By Dian Kohoutek, CPPA

May 29, 2023

The equipment market is constantly evolving, and staying informed about market trends is crucial for equipment owners. The recently published Market Trends Report by Ritchie Bros provides valuable insights into the current state of the industry. While this report highlights specific data on agricultural equipment, the overall trends in the market provide useful insights for equipment owners across industries. This article highlights key findings from the report and explains why the present moment presents an excellent opportunity for equipment owners to seek appraisals from trusted and independent appraisal companies.

The Market Trends Report reveals that Canada has surpassed the United States in equipment sales volume. Where median prices in Canada have increased between 16% – 21% in Tractors and MFWD.  Thousands of items were sold through various channels, indicating a vibrant market. While the report covers various equipment categories, the findings apply to a wide range of equipment types.

The report highlights significant price changes in different equipment categories. Understanding price fluctuations and market dynamics is essential for making informed decisions about equipment valuation.

Q1 2022 set a new highwater mark for most
equipment categories in North America. One year later and all U.S. prices indexes have inflation rates less than zero, including truck tractors (-19% compared to same time period in 2022), vocational trucks (-9%), median earthmoving (-8%), aerial (-7%), and large earthmoving (-2%).

Most equipment indexes in Canada are also showing declining prices compared to 2022, however, large earthmoving is up 3% year over year.

Truck tractors (-2%), medium earthmoving (-1%), and vocational trucks (-1%) all saw price declines, while aerial prices were flat.

Based on the market trends outlined in the report, the current period presents a favorable environment for equipment owners to seek professional appraisals. Here’s why:

Accurate Asset Valuation: An independent appraisal by a trusted company helps equipment owners determine the current market value of their assets. Regardless of the equipment category, having an accurate assessment of asset value is crucial for decision-making.

Financial Planning and Decision-making: Precise equipment valuation aids in financial planning. Equipment owners can use appraisal results to secure loans, negotiate lease agreements, or assess insurance coverage accurately. The insights provided by appraisals support strategic decision-making and optimize financial strategies.

Capitalize on Market Opportunities: Understanding market trends empowers equipment owners to capitalize on emerging opportunities. Appraisals provide insights into equipment categories experiencing price changes or inflation rates. By identifying these trends, owners can make strategic decisions about their equipment investments.

Support Business Growth and Expansion: Appraisals act as a solid foundation for business growth plans. Regardless of the equipment type, equipment owners can evaluate the profitability of their existing assets, identify areas for improvement, and explore opportunities for expansion into new markets.

The Market Trends Report by Ritchie Bros offers valuable insights into the current state of the equipment market, emphasizing the importance of equipment appraisal in the current climate. With robust sales volumes, price fluctuations, and emerging market opportunities, now is the ideal time for equipment owners to seek independent appraisals from trusted appraisal companies. By leveraging these insights, equipment owners can make informed decisions, optimize their financial strategies, and position themselves for success in the ever-evolving equipment market.

Source:

• “Market Trend Report – Used Equipment & Trucks-North America Edition May 2023”- Ritchie Bros Asset Solutions