Report: Heavy-duty Truck, Semi-trailer Markets Changing

Inventory declines have slowed in used heavy-duty construction equipment, while inventory levels have increased in medium-duty construction, according to a new report by Sandhill Global.

Inventory declines have slowed in used heavy-duty construction equipment, while inventory levels have increased in medium-duty construction, according to a new report by Sandhill Global.
Inventory declines have slowed in used heavy-duty construction equipment, while inventory levels have increased in medium-duty construction, according to a new report by Sandhill Global.
Sandhill Global

Sandhill Global released a market report this month that shows an increase in inventory for used heavy-duty trucks, semi-trailers. Auction values for those same truck categories, meanwhile, have decreased. 

According to the report, from April to May, heavy-duty truck inventory was up 17% and semi-trailer inventory was up 20%. Auction values displayed a 4.8% month over month (M/M) decrease among heavy-duty trucks and a 3.9% M/M drop for semi-trailers. The twin influences of rising inventory and decreasing auction values suggest that asking values are likely to reduce in the near-term.  Naturally, if inventories keep growing, then values will trend downward. 

Construction Equipment

The report is created using what is called the Sandhills Equipment Value Index (EVI), which includes data on equipment available in auction and retail markets, as well as model year equipment actively in use. The Sandhills EVI showed auction values for heavy-duty construction equipment in May were down 7.5% M/M, but the current values are still higher than 2021, up 8.7% year over year (YOY). For medium-duty construction equipment, the Sandhills EVI showed auction values increased 0.5% M/M and 13% YOY.

Used Heavy-duty Trucks and Semi-trailers

The report shows auction values for used heavy-duty trucks remaining higher than they were in 2021, up 49% year-over-year in May. However, shifting trends in inventory (which was up 17% in May) and recent decreases in auction values strongly suggest a downward trajectory for auction values going forward. The report also states:

  • In May, the Sandhills EVI showed asking values for used heavy-duty trucks were up 60% YOY, but asking values are showing some signs of turning with only a 1.6% M/M increase.
  • Auction values in the semi-trailer market (which includes drop-deck, dry van, flatbed, and reefer trailers) were up 49% YOY; yet, similar to heavy-duty truck trends, used inventory levels for semi-trailers were up 20% in May.
  • The Sandhills EVI indicates that asking values for semi-trailers were up 2.4% M/M and up 63% YOY in May.

Read the full report here

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