Used heavy-duty construction inventory continues fall

Large construction projects and strong rental demand buoyed the used construction equipment market in March, but tariffs could challenge dealers as buying activity stalls.  

Used construction inventory continued to fall month over month in March, driven by large commercial developments including infrastructure projects and data centers.  

But contractors who have been looking to upgrade may hang onto their assets amid uncertainty surrounding President Donald Trump’s tariffs, Sandhills Global Equipment Lease and Finance Manager Jim Ryan told Equipment Finance News. This would slow investment, especially among independent contractors and smaller construction companies, he said. 

“You may see it go back somewhat to the COVID-type years to where they couldn’t get equipment, so they’re just going to hang onto it for an extra year,” he said. “When it does hit the market again, it’s going to have higher-than-average hours used on that year-type of equipment just for the simple fact that they’ve kept them.” 

After keeping equipment for as long as possible, businesses may be forced to take losses on trade-ins if dealers accept them.  

Meanwhile, construction equipment dealers grappled with lower year-over-year asking values last month despite reduced inventory, according to Sandhills Global’s April 7 report on used equipment trends. 

Used heavy-duty equipment  

• Inventory fell 3.3% YoY and 0.3% MoM; 
• Asking values fell 3.9% YoY and 0.6% MoM; and 
• Auction values decreased 2.9% YoY and 0.2% MoM. 

Used medium-duty equipment 

• Inventory jumped 5.9% YoY, but declined 1.3% MoM; 
• Asking values fell 4.1% YoY, but rose 1.2% MoM; and 
• Auction values dropped 3.4% YoY, but climbed 1.5% MoM. 

Used lifts 

• Inventory was up 17.9% YoY and 3.5% MoM; 
• Asking values decreased 9.7% YoY and 2.5% MoM; and 
• Auction values fell 6.2% YoY and 0.9% MoM. 

Rental market still going strong 

While residential construction has slowed, equipment rentals are supporting growth in other construction sectors, Chris Hill, strategic customer representative of mission critical at Sunbelt Rentals, told EFN. 

“With the new administration, sectors like infrastructure, semiconductors and power have received a lot of publicity and funding,” he said.  

“The opportunity to show the power of Sunbelt in each of these sectors is abundant. All our verticals, from ground protection for transmission lines to our industrial division with its tools for bridges and tunnels, present rental opportunities. Every vertical within Sunbelt Rentals power has ample opportunity to provide rentals.” 

The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.