Used AWP prices continue to rise

According to Rouse Asset Services, scissor lifts have commanded the highest rise in price for used equipment in North America both between August and September 4.7% and over the last six months 14.3%.

AWP (aerial work platform) sales over the last month accounted for 28% of all equipment sold by value, 27% over the third quarter of 2011 and 25% over the last twelve months. This is, by far, the largest of the categories monitored by Rouse although combines the three AWP categories of telescopic booms, articulated booms and scissors.

The Rouse Value Index tracks used equipment for the top 14 equipment categories of major North American rental companies. The index measures the average OLV (orderly liquidation values) for benchmarked models within each category on a monthly basis.

Prices for booms also rose: for articulated it was 2.2% between August and September and 8% over the last 6 months; telescopic booms went up 0.5% and 8.8% over the same periods.

Despite the considerable defleeting during the crisis, sales of used equipment from the North American rental companies have been higher over the last 12 months 2010/2011 than they were the preceding year 2009/2010.

More than half the equipment on sale is 2005 and 2006 models and, from the increased OLV, we know they are commanding higher prices. The increasing order books of the AWP manufacturers shows that equipment is being bought and ordered so sales of used fleet is much more likely to be helping to finance new replacement kit.

It will be interesting to observe price changes as manufacturers' backlogs increase and late model used equipment for sale becomes increasing scarce.