Used Values on the Rise
A major reason for this is that the national rental firms have had to slow down their AWP equipment renewal plans. Previously even sharply increased re-sale values were unable to match the high book values being carried by many of these mega-branch rental companies. This meant that machines had to stay in inventory to depreciate a few more years in order to avoid "book losses." Fewer trade-ins from rental fleets meant fewer used machines on the market.
A related factor is that the large pool of used equipment is at last getting consumed. Many independent rental operators have selectively purchased these machines as a springboard for their new businesses. Also contributing to the trend is the stabilization of pricing coming form Genie and JLG. Although both continue to slug it out for market share, they both seem to realize that profitability can no longer suffer to the extent that it has in the past.
What's more, the recent rise in steel prices and subsequent price increases in finished goods-the first in years for some manufacturers-has only helped to add to the value of good used equipment. Certainly the instability associated with the coming and going of certain "marquee" brands serves to boost the value of brands produced by manufacturers which are perceived as being the most financially stable.
The story is similar for cranes. As a couple large crane rental companies suspended the practice of iron dumping, used equipment values significantly increased. Consider also the deep discounting that went on for years between Terex and Grove. Manitowoc 's acquisition of Grove and the subsequent recognition by Terex that Grove wasn't just going to go away has seemed to stabilize the market. As new crane prices continue to go up, contractors and rental companies are snapping up any good used crane on the market.
What about telehandlers? Although wholesale values will continue to strengthen, telehandler values never really fluctuated as much these other products. In addition, market growth has helped to buoy wholesale values. It also helps that telehandler manufactures are less reliant on rental fleet operators for retailing their equipment. And in comparison to the number of producers in the aerial and crane markets, there is still a lot of shaking out to do among the manufacturers of telescopic handlers. Dispite the fact that JLG and Ingersoll-Rand probably build 80 percent of the units sold in North America , there remains at least 16 other manufacturers offering as many as 22 different brands.
More sources for the product means more competition. More retail buyers means buyers overall for used equipment. A stable wholesale value structure for telehandlers is a by-product of all these factors.
Bottom line is this. If you are in the market for a good piece of used equipment I wouldn't sit around waiting for a better price! With all these dynamics and the summer building season upon us, used equipment values are only going to continue to rise.
