The most recent industry report from Rouse Asset Services, issued the last week of October, shows that for the month ending Sept. 30, 2012, the Rouse Index of Orderly Liquidation Values (OLV) decreased 0.2 percent, compared to August values. For the six months ending Sept. 30, average index values were unchanged. The Rouse OLV measures values for used equipment in 14 major rental equipment categories.
The October report also showed that September auction sales of rental and construction equipment tracked by Rouse averaged 6.8 percent lower than in August. The survey included 3,747 units worth a total value of $106.3 million, sold at 28 auctions across North America. The sales brought $99.1 million in gross auction sales.
The report tracks rental rates but from two months back, so the October report showed that July rental rates increased 1.1 percent compared to June, and 8.4 percent compared to July of 2011.
Values for AWPs varied by type
The 14 kinds of equipment covered by the Rouse Report include four categories on which Lift and Access reports: articulating-boom awps, telescopic-boom awps, scissor lifts, and high-reach forklifts.
Rouse expresses OLV as a percentage of replacement cost (average cost paid for a new equipment by large rental companies and dealers) for the average age of equipment sold within a category. During September, the OLV for articulating boom lifts dropped 1.9 percent, compared to August, but rose 1.1 percent 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 stayed even with August values, but dropped nine-tenths of a percent over the past six months. Average age of the equipment sold in this category was 102 months.
Scissor lift OLVs rose eight-tenths of a percent in September, compared to August, but dropped three-tenths of a percent over the past six months. These machines averaged 84 months of age.
High-reach forklifts averaged 79 months of age and showed a rise of 2.5 percent in OLV versus August. Over the past six months, however, their average value has dipped by one-half percent.
Average age for all the equipment in the rental industry, not just units sold in the last month, stood at 51.5 months for articulating boom lifts, 55.7 months for telescopic boom lifts, 57.3 months for scissor lifts, and 57.2 months for high-reach forklifts.
Of the 14 kinds of equipment covered by Rouse, aerial work platforms represented 24 percent of the new machines purchased by rental companies and dealers during September. High-reach forklifts made up 30 percent of the purchases, and cranes were 2 percent.
Of the 14 kinds of equipment sold by rental companies and dealers, aerial work platforms were 34 percent and high-reach forklifts represented 12 percent.
Utilization through July ahead of 2011
Tracking utilization, Rouse reports that July utilization of articulating boom lifts was 69.9 percent, off one-half percent from June, but still up 5.5 percent overall year to date.
Telescopic-boom utilization stood at 70.8 percent, down 1.3 percent from June, but up 7.8 percent year to date.
Scissor-lift use rose six-tenths of a percent, month-to-month, reaching 66.5 percent. Usage was also up 3.8 percent year to date.
Likewise, high-reach forklifts also saw usage rise by half a percent, to 79.9 percent, month to month, and by 8 percent year to date.
Rental rates rose through July, too
Rental rates were also up from June to July and for the first six months as a whole. Articulating boom lift rental rates rose nine-tenths of a percent for the month and six percent for the first half year. Telescopic-boom rates were up 1.5 percent month to month and 7 percent for the first half of the year. Scissor lift rental rates climbed 1.6 percent from June to July, and were up 5.0 percent compared to January. Rental rates for high-reach forklifts rose 1.5 percent for the month and 8 percent for the first six months of 2012.