And high prices, at least in the first part of 2011, don’t seem to be holding them back, report National Auctioneers Association members.
Construction equipment is a main focus for Tampa Machinery Auction Inc., Tampa, Fla.
In Florida, demand is high for wheel loaders, graders, bucket trucks, excavators and many other types of light and heavy machinery, says Tampa Machinery’s Dave Nelson. He says the slow economy has limited construction projects in his area, and therefore companies are going out of business or selling equipment to raise capital.
A dip in supply has resulted in higher-than-normal prices for Tampa Machinery; however, Nelson says high prices are not offsetting a significant drop in volume. A good auction in 2009 and 2010 had 1,200 to 1,300 lots, and now, the company is down to 700 to 800 lots per auction.
In late March, a Caterpillar 950G wheel loader brought $74,000, when Nelson says he expected to receive $50,000 to $60,000. A John Deere motor grader, in the same sale, brought $60,000 against a $40,000 to $50,000 estimate.
Prices also are up for Plant & Machinery Inc., Houston, which sells industrial manufacturing products, including plastic-injection molding, food-processing and metal-fabrication equipment. Compared to what Plant & Machinery was receiving at the height of the recession, the company’s Ron Moore says prices are up 20 percent to 30 percent.
Like Moore, Allen Henslin of Henslin Auctions Inc., Bird Island, Minn., says his company is seeing significant price gains. In his line of work — farm equipment — prices are up 15 percent to 20 percent compared to one year ago.
Henslin attributes this success to the overall strength of the agricultural market, which in his area is bringing good prices for commodities such as corn, soybeans, beets and peas, he says.
Overall, Henslin says times are good for Auctioneers who sell machinery and equipment.
Find out what sales methods are working best for NAA Auctioneers. Read the complete report from Auctioneer magazine.