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ANNUAL
MARKET TRENDS REPORT
AUSTRALIA
Ritchie Bros. Reports Record Growth in 2022 with Strong Demand for Used Equipment.
BRISBANE, AUSTRALIA – The used equipment market experienced heated demand and strong pricing in 2022, leading many to the secondary marketplace to scale up, sell off, or restructure their operations, according to the Ritchie Bros. Annual Market Trends Report.
Global original equipment manufacturer (OEM) supply issues were the key driver of demand for used equipment across all sectors. This lack of supply led to increased demand and prices for used equipment across the world. The report found that on Australian shores, this generated greater interest in used equipment auctions, with Ritchie Bros. recording increases in registered bidders (up 42%), sellers (up 9%), lots sold (up 27%), and buyers purchasing power (15%) compared to FY21.
In 2022, complete dispersals increased significantly, with market conditions motivating many Australian operators to bring forward retirement, close their business and capitalise on the strength of used equipment pricing. This was most notable in the transport sector, where a number of large industry players left the market and triggered full dispersal and retirement sales.
Transport was the star performer on the market this year and was a key reason behind Ritchie Bros. recording a second consecutive year of record growth. Sales volumes for all types of transport equipment sold across 2022 were up 37% compared to 2021, including 29% more trailers and 41% more trucks sold than in the previous year. Prime movers enjoyed a 22% median price increase, while median prices for van and reefer trailers rose an impressive 128%.
Demand for agricultural machinery surged, especially in the first half of the year, with sales of used inventory increasing by 28% on FY2021. Farmer spending confidence thrived, buoyed by strong commodity prices, near-record harvests and the Federal Government’s Temporary Full Expensing Program.
The construction sector continued to weather challenges in 2022, most notably shortages of skilled and unskilled labor, plus the rising cost of materials. Demand for construction services will remain strong across the nation, and the supply of new equipment is expected to improve somewhat in 2023, with Japan’s big three OEM suppliers of construction equipment starting to get regular stock coming through as their factories recover from COVID.
“We are delighted to see that our customers have leveraged the strength of the used equipment market to capitalise on the seller’s market. We recorded significant increases in registered bidders, sellers, lots sold, and buyers purchasing power in FY22, which is a testament to the confidence our customers have in Ritchie Bros.’ ability to operate in all markets regardless of economic conditions,” said Cody Watson, APAC Sales Director.
Despite these positive trends, rising inflation, interest rates, fuel and energy prices, as well as labor shortages and supply chain disruptions remain domestic issues of concern for the industry. On a global level, looming recessions in overseas nations, the war in Ukraine, trade uncertainty with China and skyrocketing shipping prices are all factors which put upward pressure on the cost of doing business and lead to a forecasted increase in insolvency across all sectors in 2023.
2022
ANNUAL
MARKET TRENDS REPORT
AUSTRALIA
DOWNLOAD THE REPORT
Download our Annual Market Trends Report 2022 and gain insight into the Australian used equipment market.
2022
Download Report
