ExEcutivE REPORt


Fuel prices driving demand for used equipment


Rising fuel prices and lengthening lead times are leading many hirers to


consider buying at auction instead. Peter Haddock speaks to Ritchie Bros. to find out how the market is moving.


W


ith the price of fuel hitting record highs and the switch from red to white diesel


adding to the cost of operating machines, the used equipment market continues to be buoyant, even as more new Stage V compliant equipment is now being delivered.


To determine how fuel prices and other factors impact the used equipment market, I spoke to Rupert Craven, Sales Director for Ritchie Bros UK.


Rupert: “There is no doubt that fuel costs are increasing demand for new equipment as owners look to renew fleets with more fuel and carbon efficient equipment. And because there is still a continued squeeze in the availability of younger used equipment. But as we move into the summer dig season, we see many more new equipment deliveries, which is ultimately leading to more used equipment coming into the market as businesses stop holding onto machines.


“We expect this to lead to further changes in used equipment values in what is still a buoyant market. You only have to look at data from our free to use online Asset Valuator and EMEA market trends reports to see how prices change.


“For example, in our May 2022 report, the sales of Site Dumpers increased by over 35% in 2022 compared to last year, with the


UK market being the most dominant in this category.”


Interestingly, the median price for these items also increased by 7% to around £7,450, with the median age of machines being sold dropping from nine to seven years. For example, the average price of a Terex TA1 EH 2015 one tonne dumper on the Ritchie Bros asset valuator is £6,672.


“In other areas, we are also seeing the shift from traditional site lighting to more sustainable solutions using solar panels and LED's. This is bringing fleets of younger lighting towers into our auctions,” says Rupert.


“And it's not just the likes of mini excavators and construction equipment we sell. It's also tools, bowsers, generators, attachments and even agricultural equipment.


For customers looking to trade in newer machines, in particular, Ritchie Bros offers the Marketplace E always-on platform, where they can sell with a reserve or make an offer as a buyer. This allows buyers to source equipment all year round and gives sellers the ability to choose between this approach or an unreserved auction.


“We even purchase equipment straight from sellers, putting it into a future auction, as this helps to release capital very quickly,”


Just a few of the machines on offer at a recent Ritchie Bros. auction.


continues Rupert. “This approach is increasingly popular when the supply of used equipment is still tight, as it enables the seller to act quickly to secure a particular unit.


“For both owners and buyers, knowing how prices are changing is important and that is why our Asset Valuator is becoming more popular as we are constantly updating it with prices from our global Ritchie Bros. auctions as well as our, Marketplace-E and Mascus platforms, it gives users a real-time view of the market.”


Perhaps unsurprisingly, an increasing trend is the use of the Ritchie Bros mobile app, which allows customers to buy assets on the move.


“In a recent auction, we sold a roller to a customer who was parked up sitting in his dozer!” says Rupert. “With a full description, pictures and even videos now available to see online, more information than ever before is available to support buyers. But I always encourage people to come to our Maltby site to see the equipment up close in our yard and, where relevant, turn the key and start the engine.” n


BUYERS’ MARKET If these images have inspired you, the next Ritchie Bros auction is on 29th and 30th


The market for quality used equipment is still buoyant. June 2022. See www.rbauction.co.uk for more info.


36 Executive Hire News - June 2022


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