Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/457078
New sales trends Although our 2014 tally does not in- clude December, large-size excavating contractors in our sample were clearly financing more machines in 2014 than in 2013. The large-size segment saw a whopping 47 percent increase through November 2014 compared with all of 2013. Medium-size contractors financed 26 percent more machines during the same period. Small-size contractor buys, however, took a dive in 2014, decreasing by almost 35 percent. Past history with this sample indi- cates the bonus depreciation, enacted in mid-December, may not have a sig- nificant impact in the final 2014 tally. The 2014 bonus depreciation allowed EquipmentWorld.com | February 2015 27 EquipmentWorld.com | February 2015 27 contractor of the year | by Marcia Gruver Doyle | MGruver@randallreilly.com continued In our sample, Cat's popular 336E L excavator appeared on the new top list of all three sizes of contractors. While contractors seem more willing to consider multiple brands when purchasing new, the top financed used chart was dominated by Cat machines, with the exception of the Volvo A40E articulated truck. Top models business owners to take an ad- ditional 50 percent depreciation above the Section 179 deduc- tion on construction equipment bought during the year, lowering their taxable income. This depre- ciation also was in effect in 2012 and 2013, and yet there was only a pronounced buying surge in December in our sample group in 2012 and then only with the large-size contractors. (It must be noted, however, that con- tractors knew throughout these years they could apply the bonus depreciation to any new pur- chases made that year; in 2014, this knowledge came so late the impact was probably muted.) Used sales trends Used equipment buys by our excavating contractor slice were much more erratic, generally trending downward for the past two years. Financing a total of 1,206 used machines during the past 5 years, medium-size contractors edged out small-size contractors, who financed 1,061 machines. Large-size contrac- tors were the least likely of the three groups to financed used machines, at 801 units. Since the bonus depreciation only applied to new purchases, it will have no impact on 2014 financed used purchases. However, Congress also reinstated the Section 179 deduction in the same bill as the bonus depreciation, which could be applied to used machine buys. NEW EQUIPMENT: Top 5 financed models* Under $5 M $5 to $15 M $16 M + 1 Bobcat S570 skid steer (23) Deere 850K dozer (34) Mack Granite GU713 on-highway truck (37) 2 Cat 336E L excavator (24) Cat D6T XL dozer (25) Cat 336E L excavator (19) 3 Volvo A40F articulated truck (20) Cat 336E L excavator (25) Cat D6T XW dozer (17) 4 Komatsu PC360LC-10 excavator (18) Deere 624K wheel loader (18) Cat 936D wheel loader (14) 5 Deere 9510R tractor (15) Cat D6T LGP dozer (13) Cat 349E L excavator *New at time of finance; some models may not be current. Number of units, self-propelled machines, 2010-Nov. 14 USED EQUIPMENT: Top 5 financed models* Under $5 M $5 to $15 M $16 M + 1 Cat D8T dozer (27) Cat 140H motor grader (18) Cat 740 articulated truck (34) 2 Volvo A40E articulated truck (23) Cat D6R XL dozer (18) Cat D8T dozer (32) 3 Cat 725 articulated truck (22) Cat 330D L excavator (18) Cat D6T XL dozer (15) 4 Cat 140H motor grader Cat D6T XL dozer (18) Cat 627G scraper (14) 5 Cat 330D L excavator Cat 730 articulated truck (15) Cat 623G scraper (13) *Number of units, self-propelled machines, 2010-Nov. 14 USED EQUIPMENT: 5-year sales trends 400 350 300 250 200 150 100 50 units 2010 2011 2012 2013 2014* Under $5M $5-15 M $16 M + *Through Nov. 2014. Number of financed units. NEW EQUIPMENT: 5-year sales trends 400 350 300 250 200 150 100 50 units 2010 2011 2012 2013 2014* Under $5M $5-15 M $16 M + *Through Nov. 2014. Number of financed units.