Equipment Auction Market Strong Despite Challenged Economy - PR.com
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Equipment Auction Market Strong Despite Challenged Economy
“In today’s troubled economy, the equipment auction sector continues to hold strong,” said NAA spokesman Chris Longly. “Owners of heavy equipment and farm machinery use auctions to turn their assets into cash while buyers utilize auctions to find valuable assets at fair market value.”
Kansas City, MO, June 24, 2009 --(PR.com)-- Equipment auction market strong despite challenged economy
National research indicates decrease in all other auction categories.
According the National Auctioneers Association, overall auction revenues were down almost $2 billion dollars in 2008 compared to the previous year. The only area experiencing any growth was the agricultural and heavy equipment categories.
“In 2008, the fastest growing sectors of the live-auction industry were agricultural and machinery and equipment auctions and residential real estate,” reported an NAA press release, “Three sectors of the industry witnessed significant decreases last year, most likely the result of a poor performing economy: Art, antiques and collectibles, automobiles, and personal property.”
According to the NAA’s research, the only auction category to experience growth was agricultural machinery & equipment with over $300 million dollars more gross sales revenue in 2008 over 2007. All other areas experienced declines in 2008, but were still higher when compared to five years prior.
Some companies responded to the shifting market by growing their capabilities to serve construction, ag and heavy equipment sellers. Purple Wave Auction in Manhattan, Kansas, launched a new company division to springboard off of its string of major equipment auctions and to capture the market growth. Since December 2008, Purple Wave’s sales volume increased over 40 percent in the agricultural, construction and heavy equipment asset categories.
“We’re seeing more opportunities and experiencing even greater success for our sellers in the equipment auction market,” said Purple Wave CEO and Founder Aaron McKee.
Over $31 billion dollars of equipment was sold by NAA members in 2008. Purple Wave believes the figure can grow higher in 2009 if more sellers chose auctions over the traditional secondary market.
“Our equipment division is made up of professionals who have worked for companies like Caterpillar, John Deere, and Martin Farm Power,” said McKee, “They understand the market and know what will create a successful outcome for clients with equipment to sell.”
For many sellers, speed and convenience are the main reasons why they are choosing auctions to sell their equipment. And, partnering with an experienced and professional auction firm is certainly helpful when it comes to getting good recoveries.
“We needed to dispense of construction equipment quickly to make room for newer inventory,” said Tony Shore of Tasco Equipment, who has hired Purple Wave Auction recently. “Considering the condition of the assets and the market, the auction did as good as we could ever expect.”