The October Rouse Value Index™ for used equipment prices decreased to 45.0, down 0.6% from September values. This follows five consecutive months of declines primarily driven by weaker recoveries observed in auction transactions. While there has been some softness into the second half of 2015, the October Rouse Value Index™ remains 4.0% higher than the prior peak period of 43.3 in April 2007 and 51.7% 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.
October auction sales of rental and construction equipment tracked by Rouse averaged 5.1% lower than Rouse September FLV values. In the month of October, Rouse recorded 3,716 units that sold at 31 separate auction sales conducted across North America. The units represented a combined FLV (as of September 30th) of $96.8 million and generated $91.8 million of gross auction proceeds. Despite a stabilizing trend in October, this marks the seventh 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 November 2015 Rouse Rental Report.