Summer Slowdown for Used Construction Equipment, But Values Still High

Construction equipment values have stalled on both the resale and auction channels. EquipmentWatch’s July Market Report indicates that this is an expected seasonal slowdown.

The monthly report is designed as a resource to help fleet managers make better-informed decisions by leveraging equipment values, age, and usage metrics when considering the sale, auction, or purchase of equipment.

Construction equipment resale values continued their slowdown with fair market value down 1.8% since the beginning of 2023. FMV in May was down 0.43% compared to April 2023. 

Values on the auction channel also continued their slowdown, dipping 1.46% month-over-month and an overall decrease of 5.5% since the start of the year.

EquipmentWatchWhile the month-over-month values look slow for gains in the resale market, the more significant increases can be seen in year-over-year values on the auction channel, with construction equipment values up 33.3%.

The data collected by EquipmentWatch lines up with the Associated Builders and Contractors backlog indicator metrics, which continue to indicate an expectation of growth within the next six months.

Many key infrastructure projects are just getting underway, and many construction firms anticipate a robust year.