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January 30, 2012updated 12 Apr 2017 4:09pm

Strong equipment values here to stay, says Euro Auctions

Jonnie Keys, general manager of the specialist plant, commercial, and industrial equipment auctioneers, said he expected the prices of good second-hand equipment in the UK to continue to hold for the foreseeable future, at least until manufacturing comes up to speed.

By Grant Collinson

Used equipment vendor, Euro Auctions, has predicted current strong resell values in plant and construction equipment to remain steady in 2012.

Jonnie Keys, general manager of the specialist plant, commercial, and industrial equipment auctioneers, said he expected the prices of good second-hand equipment in the UK to continue to hold for the foreseeable future, at least until manufacturing comes up to speed.

He said: “In 2011, 12 to 24 month old equipment was reaching premium prices, closely followed by good 24 to 48 month old stock. This trend is likely to increase.”

Keys pointed to a number of major construction projects in the UK, which, he said, would help to ensure plant does not stand idle and sustain market demand.

Plant demand in Europe may be affected by a strong sterling this year which would leave the UK more expensive than the rest of the continent, he suggested.

Keys also predicted strong export sales in 2012 as economies around the world recover.

“With the strengthening economies around the globe, machinery from the UK and Europe will continue to leave these shores for BRIC countries, Australia, South East Asia, South America and the USA,” said Keys.

Demand for plant and construction equipment will be particularly strong in Australia, he said: “Australia may well be the star of 2012, continuing to demand good quality late-years equipment and machinery.”

Infrastructure projects in South America and Russia would also lead to steady growth in equipment demand in 2012. In addition, Keys said South Africa was the next emerging economy and one to watch this year.

He also identified a potential demand hike Tunisia, Libya and Egypt in the aftermath of 2011’s Arab Spring: “In North Africa it will be a case of waiting and seeing if peace holds, then wheel loaders, generators and batching plants should all be needed during the rebuild process.”

Keys, whose company has auction sites in Northern Ireland, mainland UK, Germany, Spain and Australia, admitted predicting the resell market was difficult and warned external, natural and economic factors could change the landscape overnight.

grant.collinson@vrlfinancialnews.com

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