Sandhills’ transportation marketplaces, heavy-duty truck inventory levels are decreasing,

In Sandhills’ transportation marketplaces, heavy-duty truck inventory levels are decreasing, but semitrailer inventory continues to rise, propelled by increases in dry van and flatbed trailers. “With increased pressure from rising inventory and concerns surrounding freight rates and the current freight capacity, dealers are pricing aggressively to move inventory,” says Truck Paper Manager Scott Lubischer.

Sandhills’ used medium- and heavy-duty construction equipment markets are following trends similar to those of semitrailers as inventory levels increased and values decreased in August. “With high interest rates and an upcoming election, the construction industry is facing uncertainty,” says Director of North American Construction Stephanie Olberding. “As our reports indicate again this month, inventory levels continue to climb while values decrease, forcing sellers to adjust pricing.”

The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets and model-year equipment actively in use. EVI spread measures the percentage of asking values over auction values.

Additional Market Report Takeaways
Sandhills market reports highlight the most significant changes in Sandhills’ used heavy-duty truck, semitrailer, farm machinery, and construction equipment markets. Key points from the current reports are listed below. Full reports are available upon request.

U.S. Used Tractors 100 Horsepower and Greater

• Inventory levels in this market rose 2.9% month over month in August, marking several consecutive months of growth. Inventory was 37.09% higher than year-ago levels. Driving these increases are used high-horsepower tractors (those 300 HP and greater), with inventory levels up 4.17% M/M and 62.48% year over year.
• Values have been dropping for months, and this trend continued in August, as asking values dipped 1.28% lower M/M and 2.62% lower YOY.
• Auction values decreased by 1.79% M/M and 13.14% YOY. Declining auction values continue to outpace declining asking prices within the farm equipment industry. For example, the EVI spread for used high-horsepower tractors rose to 48% in August.

U.S. Used Heavy-Duty Trucks

• Inventory levels in this market fell 2.75% M/M and 3.88% YOY in August but are fairly stable, trending sideways. Notably, used sleeper truck and used day cab inventory levels are now roughly equivalent; this marks a shift, as sleeper truck inventory has historically been double that of day cabs. By contrast, used sleeper trucks and day cabs in Sandhills’ Canadian marketplaces are adhering to historical norms, with sleeper truck inventory more than double that of day cabs.
• Asking values decreased 1.15% M/M and 17.16% YOY and are trending down.
• Auction values showed a slight decline of 0.56% M/M and a more significant 18.42% YOY drop in August. Auction values are trending sideways.

U.S. Used Semitrailers

• The used semitrailer market posted increases of 1.93% M/M and 28.48% YOY after several months of growth. The used dry van and flatbed trailer categories are driving inventory growth in this market. Dry van trailer inventory was up 3.36% M/M and 50.77% YOY in August, while flatbed trailer inventory rose 7.71% M/M and 38.57% YOY.
• Used semitrailer asking values were down 2.66% M/M and 18.44% YOY and are trending down. Used dry van and reefer trailers led the way in price decreases; dry van asking prices decreased 6.95% M/M and 26.43% YOY in August, while reefer van asking prices dropped 3.93% M/M and 25.49% YOY.
• Used semitrailer auction values declined 3.75% M/M and 18.52% YOY in August. Used dry van and reefer trailers showed roughly comparable drops but with more significant YOY decreases; dry van auction values were down 5.35% M/M and 23.66% YOY, while reefer trailer auction values were down 3.32% M/M and 25.18% YOY.

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