used construction equipment

The market for used construction equipment is booming, both globally and in South Africa.

In this article, we examine the sector’s market growth to see where the demand for used construction equipment is coming from.

Overall growth in construction

Demand for construction equipment – whether new, used or reconditioned – has shown sharp growth since the start of 2022. This applies to South Africa and the rest of the world.

One recent report on the heavy machinery and construction equipment market states that “demand has changed in terms of region, with the fastest annual growth (about 9%) reported in South Africa.”

Demand for used construction equipment

Over the past few years, there’s been a major spike in demand, particularly for used equipment internationally, and across Africa.

In 2022, auctioneers of used and refurbished heavy equipment registered “as high as a 20% increase in sales to African nations.”

Statistics: global demand for used equipment

Statistics for the global demand for used construction equipment show a 10 to 12% surge over the past 18 months. Demand is expected to rise by a further 10% in 2022.

The European market is predicted to show growth of 3.6% in 2022 and a compound annual growth rate of 3.9% over the next three years.

Alongside this growth, the past six years have seen a 13% increase in prices fetched at auction for used construction equipment.

African used equipment markets

According to 6Wresearch, there is “rising demand for used construction machinery in real estate and construction activities.”

Earth-moving equipment – including motor graders – dominates the African equipment market.

Among the key players are Caterpillar, Komatsu, Hitachi and Liebherr.

What’s causing a spike in demand?

There are several reasons for the spike in demand for used construction equipment. The industry is seeing a recovery from the “COVID trough” alongside new equipment supply chain issues and increased industry demand for specific machines.

At the same time, companies are focusing on finding ways to enhance profit margins as cost pressures impact businesses of all sizes.

Other factors include:

  • resilient global construction sector
  • reluctance to invest in new equipment
  • scepticism of the “latest tech” associated with new models
  • shift to online transactions for used machinery
  • construction companies survivalist strategy.

Reconditioned Cat motor graders from KH Plant

KH Plant specialises in restoring Caterpillar 140G, 140H and 140K motor graders and components to as-new condition – so you can get the benefits of a new motor grader at a fraction of the cost of a new machine. We sell reconditioned used construction equipment to clients across southern and western Africa.

Each grader undergoes a meticulous rebuild process, according to OEM specifications. They’re sold with a full warranty and comprehensive after-sales support.

Contact us for more information or to discuss your needs.

Do you need expert assistance?

Call us now on +27 83 274 4882 or email us.

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