machinery perform above expectations in 2020. While the construction industry was unquestionably hit hard by the pandemic<\/a>, the slowdown has not been universal.<\/p>\n

In many countries, infrastructure projects have seen construction work back at pre-pandemic levels. At the same time, many sectors such as agriculture, forestry and mining have increasingly turned to used equipment to meet their current machinery needs.<\/p>\n

\u201cWe\u2019ve seen tremendous global demand for used machinery,\u201d says Karl Werner, president international at Ritchie Bros. \u201cThere\u2019s still a lot of work going on, and credit is still available. In times of uncertainty, businesses tend to buy used machinery rather than new equipment to avoid big financial commitments.\u201d<\/p>\n

This shift to used machinery purchases has coincided with several original equipment manufacturers (OEMs) reporting supply chain issues due to the pandemic<\/a>.<\/p>\n

Others reduced production volumes in 2020 to protect employees during lockdown, and this has also impacted new machine deliveries.<\/p>\n

\u201cLonger waiting times for new equipment are fuelling the demand for used machinery<\/a>, which is available immediately. All these factors combined have created a perfect storm that\u2019s driving the strong demand for used heavy equipment<\/a>, resulting in good price-performance for sellers,\u201d said Werner.<\/p>\n

Early demand indicators of 2021<\/h3>\n

\"\"For many, bigger equipment auctions early in the year are indicative of the state of the market. High demand was perfectly demonstrated at Ritchie Bros\u2019 most recent auction in Orlando, Florida, the company\u2019s biggest auction of the year.<\/p>\n

In total, more than 12,000 items were sold for over $191m (\u00a3138m) during the six-day event in mid-February. Strong pricing across every asset category was seen, confirming the positive trend Ritchie Bros is seeing.<\/p>\n

Truck tractors, skid steers and backhoe loaders saw a particularly strong price performance, followed closely by wheel loaders, aerial equipment and dozers.<\/p>\n

Participation in the Orlando auction also reached record highs \u2013 attracting more than 22,700 online bidders from over 80 countries \u2013 25% more than the same auction in 2020.<\/p>\n

In Europe, Ritchie Bros is also seeing a strong appetite for used machinery. At a recent auction in Moerdijk, The Netherlands, bidder registrations were up 19% compared with last year. With more than 2,580 online participants from 92 countries, the auction recorded the highest number of bidders in five years.<\/p>\n

Around 80% of the machinery was sold to bidders outside of The Netherlands, at strong prices: boom lifts, crawler tractors, hydraulic excavators, scissor lifts and wheel loaders, on average, fetched 5% above the auction price of the Moerdijk event last November.<\/p>\n

\u201cShifting to online-only bidding has allowed us to attract new types of customers to our marketplace,\u201d said Werner, noting that Ritchie Bros has seen a rise in end-user participation in auctions, people such as construction equipment owner\/operators, who in the past did not represent a large portion of participants at \u2018live\u2019 auctions.<\/p>\n

Shift online accelerated<\/h3>\n

The Covid pandemic has accelerated trends that were already well underway, including online bidding. In 2020, Ritchie Bros saw website traffic increase by 35%, while bidder registrations were up by 71%.<\/p>\n

Throughout 2020, customers carried out more than 24m equipment searches and viewed 30m items in Ritchie Bros\u2019 mobile app. Today, mobile app users represent approximately 30% of the customers of rbauction.com<\/a>.<\/p>\n

According to Werner, this shift to online transactions not only widens the market for equipment buyers and sellers, it also creates new data insight opportunities.<\/p>\n

\u201cData is the new oil,\u201d he said. \u201cIt\u2019s becoming more and more valuable and obtainable every day. Not only does it help Ritchie Bros but also it allows us to help our customers. We have a lot of data on used machinery transactions \u2013 we sell more machinery than any other company in the world \u2013 we can gather and present data to help our customers run their businesses more efficiently.\u201d<\/p>\n

This sort of market insight opens new possibilities for equipment owners. They\u2019ll be able to understand when the best time to sell or buy an asset is \u2013 depending on the machine type, hour usage, machine age and more. With the acquisition of data firm Rouse Services, Ritchie Bros is on track to making this kind of tailored insight a reality for its global customer base.<\/p>\n

\u201cThis is a really exciting time in the industry,\u201d Werner said. \u201cAlthough the global pandemic has caused instabilities across all sectors, it has forced us to adapt the way we do business and accelerated remote working<\/a> and online asset disposition. We don\u2019t see this subsiding when restrictions are lifted. The future will most likely be a hybrid model giving our buyer and sellers access to a wider global market.\u201d<\/p>\n

 <\/p>\n

 <\/p>\n

Karl Werner<\/strong><\/p>\n

President international<\/p>\n

Ritchie Bros<\/a><\/p>\n

+31 765 242 600<\/p>\n

www.rbauction.co.uk<\/a><\/p>\n

Twitter: ritchiebros<\/a><\/p>\n

LinkedIn: Ritchie Bros<\/a><\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

As many industries continue their journeys back from a challenging 2020, global demand for used equipment continues to increase. Many businesses remain wary of making big investments in new machinery, while supply chain issues have hit delivery levels for new equipment. All told, it makes the market for used heavy equipment a place of exciting opportunities for both buyers and sellers, explains Karl Werner, president international at Ritchie Bros.<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[308],"tags":[689,676,583,664,652,54592,908,283,579,84305,431,701],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-91192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-plant-equipment-supplies-news","7":"tag-equipment","8":"tag-construction","9":"tag-construction-products","10":"tag-construction-services","11":"tag-construction-vehicles","12":"tag-coronavirus","13":"tag-economy","14":"tag-finance","15":"tag-infrastructure","16":"tag-pbc-today-may-2021","17":"tag-plant-equipment-supplies","18":"tag-supply-chain"},"acf":[],"yoast_head":"\nDemand for used 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