As delays in global original equipment manufacturer (OEM) production and international freight disruptions create headaches for the quarrying sector, the industry is turning to the second-hand equipment market.
Australia’s 2020–21 budgets had a focus on an infrastructure-led recovery, boosting demand for quarry materials. This, combined with superheated consumer spending in 2021 and the Federal Government’s Instant Asset Write Off Scheme, is keeping used equipment pricing unusually high.
Ritchie Bros. regional sales manager Dale Spedding said national online auctions filled a much-needed gap in the quarrying sector.
“This year continues to be a seller’s market for quarrying equipment, with positive price trends across nearly every single asset category,” he said. “Demand for quarrying equipment is the highest we’ve seen it.”
Established in 1958, Ritchie Bros. is a global asset management and disposition company that offers customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. The company operates in a number of sectors, including construction, transportation, agriculture, energy, oil and gas, mining, and forestry.
According to Spedding, the effects of major disruptions caused by the COVID pandemic are still being felt.
“At the beginning of 2020, the pandemic caused the OEMs to stop manufacturing for several months and we are still experiencing the impact of that,” he said.
“While used quarry equipment sales volumes fell in 2021, high price performance was achieved. Median pricing of jaw crushers is up 125 per cent in 2021 compared to 2020, and median pricing of screen plants is up 14 per cent in 2021 compared to 2020, but on average we’ve seen a median price rise of eight per cent for quarrying equipment.
“We observed falling volumes in almost all quarrying asset categories in 2021, while prices sharply increased.”
Spedding said Ritchie Bros. has been able to provide a level of certainty amid what has been a time of limited industry security.
“As the OEMs have suffered, there is a global supply chain gap for equipment, particularly in the quarrying industry. Ritchie Bros.’ global connections in sourcing equipment, coupled with our ability to procure equipment across borders and territories, has filled the gap in the past year,” he said.
“Our customers can sell equipment from their yard or one of our dedicated sites in Brisbane, Geelong, Perth, and Adelaide, Mittagong or Dubbo and participate in
our national online auctions. In this way, Ritchie Bros. can attract a much larger buying audience and achieve strong price performance for consignors, while driving record buyer demand through national marketing campaigns.
For those unsure about buying equipment – the heart and soul of their quarrying operations – online, Ritchie Bros. does everything it can to package peace-of-mind with quality equipment.
“We have adapted to ensure our customers are confident they source the equipment they need easily and efficiently. We offer inspection reports, photos, and service records so our buyers feel comfortable prior to bidding online.”
Ritchie Bros.’ diverse selling channels span the globe, including Ritchie Bros. Auctioneers, the world’s largest industrial auctioneer that offers live events with
online bidding; IronPlanet, an online marketplace with featured weekly auctions (which also provides the exclusive IronClad Assurance equipment condition certification); Marketplace-E, a controlled marketplace offering multiple price and timing options; Mascus, a leading European online equipment listing service; and Ritchie Bros, Private Treaty, which privately negotiates sales.
The company’s suite of multichannel sales solutions also includes Ritchie Bros. Asset Solutions, a complete end-to-end asset management and disposition system.
For more information, visit rbauction.com
This feature appeared in the April issue of Quarry Magazine.