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| Nov. 2007 | Dec. 2007 | Jan. 2008 | Feb. 2008 | Mar. 2008 | Apr. 2008 | |
| Unemployment – Construction Industry | 6.2% | 9.4% | 11.0% | 11.4% | 12.0% | 11.1% |
Total Construction Spending continues its overall downward trend, down 3.4% in March 2008 over one year before. In March 2008, residential construction was down 19.7% while non-residential construction was up 11.8% from one year earlier.
In March 2008, building permits for privately-owned housing units were 40.9% below levels one year earlier. Privately-owned housing starts were down 36.5% from March 2007.
Projected New Equipment Demand
After a strong sales year in 2006, total construction sales declined by 1.9% in 2007. The Association of Equipment Manufacturers (AEM) began the year projecting that sales in 2008 will increase a total of 2.8%. Caterpillar's North American machinery sales were down 11% last year, but its business with Latin America increased by 24% and with the Asia-Pacific region 31% leading the company to predict substantial growth again in 2008.Secondary Market
Overview
Earth moving equipment includes machinery like crawler and wheel excavators; rear dump and articulated haulers; motor graders; backhoe, crawler, wheeled; compact and skid-steer loaders; crawler tractors; trenchers and ditchers; wheeled log skidders; horizontal directional drills; and scrapers. The value of used earth moving equipment in U.S. has fluctuated to such a degree that it is very difficult to draw any conclusions regarding specific trends in the direction of used equipment values. While it is not uncommon to see swings in value of between 10% and 15%, results vary due to a number of variables including geography of the sale, quantity of equipment sold, the quantity of like kind equipment sold, the number of purgeantaresrs buying for export, the destination of the equipment, the value of the dollar at the time of sale, and the specific condition of the equipment itself. Presently, the market is softest for the type of equipment used to support smaller projects like small dozers, excavators and scrapers. Conversely, the lifting equipment segment including most types of cranes is presently in strong demand on a global basis.Used Equipment Values – Fair
- Supply of used equipment – Increasing
- Demand for used equipment – Stable
Liquidation Monitor
- Recent bankruptcy filings
- Empire Land, LLC filed on April 25, 2008
- Kimball Hill, Inc. filed on April 23, 2008
- R&B Construction, Inc. filed on February 4, 2008
- TOUSA, Inc. filed on January 29, 2008
- Levitt and Sons, LLC filed on November 9, 2007
- Dunmore Homes, Inc. filed on November 8, 2007
Secondary Market Value Indicators
Methodology of Statistical Analysis
In every industry segment measured by AccuVal, data regarding transactions of similar assets is collected on a global basis, organized by their key attributes, and analyzed to identify trends in the marketplace. These transactions are generated by tracking thousands of sales annually which generate hundreds of thousands of transactions. This information becomes part of the world's largest database of transaction information and is analyzed using a proprietary asset management platform called "Asset Intelligence."
To create the trend line, transactions are grouped by asset type. The sales are further consolidated within asset types based on the frequency of occurrence within a range of sales prices. This refined group of more homogenous sales determines the basket of transactions used to define market trends for a specific asset type. These sales are the most common assets in that category and are within the highest frequency of sales prices occurring in the asset class being studied.
These items are further studied and categorized based on their specific attributes. These attributes may include things such as age and other key factors impacting the specification of an asset such as the weight capacity of a lift truck or the tonnage of a stamping press.
These sales are then run through a regression model to normalize the sales price based on age and the other attributes considered in the data set. Regression analysis in its simplest form finds the best fit for the relationship of all of the variables considered. The standard errors of the regression coefficients are used to then normalize the sales prices and account for differences in the variables or specifications of each asset. The normalized sales prices occurring within each quarter are then converted to a quarterly index based on calendar quarters.
Once the normalized sales price is obtained for each calendar quarter, this information is plotted on a graph over time. A three-period moving average is computed from these data points to reduce the impact of variances in the basket of goods sold in each quarter.
Lastly, the data over the last four periods is further analyzed and used to plot the most current trend line. This analysis produces the estimates of the anticipated percentage of change in value for the asset category in the next two periods.
Industry Experience
Valuation Monitor
AccuVal routinely provides appraisal, consulting, and asset management services to the Construction industry including earthmoving equipment, lifting equipment, bituminous equipment and concrete & aggregate equipment. View all Industries Serviced >>Representative Clients Our Associates Have Served
Caterpillar, Inc.
American Bridge
T.J. Lambrecht Construction Company 
Bucyrus International, Inc.
Kubota Tractor Corporation
Success Stories
- Valued a $130M Fleet of Caterpillar Equipment for One of the Country's Largest Contractors
- Conducted Appraisals Supporting Secured Loans in Every Segment of the Construction Industry
- Valueations of Hundreds of Millions of Dollars of Construction Equipment
- Provided Litigation Support in Criminal Proceedings Resulting in the Reduction of More than $10 Million of Damages
- Provided Crisis Consulting to Assist in Identifying and Reclaiming Equipment Missing in a Fraud Investigation
- View all Success Stories