U.S. Medium-Duty Equipment Auction Values Rise 3.1%

United States - U.S. construction equipment auction values improved slightly in August, with medium-duty machines leading the way at a 3.1% year-over-year increase.

Overall inventories of used construction equipment trended downward, while crawler excavators and loader backhoes drove modest gains in auction values. The stability comes as rental demand and infrastructure activity help offset ongoing tariff and interest rate pressures.

The Federal Reserve’s recent 25-basis point rate cut provided a short-term lift for rental companies and equipment financing, but long-term growth hinges on trade policy clarity.

Mr. Jim Ryan, Equipment lease and finance manager at Sandhills Global, said, “The rate cut is obviously a shot in the arm,” Ryan told Equipment Finance News. “But to see a long-term play, the tariff solution is going to have to get figured out before you’re going to see a real bump in buying.”

Some construction inventory continues to shift into rental fleets, particularly mini excavators and skid steers, which also serve the agriculture market, Ryan noted.

Meanwhile, industry margins remain under pressure. Tariff-related cost increases are expected to flow through to dealer prices, squeezing profitability despite steady rolling 12-month performance.

Mr. Marc Johnson, principal for equipment dealers at consulting firm Pinion Global, said, “We already have a margin problem. Whether you’re on the construction side or on the ag side, margins are tightening. We’re flatlining on performance.”

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