The declining inventory levels seen throughout September continued unabated in major equipment categories during October, and a new Sandhills Global Market Report indicates used equipment values are responding with steep value increases as supply diminishes.

Inventory declines have been particularly noticeable for top manufacturers; used Freightliner sleeper truck inventory is down 71.8 percent year-over-year, used Caterpillar crawler excavator inventory is 37.5 percent less than last year, and used John Deere high-horsepower tractor inventory has dropped 43 percent Y/Y.

The key metric used in this reporting is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions.

Sandhills Market Reports highlight the most significant changes in the used heavy-duty truck, construction equipment and farm machinery markets

U.S. Used Heavy-Duty Trucks

• Auction values for heavy-duty trucks increased 66.7 percent Y/Y, with average values going from $28,000 last October to $47,000 this October. Asking values were up 48.4 percent Y/Y with average values also increasing nearly $20,000 Y/Y.
• Freightliner is the top manufacturer in terms of used sleeper truck inventory, and in October, inventory dropped to just over 2,100 sleeper trucks. The 71.8 percent Y/Y inventory decline has strongly contributed to the 77.4 percent Y/Y value increase in Freightliner sleeper trucks.

U.S. Used Heavy-Duty Construction Equipment

• Flattening values for the construction market, an ongoing trend since May 2021, continued into October. The Sandhills EVI shows that auction values for construction equipment were up 17 percent Y/Y, while asking values increased 11.4 percent Y/Y.
• Crawler excavators displayed the largest Y/Y asking value increase within the construction market, according to the Sandhills EVI. Caterpillar, the manufacturer with the most used crawler excavator inventory, asking values were up 11.3 percent Y/Y for this category in October. Used Cat crawler excavator inventory dropped by 37.5 percent Y/Y.

U.S. Used Agriculture Equipment

• The Sandhills EVI shows used farm equipment values up in October 2021 compared to October 2020. Auction values increased 13.5 percent Y/Y and asking values were up 7.9 percent Y/Y.
• The 300-horsepower and greater tractor category posted the largest overall asking value Y/Y variance within the ag market. John Deere is the inventory leader in the high-horsepower category and saw a 43 percent Y/Y inventory decline in October. The Sandhills EVI charted a 14.1 percent Y/Y asking value increase for John Deere's high horsepower tractors.

for more information, or to receive detailed analysis from Sandhills Global, contact it at marketreports@sandhills.com.