Expert: Supply Chain Disruptions Cause Contractors to Hold On to Aging EquipmentExpert: Supply Chain Disruptions Cause Contractors to Hold On to Aging Equipment
The disruptions continue to impact the equipment market, with contractors keeping equipment longer as availability of new equipment continues to be delayed.
October 18, 2022
Disruptions in the supply chain continue to impact the construction equipment market at large, with one expert expecting the supply chain issues to continue for at least another year and a half.
That’s the opinion of Brian Dewey, the head of strategic accounts for EquipmentWatch, who broke down some of the latest data.
“The new models reaching the market are on strict allocation,” Dewey said. “Seems the consensus is that supply will not return to a normal flow for at least another 18 to 24 months.”
The most popular equipment sold on the resale market continues to be crawler-mounted hydraulic excavators, according to the latest monthly report from EquipmentWatch, which analyzed September numbers.
The report showed that resale activity of equipment continues to be much lower than in previous years.
In August, the equipment resale market was 13.3% less active than in August 2021 and 33.6% lower than the resale activity levels of August 2020.
Despite the slower activity levels persisting, Dewey shared a breath of optimism for the construction industry’s prospects at large.
“The construction economy will remain strong as funding from the infrastructure bill will result in more projects,” he said.
Dewey said more projects is good news for the equipment market.
“Contractors will pay even more attention to their repair/maintenance procedures to ensure their equipment fleet is available,” he said.
This article is brought to you through a collaboration between EquipmentWatch and World of Concrete 360. The EquipmentWatch Market Report is a monthly resource for the construction, lift/access, and agriculture industries to help equipment managers make better-informed decisions by leveraging key equipment values, market activity, age, and usage metrics. For more information about EquipmentWatch’s methodology and data, and to learn more about what it has to offer contractors, click here.