Used equipment prices are on the
rise – and likely to accelerate during 2011 as the US and global economies
improve, rental companies start to turn over aging fleets and demand for new
equipment outstrips supply.
That’s the view of on-line used
equipment sellers Iron Planet CEO Greg Owens in a presentation at
CONEXPO-CON/AGG 2011 this week.
“Used equipment prices have
generally been going up since the lows of 2008-2009,” he said.
“They went up in 2010 across the
board – although some equipment types did better than others.
“We are continuing to see strong
support for used equipment and demand is increasing; not hugely, but it is
increasing.”
Owens said there were a number of
drivers for this, including the fact that rental fleets are starting to age
because companies have deferred replacement purchases – but now need to renew
them.
“Original equipment manufacturers
(OEMs) have cut production over the past three years, so there is now a lack of
supply of new equipment and delivery times have started rising.”
Despite the recession in the US
and Europe, Owens said that Iron Planet – which counts Cat, Komatsu and Volvo
as strategic investors – had managed to keep growing over the past three years,
thanks to its operating in a global marketplace and its business model of
frequent online auctions backed by its IronClad Assurance guarantee of a
machine’s condition.
