Tallon data: June 2010

Leasing
Life, in collaboration with Tallon &
Associates, publishes a monthly analysis of data on the demand for
used assets. This month we look at changes in demand for the
construction sector.

Tracked dozers

• Generally little demand due to the
  decline within the construction sector and initial site
  preparation. However, slight signs of recovery in the last
  quarter.

Tracked excavators (1–10
tonnes)

• Demand reduced dramatically in the
  last six months of 2009 as a result of the decline in the UK
  housing sector.
• Associated company closures resulting
  in a large number of machines on the UK market.
• Sector showing some signs of recovery
  over the past few months.

Tracked excavators (10–21
tonnes)

• Again demand reduced significantly
  during 2009 due to decline in housing and construction
  sectors.
• Market showing signs of improvement
  during spring 2010.
• A shortage of new equipment may result
  in an increased demand for used machinery.

Tracked excavators (21.5+
tonnes)

• UK demand has been slow during the
  past 12 months.
• A demand for larger excavators has
  been seen from the European export market due to recent favourable
  exchange rates.

Articulated dump
trucks

• Demand has been slow throughout the 12
  month period with the continued reduction in the UK construction
  sector.
• The annual trend generally shows
  increased demand during March and April.
• Decline softened by a shortage of late
  machines.

Wheeled loading
shovels

• Generally no major changes in demand
  for the wheeled shovels during the first three quarters. However,
  the last quarter has seen some improvement.
• As with most construction plant,
  leading manufacturer’s machinery will sell quicker than second tier
  equipment.

Site dumpers

• After a period of 12–18 months where
  little demand was seen for such equipment, the past few months have
  seen a slight upturn.

Piling

• Sector suffered during late 2008 &
  2009 due to downturn within the large scale construction
  sector.
• A large quantity of machinery is
  available on the European market place.
• Limited enquiries have been noted
  however at significantly reduced values.

Directional
drilling

• A continually weak UK market, showing
  little if no improvement in recent months due to limited
  operational requirement.
• Large quantities of equipment are available
  on the second user market place in both Europe and the US.

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