In the bustling world of construction, the used crane market is an indispensable asset. Acquiring a crane, whether for a large-scale project or a smaller endeavor, is a significant investment. The used crane market offers a spectrum of opportunities and challenges for buyers and sellers alike.
Exact Crane & Equipment President Jack Swan contends that the trajectory of the used crane market is promising, and with an expected growth in infrastructure projects, the demand for cranes will increase.
While trying to navigate the market of new and used equipment, an insider perspective is valuable. Jack Swan, owner and president of Exact Crane & Equipment, is a crane industry veteran. About 70 percent of the business at Exact Crane is used cranes. As a Tadano and Manitex dealer, Exact Crane also sells new cranes, giving Swan a keen market perspective. So how does Swan characterize the used crane market?
“Entering 2024, the used market has been holding steady with a high number of sales, despite economic instabilities and international tensions,” Swan said. “In 2020, the global crane industry was hit with significant economic shifts due to the COVID-19 pandemic. The market is still recovering.”
The pandemic unleashed challenges across global industries, and the crane market was no exception. Supply chain disruptions have rippled through the crane sector, impeding the flow of new cranes to the market, he said.
“As manufacturers’ efforts to ramp up production and streamline supply chains are underway, the echoes of disruption still reverberate,” Swan said. “Delays persist, although to a lesser extent, hindering the seamless replenishment of new cranes in the market.”
Steadfast and resilient
Amidst the turbulence of the new crane market, the used crane sector stands steadfast and resilient, Swan said.
“This can be attributed to a confluence of factors, the most notable being the intersection of higher interest rates and ongoing supply chain challenges facing the new crane market,” he said. “In spite of these issues, the used market has continued to thrive, but with its own challenges. Overall prices have gone up in accordance with supply and demand, but with the inflated interest rates, the used market has shifted.”
In general, Swan said “early to late 2000s models” remain available, though at a slightly higher cost than before. But the landscape has shifted on the good, late model units.
“The current market is making it harder to find good, late model cranes (2018 models and newer) at an equitable price,” he said. “This scarcity underscores the broader trend of supply constraints plaguing both the new and used market, although in different capacities.”
Price increases
According to Swan, the work is there, but owners are less inclined to relinquish good equipment based on the availability and pricing of new cranes.
“In the last two to three years, new cranes have increased in price around 15 to 20 percent,” he said.
The influences of interest rates, online advertising/auction sites, political and global influences as well as the supply and demand of customers have all been factors to consider in weathering the current environment. Across the industry – all terrains, boom trucks, carry decks, crawlers, rough terrains and truck cranes – all seem to have been affected. Exact Crane sells, buys and (bare) rents a range of cranes, and Swan said he has seen first-hand the uptick in demand for older equipment, especially with the drop in the late model availability.
Recent trends in the used crane market have reflected a blend of traditional practices and emerging dynamics. One notable trend is the increasing accessibility to online auction platforms. This rise has given buyers another avenue to purchase and sell equipment. But thus far, these portals don’t appear to have a significant effect on the used crane market.
“While the auction platforms offer convenience, transparency and a broader reach, they also have shown an increase in the number of older models being sold at a higher price point,” Swan said. “For example, a 60-ton rough terrain crane that was priced at $60,000 a year ago is now $85,000 to $95,000. In addition, the inventory being advertised on these auction platforms, shows the disparity of late model cranes.”
Looking ahead, the trajectory of the used crane market remains promising. With the construction industry and infrastructure projects experiencing steady growth, the demand for cranes, both new and used, will continue to grow. The influx of inventory may continue to be a challenge, but as new crane availability increases, the used sector will see late models returning to the market.
Positive outlook
In conclusion, while challenges persist, the used sector remains resilient with a strong outlook. As the demand for heavy machinery continues to surge, the used crane market stands poised to play a pivotal role as a linchpin in the broader construction ecosystem.
