Liquidity is always a key consideration for construction companies since surplus heavy equipment and machinery inventory can unnecessarily weigh down a company’s balance sheet. Increasing liquidity, removing surplus assets from the books, and improving the bottom line are often key objectives for many business managers
An increasing number of construction companies are seeking more efficient ways to improve the procurement, management and disposition of heavy equipment and trucks. The main reasons in the current market continue to be the high shipping rates and long delivery times for machinery.
However, as is common with asset lifecycle decisions, timing is critical. The challenge is to release surplus assets onto the market at the right time, considering seasonality factors and fluctuating demand for specific assets. Choosing the right time to sell can have a big impact on the selling price.
Responding to this need, Ritchie Bros. Middle East, Dubai is adding another online Timed Auction event in the year starting this November. This decision follows strong results at the company’s June auction, when over 1,800 items were sold to online buyers worldwide, recording the highest number of buyers and sellers in the past five years for May/June auctions.
Following the transition to entirely online auctions and marketplaces, Ritchie Bros.’ advanced digital equipment disposition infrastructure enables the company to increase the number of online auctions held annually. The decision to grow from four to five online auctions annually is evidence of this digital transformation strategy working in practice.
Here are four key observations we can make on how Ritchie Bros.’ services are helping construction businesses with their needs for heavy equipment and other commercial vehicles:
Using data insights to set pricing
Equipment value is difficult to establish without access to proper expertise and in-depth knowledge of the industry. Every year, hundreds of thousands of transactions go through Ritchie Bros. around the world, providing valuable information on where and when to sell machinery for the best market value. Ritchie Bros. uses historical and predictive data sets, develops analytical tools, and provides intelligence that allows its customers to make better decisions.
More auctions mean more opportunities to sell
Companies that have a surplus of assets need frequent access to the market and different asset disposition models. However, as is common with asset life cycle decisions, timing is critical. Choosing where, how, and when to sell, will have an impact on the selling price. With Ritchie Bros.’ addition of a fifth unreserved online auction in Dubai in November, consigners do not need to wait long and can achieve faster results. In addition, consignors can also opt for the online Marketplace-E, where consignors receive full assistance in finding the right buyer and at the right price.
Aftermarket supply and demand curve flattening out for buyers
Demand for used equipment amid global supply chain disruptions remains relatively strong. An additional auction event ‘evens out’ the flow of equipment categories onto the market, meaning buyers can access vital equipment more quickly, alleviating short-term shortages and keeping their businesses trading at full capacity.
Low-hour used equipment in greater demand
Increased buying activity is being observed in the construction sector due to supply chain delays in new equipment. Even construction companies that generally might not consider buying used machines are now looking through Ritchie Bros.’ equipment inventories for low-hour, ready-for-work machines.
New auction in November. Start getting ready now.
For 2022 the Dubai auction calendar has online auctions in March, June, September, November (newly added) and December. Sellers have already started consigning items for the new Ritchie Bros. online Timed Auction in Dubai, which will be held on November 1 and 2, 2022, with bidding open from mid-October. Besides auctions, there are several other disposition formats available for equipment sellers, depending entirely on their needs and preferences. To find out more about selling with Ritchie Bros. or to view current inventory highlights, go to: rbauction.com/Dubai