EXCAVATOR SELL-OFF

Rise in late-model inventories leads to soft prices.

- Dave Mowitz

Talk about a comeback! The supply shortages that dogged farm machinery manufacturers during the pandemic were also inflicted on construction equipment makers, resulting in new machine shortages that lasted into early 2023.

But now that manufacturing is back to full steam, both industries are experiencing massive buildups of used machines coming in from trade-ins.

Just how massive?

In the midst of 2022, inventories of used medium-duty construction equipment were 40% lower than average. Toward the end of 2023, those inventories skyrocketed, standing now at 48% higher than average, according to Sandhills Global (sandhills.com).

In 2023, inventories of medium-sized skid steers, backhoes, and excavators climbed nearly 50%, points out Mitch Helman of Sandhills Global. This is putting downward pressure on prices on dealer and auction lots, he adds.

For farmers, this is a double windfall. Their entry into their first excavator or their upgrade to a newer or larger machine has been enriched by more machines to choose from. This also can lower bids at auction or create more wiggle room when negotiating prices.

The accompanying Price Guide looks at the most common excavator size sought by farmers - midsized tracked machines. The guide's listings focus on 5-year-old machines.

Excavator Terminology

While shopping among excavator makes and models, spend time investigating units with similar capacities.

The first characteristic in that search will be horsepower. The models in the Price Guide range between 120 and 160 hp. However, for excavators, engine output is only part of the performance equation.