Equipment Market Values (Q1 2023) - Construction Equipment Resale Values are slowing.
Summer is a time when kids are out of school, families take vacations, TV plays re-runs, the stock market dips; and the equipment market slows too.
Construction equipment resale values are slowing down with FMV down slightly compared to the previous month and down 0.15% since the beginning of 2023. Values in auctions continued their slowdown with a slight dip month over month and an overall decrease of -4% since the beginning of the year. Construction equipment resales are slowing as owners are holding on to their aging equipment. This could be attributed to inflationary costs and the continued difficulty of buying new.
The agricultural industry is having a good year. After a strong start this year, FMV for agriculture equipment has levelled off over the last two months, with a small dip this month. Following what we are seeing, age is down -1.6% and usage is up 9.8%, indicating that farmers are holding onto equipment and choosing not to upgrade currently. On the auction side, FLV was down -1.2%, continuing a trend we’ve seen all this spring, with auction values slipping -4.8% since January.
Malahat Valuation Group specializes in business valuation and real estate appraisals to owners of privately owned companies and their professional advisors. When owners need to leverage, sell or reorganize their assets, we answer the age old question "what is it worth?".
We provide our clients and their advisors peace-of-mind by preparing professional valuations that stand up to scrutiny from lenders, the Courts and Canada Revenue Agency.
Malahat Valuation Group Inc.