Rouse Report: November Equipment Values Up 5.0% | Daily Construction News

The December industry report from Rouse Asset Services shows that for the month ending Nov. 30, 2012, the Rouse Index of Orderly Liquidation Values (OLV) increased 0.5% from October’s values. For the six months ending Nov. 30, average index values dropped 0.9%.

The Rouse Report measures key information about 14 kinds of major rental equipment, four of which are covered by Lift and Access: articulating boom lifts, telescopic boom lifts, scissor lifts, and high-reach forklifts.

Rouse’s December report also showed that November auction sales of the equipment it tracks averaged 1.7% lower than in October. The survey included 2,465 units worth a total of $67.0 million, sold at 22 auctions across North America. The auctioned equipment brought $65.8 million in gross sales.

The report tracks rental rates, but from two months back. The December report showed that September rental rates increased an average of 0.3% from August, and rose 7.1% compared to September 2011 rates.

 

Liquidation values varied by equipment type

Rouse expresses OLV as a percentage of replacement cost (average cost paid for new equipment by large rental companies and dealers) for the average age of equipment sold within a category.

During November, the OLV for articulating boom lifts dropped 0.1%, compared to October, and 2.5%, compared to six months before. The average age of articulating boom lifts sold during the period was 89 months.

The OLV of telescopic boom lifts rose 0.3%, compared to October values, but dropped 3.3%, compared to May. Average age of the equipment sold in this category was 102 months.

November scissor lift OLVs dropped 0.3% from October and were down 1.8% compared to six months earlier. These machines averaged 84 months of age.

High-reach forklifts rose 0.3% for the month, but dropped 1.2% over the past six months. Their average age was 79 months.

Average age for all the equipment in the rental industry, not just units sold in the last month, stood at 52.2 months for articulating boom lifts, 55.9 months for telescopic boom lifts, 57.3 months for scissor lifts, and 55.7 months for high-reach forklifts.

Of the 14 kinds of equipment covered by Rouse, aerial work platforms represented 30% of the new machines purchased by rental companies and dealers during November. High-reach forklifts made up 19% of the purchases.

Of the 14 kinds of equipment sold by rental companies and dealers in November, aerial work platforms were 35%, and high-reach forklifts represented 14%.

 

Utilization through September ahead of 2011

Rouse reports that September utilization of articulating boom lifts was 72.6%, up 2.1% from August, and up 10.3% compared to March.

Telescopic-boom utilization stood at 73.2%, up 1.8% from October, and up 10.6% from March.

Scissor-lift use fell to 66.2%, down 1.1% from October, but still up 4.7% compared to March.

High-reach forklift use rose 0.6%, to 80.7% for the month, and was also up 8.8% compared to March.

 

Rental rates up slightly

Rental rates for all four categories of equipment rose from August to September. Articulating boom lift rates rose 0.1%. Telescopic-boom rates were up 0.3% percent. Scissor lift rental rates went up 0.2%, while high-reach forklift rates rose 0.8%.