Excavator sales in the hole
A recent report by auctioneer Ritche Bros. shows U.S. excavator sales are experiencing a summer slump. But Canada was a different story.
Excavators wait to be sold by Ritchie Bros.
- Ritchie Bros reported recent U.S. sales for excavators have dipped.
- Despite this, Canadian sales remained strong.
- The auctioneer said supply issues remain a critical factor in pricing and sales.
The Whole Story:
An August report by heavy equipment auctioneer and seller Ritchie Bros. found that the U.S. median prices for large excavators are down 9 per cent year over year, while mini excavator prices declined 5 per cent in the last 90 days.
However the company noted that things looked far less glum in Canada where large excavator prices jumped 12 per cent year over, while mini excavator prices over the last 90 days have rocketed up 31 per cent.
The report also covered Ritchie Bros.’ individual mix-adjusted industry indexes, which are still up over 2021, but declining on a month-to-month basis since the peak pricing achieved earlier this year. In the U.S., truck tractor pricing still leads the way, up 27 per cent year over year, while vocational trucks, medium, and large earthmoving prices are up 18 per cent, 15 per cent, and 12 per cent respectively. Meanwhile, in Canada, truck tractor pricing is up 25 per cent, while vocational trucks, medium, and large earthmoving come in at +10 per cent, +13 per cent, and +12 per cent.
“We continue to experience year-over-year price inflation for equipment and trucks in the U.S. and Canada,” said Doug Olive, senior vice president of pricing for Ritchie Bros. “However, as the transportation and logistics markets normalize, we have seen truck prices decline. We are seeing similar pricing trends across our other industry indexes as well, with year-over-year increases, but declining on a month-to-month basis.”
Doug Rusch, managing director of rouse sales explained that tight supply continues to be the story in the retail market, with lower-than-typical sales volumes driving strong pricing and retail values increasing 2 per cent in July.
“Excavators in particular have shown strong pricing, with retail values rising 4 to 5 per cent in the past 90 days across all sizes classes,” said Rusch. “Auction values for excavators have moderated a bit since June 2022. Since then, we have seen smaller class mini excavator prices decline 6-7 per cent percent at auction, while larger excavators have declined 2 per cent.”