Ritchie Bros. sees unprecedented activity at its online auctions

Long lead times for new equipment and exceptionally high productivity in key industries have driven demand for heavy machinery at Ritchie Bros. at unprecedented levels and equipment owners are benefiting. In 1Q21, Ritchie Bros. increased its website traffic by 47% year over year, while bidder registrations increased by 49%.

“We are currently seeing construction equipment price performance at our European auctions on average 10-15% better than a year ago,” said Jeroen Rijk, Managing Director of Ritchie. Bros. EMEA and Latin America. “I have never seen anything like it in my 25 years working in the industry.”

Mr. Rijk continued: “Ritchie Bros. has always been at the forefront of international equipment supply and demand. We’ve seen massive demand spikes in the past, but they’re normally regionalized. This is now a global trend with increased activity from bidders around the world, from nearly every vertical we serve. Construction, agriculture, mining, transportation or other industries; the demand is incredibly strong in all areas. It’s an exciting time if you have equipment to sell.

In addition to market conditions, Ritchie Bros. also attributes the increase in buyer activity to the fact that auctions provide quick access to off-the-shelf equipment and the company’s online timed auction system, which is used exclusively in the region EMEA since March 2020, made bidding easier and easier.

A closer look at the data shows:

  • Excavators, a typical piece of machinery used in construction and mining, saw median auction prices in Europe increase by 23%, averaging €39,858 per item. International competition has intensified on these excavators, with 12% being sold to foreign buyers (7% same period in 2020). The main buying countries were the Netherlands, the United Kingdom, Romania, Poland and Spain.
  • The median price of wheel loaders sold at Ritchie Bros. in Europe increased by 5.6% in 1Q21 (compared to 1Q20), averaging €25,012 per item. The main purchasing countries for wheel loaders were the Netherlands, Germany, Spain, Italy and Poland.

“With our international digital marketing program running at full steam to attract buyers, it’s not uncommon for our auctions to see young, low-time items selling at high price points,” Rijk continues. “Not just for our non-reserved scheduled auctions, but we also see this with our reserved solution, Marketplace-E. Using advanced data tools, we closely monitor market movements. With high prices, this continues to be extremely favorable for turning any type of machine into cash.

Read the article online at: https://www.worldpipelines.com/special-reports/11062021/ritchie-bros-sees-unprecedented-activity-at-its-online-auctions/