Ritchie Bros. digs into farm equipment trends with May 2022 Market Trends Report

Rhea-AI Summary

On May 17, 2022, Ritchie Bros. released its May Market Trends Report, indicating a year-over-year equipment price rise of approximately 14% for the three months ending April 2022. Despite ongoing price inflation, the month-to-month inflation rate in the U.S. is showing signs of slowing. Truck tractor prices increased by 52% year-over-year, while the large earthmoving index rose 18% in the U.S. and 13% in Canada. The report highlighted ongoing tight supply and strong demand for equipment, with prices expected to stabilize.

Positive

• Equipment prices up 14% year-over-year.
• Truck tractor prices rose 52% year-over-year.
• Large earthmoving index increased 18% in the U.S. and 13% in Canada.
• Retail values increased 24% year-over-year.

Negative

• Month-to-month inflation rate for truck tractors in the U.S. decreased from 58% to 52%.
• Construction equipment prices in Canada are experiencing increasing inflation.

While pricing remains up year over year, U.S. & Canada indexes show decreasing inflation rates

VANCOUVER, BC, May 17, 2022 /PRNewswire/ - With its May Market Trends Report, Ritchie Bros. digs through farm equipment data to showcase trends in tractor, combine, header, sprayer, and air drill sales. According to Ritchie Bros. agriculture index, equipment prices are up approximately 14% year over year, for the three months ending April 2022.

The free monthly report outlines decreasing inflation rates for most U.S. and Canada price indexes. Pricing is still up year over year, but the month-to-month inflation rate is slowing. For example, in the U.S., truck tractor prices in Ritchie Bros.' May report are up approximately 52% year over year—they were up 58% YOY in last month's report. However, the May report does show increasing inflation for construction equipment prices in Canada.  

To download the May Market Trends Report, visit rbassetsolutions.com/market-trends-report.

"We have experienced unprecedented price inflation for equipment and trucks over the past year, with record demand and well-publicized supply chain issues causing significant tailwinds," said Doug Olive, Senior Vice President (Pricing), Ritchie Bros. "We are continuing to drive strong pricing across most equipment categories and, as expected, the rate of inflation growth is starting to slow down, especially for transportation and aerial equipment. There continue to be pockets of price inflation increases—for example, in Canada, our large earthmoving index increased a further 2% in April, while agricultural equipment and farmland prices have recently set new highwater marks."

Doug Rusch, Managing Director of Rouse Sales, added, "We continue to see tight supply and strong demand for equipment across the retail market, with values continuing to rise month over month. In April we saw retail values increase 2%, making that an increase of 24% year over year."

Used Commercial Assets - Pricing Highlights Price change (±1.5%) year-over-year for the 3 months ending April 30, 2022
Categories	USA			CANADA
Large Earthmoving	Δ	Increased ~	18%	Δ	Increased ~	13%
Medium Earthmoving	Δ	Increased ~	30%	Δ	Increased ~	29%
Aerial	Δ	Increased ~	30%	Δ	Increased ~	21%
Truck Tractors	Δ	Increased ~	52%	Δ	Increased ~	43%
Vocational Trucks	Δ	Increased ~	33%	Δ	Increased ~	27%

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 Kruse 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. 

View original content:https://www.prnewswire.com/news-releases/ritchie-bros-digs-into-farm-equipment-trends-with-may-2022-market-trends-report-301549370.html

SOURCE Ritchie Bros.

FAQ

What were the findings of Ritchie Bros.' May 2022 Market Trends Report?

The report indicates a 14% rise in equipment prices year-over-year, with truck tractors up 52% and signs of decreasing inflation rates.

How did truck tractor prices change according to Ritchie Bros. in May 2022?

Truck tractor prices rose by 52% year-over-year, showing a decrease from the 58% growth reported the previous month.

What trends are noted in the U.S. and Canada for equipment prices?

While prices are increasing overall, the month-to-month inflation rate is slowing in the U.S., but there's inflation growth for construction equipment in Canada.

What is the significance of the large earthmoving index reported by Ritchie Bros.?

The large earthmoving index increased by 18% in the U.S. and 13% in Canada, highlighting strong demand and price resilience.