Strong activity in the European construction industry and equipment supply chain disruptions have continued to push demand for machinery and pricing up, according to a new report by Ritchie Bros.
Its Q4 2021 Market Trends Report dives deeper into supply and demand, pricing, ageing trends using comprehensive transactional data, and provides a review of the median prices for construction equipment, including articulated dump trucks, backhoe loaders, midi and mobile excavators, crawler tractors, and all-terrain cranes.
In 2021, European construction projects continued to accelerate, putting greater strain on the market as the need for equipment skyrockets.
“The market continues to function, but the supply of materials needed for production is lagging behind,” says Johan Lustig, product manager valuation services, for Ritchie Bros. Long delivery times on new equipment makes the used equipment market much more appealing for buyers across Europe and beyond.
“Analysing Mascus listings, we see a decrease in equipment stock in our clients’ yards, while the average age of used equipment for sale is rising,” Lustig added. “The same trend is occurring with auction lots where both the age of the machines and the prices are increasing.”
The jump in sale prices has been observed for almost all types of machines, such as backhoe loaders which saw a massive 44% jump in median pricing.
Ritchie Bros’ ability to drive buyer demand in this ‘seller’s market’ continued to be visible across Ritchie Bros. auctions and online marketplace Marketplace-E in the form of increased buyer participation and high price realization. Equipment listing website Mascus was equally favourable for sellers, with large increases in buyer inquiries across the board – from small to large equipment categories. All-terrain cranes, for example, showed an uptick of 32% of direct calls to sellers on Mascus compared to the same period in 2020.