Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/860257
August 2017 | EquipmentWorld.com 32 W hile much of the sleeper-cab used truck market was spiraling downward earlier this year, used vocational trucks have been a steady bright spot for truck dealers. "Used vocational trucks are strong," says Craig Kendall, specialty markets manager for The Pete Store and current Used Truck Association president. "We are encouraged by this market, but we're not quite at pre- recession levels." "As a group, used Class 8 straight trucks (excluding tractors), were up 5 percent in 2016 through April 2017," says Steve Tam, vice president of ACT Research, a market intelligence firm that tracks highway vehicles. "They did much better than their sleeper counterparts, which were down 10 percent or more but are now finally starting to brighten." Taking a deeper dive into his numbers, Tam says he was surprised to see that dump trucks were down within this vocational slice, especially compared with crane, mixer and vacuum trucks. "Dumps usually tend to be rainmakers for dealers, so I'm not sure what's driving that," he says. "The demand is sure strong, so it could be a repositioning." In contrast to dumps, truck-mounted cranes were up 30 percent during the 16-month period, which Tam says could mean the energy sector's pulse is reviving. "Oil field players are now back in the market and looking at the supply of used trucks," he says. Kendall says he's heard of a 100-unit new truck buy from a fracking client, another sign the energy sector is picking up. During the same 16-month period, mixers were up 25 percent and vacuum trucks were up 15 percent. "In general, it's a buyer's market," Tam says. "With prices being down, you can save money and buy younger used equipment. I think it would behoove the potential buyer to take a look at the used truck market right now." Since new truck sales eventually drive used sales, Tam also sees growth instead of replacement being the primary new truck sales driver. "My sense is that for every 10 new trucks people buy, they are only sending one to the used truck market," he says. "That would suggest a smaller supply and equivalent demand on the used side in the future. So if you're going to buy, the sooner the better, because it looks like the market will tighten up." used equipment report | continued Used vocational trucks may not remain a buyer's market for long By Marcia Gruver Doyle and Tom Jackson Washington State DOT