More Construction Employment Leads to Equipment Sales

Thursday, February 26, 2015 | Blog

This increase in construction jobs should lead to the need for more construction equipment deployed in the field. The implied advantage of purchasing used construction equipment when tooling your company is an inherent cost benefit vs buying new equipment. Typically, used equipment is less expensive than new equipment, but used equipment also comes with a shorter useful life. So just like buying a car, the overall cost of ownership vs productive life needs to be thoroughly analyzed. Overall costs vs immediate costs are not always fully considered. Another factor to consider is that new equipment might come with a lead time, where buying your equipment used at auction can provide immediate access to functional machinery.

Reselling your own used equipment at the end of a project throws in the concept of salvage value. Depending on supply and demand factors, sometimes you can get the same or more than you paid for the same used machine! This, even after you have used the machine for and completed a particular project (and expensed it to the project!).   Savvy construction company owners are constantly moving equipment in and out of their fleet, often capturing this arbitrage in price. Similarly, these same owners have realized the power of the auction sale is a reliable tool to achieve these results.