The November Rouse Value Index for used equipment prices decreased to 44.5, down 1.2% from October values. This follows six 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 November Rouse Value Index remains 2.8% higher than the prior peak period of 43.3 in April 2007 and 49.9% 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.

November auction sales of rental and construction equipment tracked by Rouse averaged 8.7% lower than Rouse October FLV values. In the month of November, Rouse recorded 2,562 units that sold at 24 separate auction sales conducted across North America. The units represented a combined FLV (as of October 31st) of $73.6 million and generated $67.2 million of gross auction proceeds. This marks the eighth 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 December 2015 Rouse Rental Report.