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Rouse: Equipment OLVs and FLVs Decline in August

October 02, 2015, 07:00 AM
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Topic: Rental News

The August Rouse Value Index™ for used equipment prices decreased to 45.3, down 0.8% from July values, primarily driven by weaker recoveries observed in auction transactions for the five months ending August 2015. While there has been some softness into the second half of 2015, the August Rouse Value Index™ remains 4.7% higher than the prior peak period of 43.3 in April 2007 and 52.7% higher than the prior trough period of 29.7
in June 2009. The Rouse Value Index™ measures the average Orderly Liquidation Values for benchmark models across fourteen major rental category indices on a monthly basis.

August auction sales of rental and construction equipment tracked by Rouse averaged 7.2% lower than Rouse July FLV values. In the month of August, Rouse recorded 3,379 units that sold at 33 separate auction sales conducted across North America. The units represented a combined FLV (as of July 31st) of $83.4 million and generated $77.3 million of gross auction proceeds. Although August results are showing a stabilized environment, this marks the fifth consecutive month of declining auction recoveries. Rouse attributes these declines to a combination of: relative y-o-y increase in volume, equipment coming out of the oil and gas markets with “heavier use” than comparable equipment from the construction end markets, and weaker international demand coupled with lower purchasing power as a result of the stronger US dollar.

Read the full Rouse Rental Report - September 2015

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