Strong equipment values here to stay, says Euro Auctions
By Grant Collinson
30 January 2012
Used equipment vendor, Euro Auctions, has
predicted current strong resell values in plant and construction
equipment to remain steady in 2012.
Jonnie Keys, general manager of the specialist
plant, commercial, and industrial equipment auctioneers, said he
expected the prices of good second-hand equipment in the UK to
continue to hold for the foreseeable future, at least until
manufacturing comes up to speed.
He said: “In 2011, 12 to 24 month old
equipment was reaching premium prices, closely followed by good 24
to 48 month old stock. This trend is likely to increase.”
Keys pointed to a number of major construction
projects in the UK, which, he said, would help to ensure plant does
not stand idle and sustain market demand.
Plant demand in Europe may be affected by a
strong sterling this year which would leave the UK more expensive
than the rest of the continent, he suggested.
Keys also predicted strong export sales in
2012 as economies around the world recover.
“With the strengthening economies around the
globe, machinery from the UK and Europe will continue to leave
these shores for BRIC countries, Australia, South East Asia, South
America and the USA,” said Keys.
Demand for plant and construction equipment
will be particularly strong in Australia, he said: “Australia may
well be the star of 2012, continuing to demand good quality
late-years equipment and machinery.”
Infrastructure projects in South America and
Russia would also lead to steady growth in equipment demand in
2012. In addition, Keys said South Africa was the next emerging
economy and one to watch this year.
He also identified a potential demand hike
Tunisia, Libya and Egypt in the aftermath of 2011’s Arab Spring:
“In North Africa it will be a case of waiting and seeing if peace
holds, then wheel loaders, generators and batching plants should
all be needed during the rebuild process.”
Keys, whose company has auction sites in
Northern Ireland, mainland UK, Germany, Spain and Australia,
admitted predicting the resell market was difficult and warned
external, natural and economic factors could change the landscape
overnight.
grant.collinson@vrlfinancialnews.com