☕ January 2025 EquipmentWatch Market Report

Hey 👋, Good morning, rental pros!

The January EquipmentWatch Market Report reveals dynamic shifts across our key sectors. Even as the U.S. celebrates 48 consecutive months of job growth, our equipment market faces volatility that demands strategic adjustments.

Construction: Stuck in Neutral

Despite a booming job market, construction equipment values are slipping. Fair Market Value (FMV) dropped 2.9% month-over-month (MoM) and 2.4% year-over-year (YoY), while Forced Liquidation Value (FLV) plunged 19.8% MoM. This softened resale market indicates short-term demand is sluggish. However, upcoming infrastructure projects could spark a rebound later in 2025.

Lift/Access: A Market in Flux

In the lift/access sector, FMV increased 5.5% MoM but remains 2.5% lower YoY. Rental usage declined 25.1% MoM, and forced liquidations surged by 38.1% MoM—clear signs of market instability. On the bright side, technological innovations such as Caterpillar’s Next-Gen Telehandlers, equipped with Product Link Elite telematics, are delivering real-time fleet insights to help optimize operations and reduce downtime.

Agriculture: Mixed Signals

Agricultural equipment continues to retain strong value, with FMV up 7.6% MoM. Yet, usage fell 21.8% MoM, and Deere’s announcement of its 15th layoff this year underscores mounting economic pressures in the sector.

What’s Next for Rental Companies?

Now more than ever, rental companies must monitor pricing trends, invest in digital tools like telematics, and watch secondary market signals to fine-tune fleet management.

Full Report: EquipmentWatch Market Report

If you enjoy the content of the Rental Chronicles, please share it.