Used equipment markets may not follow the trends of other areas of machine sales. Euro Auctions tell Access International about its success in Spain. Maria Hadlow reports.
The used equipment market can provide interesting insight into how the industry is performing over all. The rapid and heavy defleeting experienced recently flooded the market with first older then newer models. Access equipment, which had traditionally held good residue values, was being sold at very reasonable prices.
The auction houses also have a fair idea of where used equipment will end up as they help with arranging transport and export.
With backlogs for new machines already starting to build up as rental companies begin to renew fleet, new global markets opening up and the potential for disposing of used equipment that does not meet engine regulations in the US and western Europe. What can the trends at auction tell us?
Jonnie Keys of Euro Auctions says that in a lot of under-utilised machines have now been sold, prices in general are higher than 18 months ago and there is a lot of demand for late models from 2007 onwards. Supply volume has greatly decreased.
Equipment that is sold is going to a mixture of buyers with rentals companies buying the majority of the one to three year old machines. This supports the trend over the last six to 12 months of hire companies buying back equipment previously disposed of (obviously not exactly the same machines).
While business may be slowing through a reduced supply of equipment in some markets, business is promising in Spain for Euro Auctions, with unsurpassed levels of pre auction registrations for its sale at Valencia held on 30 September.
As part of the overall European expansion plans of Euro Auctions, the Valencia site was strategically selected to better support loyal customers in southern Europe and its acquisition has been driven by demand from regular consignors. In addition, the location of the Spanish site acts as a distribution platform for the currently booming markets of northern Africa and the Middle East.
Since December 2010, when the site was established, sales have been increasing. Internet activity is said to have grown along with the number of registered bidders. Euro Auctions says that the pricing on equipment sold has been continuously strong and sustainable, with plenty of stock in the region.
The Euro Auctions Valencia auction site extends to 3.2 Hectares (8 Acres) and is situated in the Riba-roja de Turia district of Valencia, offering easy access to the main dock areas for loading and shipping. It is a permanent site and 4 major industial auctions have been held there since December 2010.
Euro Auctions has also expanded its Valencia team with the appointment of two new country sales managers.Carlos Bordonado takes charge of the southern Spanish region, and Pedro Chaves is responsible for developing the market in Portugal.
Jonnie Keys from Euro Auctions comments: "Spain has continually surpassed all of our expectations to the extent that we now need to expand our sales representation in the Iberia Peninsular.
"It is still less than a year since the site in Valencia was launched and in just this very short period we have developed a good reputation in the country ... Spain has readily adopted the American style plant and machinery auction and Valencia now provides Euro Auctions with a strong export platform for machinery bound for North Africa and the Middle East. Lastly, due to the economic down turn across Europe, Spain and Portugal offers great opportunities for both stock acquisition and future plant sales."
At the September 30 Valencia auction 52% of the equipment was bought for export: purchasers came from Spain, UK, Netherlands, Belgium, United Arab Emerites, Romaina, France, Lithuainia, Ireland, Lebanon, Finland, Poland, Portugal, Afghanistan, Germany Iraq and Morocco.
Euro Auctions holds regular auctions, which are also accessible on-line at its sites in Leeds,UK; Dromore, Northern Ireland; Dormangen, Germany and Valencia, Spain.