Ritchie Bros. August Market Trends Report shows declining excavator volumes & pricing in the U.S.

Rhea-AI Summary

Ritchie Bros.' August Market Trends Report highlights contrasting excavator pricing trends between the U.S. and Canada. In the U.S., median prices for large excavators are down 9% year-over-year, with mini excavator prices declining 5% in the last 90 days. Conversely, Canada experienced a 12% increase in large excavator prices and a 31% rise for mini excavators. Despite strong year-over-year pricing, the report notes a month-to-month decline in various equipment sectors, attributed to normalizing transportation and logistics markets.

Positive

• Excavator pricing in Canada shows significant increases of 12% (large) and 31% (mini) year-over-year.
• Year-over-year price inflation for trucks and equipment continues in both the U.S. and Canada.
• Truck tractor pricing is strong in both regions, with increases of 27% in the U.S. and 25% in Canada.

Negative

• In the U.S., median prices for large excavators are down 9% year-over-year.
• Mini excavator prices in the U.S. have declined 5% in the last 90 days.
• Month-to-month pricing trends are declining across several categories since peak pricing earlier this year.

Canada is a different story, with large excavator prices up 12%, while mini excavators are up 31%

FORT WORTH, Texas, Aug. 18, 2022 /PRNewswire/ - With its August Market Trends Report, Ritchie Bros. focuses on large and small excavator sales in the United States and Canada. In the U.S., median prices for large excavators are down 9% year over year, while mini excavator prices declined 5% in the last 90 days. In Canada it is quite a different story, with large excavator prices up 12% year over, while mini excavator prices over the last 90 days have increased 31%.

After the main feature on excavators, the report turns to 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% year over year, while vocational trucks, medium, and large earthmoving prices are up 18%, 15%, and 12% respectively. Meanwhile, in Canada, truck tractor pricing is up 25%, while vocational trucks, medium, and large earthmoving come in at +10%, +13%, and +12%.

"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, Pricing, 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, added, "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% in July. Excavators in particular have shown strong pricing, with retail values rising 4-5% in the past 90 days across all sizes classes. Auction values for excavators have moderated a bit since June 2022. Since then, we have seen smaller class mini excavator prices decline 6-7% percent at auction, while larger excavators have declined 2%."

Used Commercial Assets - Pricing Highlights Price change (±1.5%) year-over-year for the 3 months ending July 31, 2022
Categories	USA			CANADA
Large Earthmoving	Δ	Increased ~	12 %	Δ	Increased ~	12 %
Medium Earthmoving	Δ	Increased ~	15 %	Δ	Increased ~	13 %
Aerial	Δ	Increased ~	13 %	Δ	Increased ~	6 %
Truck Tractors	Δ	Increased ~	27 %	Δ	Increased ~	25 %
Vocational Trucks	Δ	Increased ~	18 %	Δ	Increased ~	10 %

Source: Ritchie Bros. transactional data.

 

About Ritchie Bros.:

Established in 1958, Ritchie Bros. (NYSE:RBA) (TSX:RBA) is a global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. Operating in a number of sectors, including construction, transportation, agriculture, energy, mining, and forestry, the company's selling channels include: Ritchie Bros. Auctioneers, the world's largest industrial auctioneer offering live auction events with online bidding; IronPlanet, an online marketplace with weekly featured auctions and providing the exclusive IronClad Assurance^® equipment condition certification; Marketplace-E, a controlled marketplace offering multiple price and timing options; Ritchie List, a self-serve listing service for North America; Mascus, a leading European online equipment listing service; Ritchie Bros. Private Treaty, offering privately negotiated sales; and sector-specific solutions GovPlanet, TruckPlanet, and Ritchie Bros. Energy. The Company's suite of solutions also includes Ritchie Bros. Asset Solutions and Rouse Services LLC, which together provides a complete end-to-end asset management, data-driven intelligence and performance benchmarking system; SmartEquip, an innovative technology platform that supports customers' management of the equipment lifecycle and integrates parts procurement with both OEMs and dealers; plus equipment financing and leasing through Ritchie Bros. Financial Services. For more information about Ritchie Bros., visit RitchieBros.com.

Photos and video for embedding in media stories are available at rbauction.com/media. 

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SOURCE Ritchie Bros.

FAQ

What does Ritchie Bros' August Market Trends Report indicate about excavator prices in the U.S.?

The report indicates that median prices for large excavators in the U.S. are down 9% year-over-year, while mini excavators have seen a 5% decline in the last 90 days.

How are excavator prices performing in Canada according to the August Market Trends Report?

In Canada, large excavator prices have increased by 12% year-over-year, and mini excavator prices jumped 31% over the past 90 days.

What are the month-to-month pricing trends reported by Ritchie Bros. in August?

The report notes a declining trend in month-to-month pricing across various equipment categories since reaching peak pricing earlier in the year.

Which equipment categories are experiencing the most significant price increases in the report?

Truck tractors are seeing the largest price increases, with 27% in the U.S. and 25% in Canada.