We revisit our discussion on wheel loader values, this time in mid-2021, with Mitch Helman of Sandhills Global. #WheelLoaders #Valuation #Appraisals #Auctions #BlackbirdTV
About this segment of Blackbird TV
Guest: Mitch Helman, Sales Manager, Sandhills Global. To learn more about our guest, visit Sandhills.com, or call 402-458-4506.
Recorded: July 23, 2021
Published: August 17, 2021
Segment transcript
Joining me is Mitch Helman from Sandhills Global, the big behemoth in the data and advertising business. Mitch, how are you? David, how are you? Mitch, we want to talk about wheel loaders today and we want to talk about value trends. You sent me a report last time we talked about this a few months ago. Everything was on fire from Covid and prices were craz and you couldn’t get inventory. And in this report, let’s cut right to it, page five. Look at these inflection points. It’s happening now. Absolutely. About the last 12, 13 months, you know, since Covid hit, manufacturing shut down. You know, inventory levels have been, you know, depleting the used inventory levels, I mean, just because new buyers can’t get their hands on the used of the used market. Everything’s been flying off the shelves. Values have been rising like crazy. And, you know, it wasn’t until last month that we’ve seen and we’ve heard from the from the actual dealers that some new inventory is starting to trickle in and there’s some used equipment starting to hit the lots. And it shows in those market reports is there’s been an uptick, you know, in the wheel loader report. And we’ve seen it across other segments as well with the excavators and and dozers as well. And it shows in your inventory turnover as well. The page six report, look at this graph. Things are starting to turn. And I’m a data junkie. I just I go crazy when I look at these kinds of numbers, because it helps us when we do evaluations that we value fleets if we value specific trucks. And I can put these in reports. Talk to me about this. Page six, the trends are changing. Yeah. You know, and it kind of goes right along with the inventory levels starting to climb. You know, a month ago, you know, we’ve been leading up to, you know, just under two out of 10, you know, wheel loaders selling per month, you know, on the site where it’s dropped, you know, how to drop drastic drop down to just over one, you know, which is a direct reflection of inventory levels starting to climb more inventory. You know, there’s there’s more volumes to change those averages. Yeah, and that’s simple supply and demand. On page 12, when you break it down by age group and horsepower, no surprises here. Everything, you know, things are turning up and the older models are becoming far more available. Why? Why, why do we have more older models than the newer models? Yeah, you know, it’s it’s a pure usage thing. You know, guys are running equipment longer. You know, as this used trickles into the market, you’re going to see the last late model, you know, lower houred equipment because it’s this late model, you know, of older equipment has been been running longer. You know, even in the even if it’s just been a year, they’ve been they’ve been stressing it, you know, put more hours on it because the new hasn’t come. And so the used market is going to get get hit with some more used machines out there. Do you think that the change in price in the opposite direction is going to be as steep as the change it was that we’ve seen in the past year, Mitch, or is it going to level out at a higher level? No, I, I would anticipate it’s going to as inventory climbs, it’s going to because I think it’s going to it’s going to climb quick as these new orders start hitting the dealers lots. You know, their prices are going to follow. It’s a cyclical trend. And as fast as they went down and inventory levels and up and pricing, it’s going to crisscross the other way. Clawing our way out of the pandemic with Mitch Helman from Sandhills. I can’t thank you enough, Mitch. Have a great day. David, we’ll see you. Thank you.