Impacts of recent rise in diesel prices are not noticeable in latest market data
Getting through the summer construction season, even with a boom in data center work, has not translated into a spike in used equipment prices, according to the latest data from industry analyst EquipmentWatch. But affordable used iron has not stopped original equipment manufacturers from booking some record sales numbers in recent months.
“Construction [used equipment] has followed the seasonal trend [this summer], but overall prices are down compared to 2024, and 2025, and why that is we are not entirely sure,” says Brendan Gallagher, data analyst at EquipmentWatch. “It may just be there is older equipment on the market.”
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The EquipmentWatch numbers support that view, with a 18.22% drop in construction equipment values at auction in August versus the same period in 2024, and a 6.97% rise in equipment age. The demands of hyperscale data center developers now carrying much of the U.S. construction sector have not led to fierce competition for used equipment.
“Auction values are following yearly trends [for construction and lift] but overall they are declining,” adds Gallagher, who sees prices continuing to slide. “It could be there are more machines on the market, or people are being more selective on older equipment and the hours on it.”
Concerns earlier this year about the impact of tariffs didn’t have much impact on demand. “Even the early spike this year [in prices] was not as high as usual,” he notes. While U.S. tariff policy remains unsettled, some manufacturers such as Volvo Construction Equipment have advanced plans to onshore more assembly to avoid import surcharges (see p.75).
Prices for used machines may have leveled out, but that does not signify there is not aggregate demand for construction equipment. In some cases, it may be that builders of data centers and those in other active market sectors are opting to spring for new machines.
That is certainly seen in the second quarter numbers from Caterpillar, published in early August. The Irving, Texas-based manufacturer posted its largest-ever sales volume in the second quarter, with $20.5 billion in sales and revenue, a 24% increase year-over-year.
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Caterpillar saw its sixth straight quarter of growth in sales of construction equipment in the U.S., up 22%. CEO Joe Creed credited that to “very strong rental fleet loading and equipment sold into non-residential and residential construction,” speaking on an Aug. 4 results call with analysts. Specifically, this past quarter was the start of the firm’s Major Projects joint venture with its dealer network to support large infrastructure, energy and data center efforts.
The large-volume approach represents a major shift for Caterpillar in how it will support megaprojects directly with rental fleets of heavy equipment.
Sales of new machines also buoyed John Deere, with the Moline, Ind.-based manufacturer reporting $3.6-billion in sales for its construction and forestry division in its third quarter. On an Aug. 20 earnings call, the firm said net sales in the division were up 18% year-over-year, and it forecasts that they will continue to be strong through the rest of the year, up 20% in fiscal 2026 compared to 2025. Deere attributed these strong numbers to demand from data centers and other projects, as well as strong factory output.
Related links:
Economics: Data Centers Spur Increase in Starts as Residential, Industrial Work Declines
Confidence Index: Construction Industry Executive Confidence Dips Slightly in Q3
Labor: Wages Remain High as Shortages in the Labor Market Continue
Equipment: Prices for Used Equipment Show Stability, While New Machines Sees Jump in Sales
