When productivity in the construction industry is high and heavy equipment supply chains are restrained, both rental demand and used equipment demand are strong. Equipment rental companies have long been a large and important group of clients for Ritchie Bros., both globally and in the Middle East region, with a growing industry trend towards buying, managing, and selling heavy equipment through online channels.
There are multiple indicators that we see, including higher bidder attendance at Ritchie Bros. auctions, more bids being placed and of course the price performance. Typical rental machines sold at Ritchie Bros. are seeing up to 30% price increases due to intensified bidding activity. Those who are looking to sell benefit from these favorable market conditions. However, we also see more buying activity from the rental business sector. Even rental businesses that generally might not consider buying used machinery are now looking through our equipment inventories for low hour, ready-for-work machines.
Digitalization of the industry has accelerated in the last two years
Our online auctions and marketplaces have seen massive growth over the last few years, with more online participation from the Middle East, Africa and India. We have a great team to support rental businesses in working out the optimal disposition strategy. However, the starting point of the company’s conversations with customers is broader than auctions alone. First, we listen and try to understand the business on a deeper level. From there, we can offer insights, services, and transaction solutions.
Fleet owners often like selling in our auctions because they don’t have to organize the sale of equipment themselves—setting the right price, creating the listings, running advertising, handling buyer inquiries, negotiating a price, and handling the paperwork. It can be a daunting and time-consuming activity to sell privately. With auctions, you remove that and can focus on your core activity. An unreserved auction gives full certainty that the equipment will be sold on a particular day. However, auctions are just one of the many selling options out there, and they’re not always the best solution for each situation. With Ritchie Bros., we offer not only auctions but also an online marketplace with a reserve option, Marketplace-E, and a listing platform. This way, the selling strategy can be configurated so that the seller gains most from it, with all factors combined.
More services available for rental companies to improve asset procurement, inventory management and asset disposition
Ritchie Bros was founded over 60 years ago as an auction company, but today we offer much more. Over the recent years, we’re developed other services and solutions that helps manage equipment. For example with Ritchie Bros. Asset Solutions, fleet owners have access to a suite of powerful solutions, including an inventory management system with real-time integration of the user data, accurate asset pricing tools and easy disposition workflows. We’re also super excited to have Rouse Services and SmartEquip part of the Ritchie Bros. family. Rouse Services is a leading construction equipment intelligence company that collects $70 billion worth of rental fleet globally and offers rental companies accurate and actionable insights on their fleets. SmartEquip changed the game for spare part procurement and optimizing up-time. Their innovative technology connects equipment owners with manufacturers and makes spare part procurement faster and more efficient.
Ritchie Bros. is committed to continually introducing new and innovative services to help customers manage their current and future asset management needs, and our new financing partnership with Emirates NBD is a big part of that mission being realized.
UAE-based buyers who meet prevailing bank lending criteria can now benefit from an expanded range of heavy equipment and machinery eligible for financing by Emirates NBD bank at Ritchie Bros. online Timed Auctions. Look for the finance ribbon marked on selected items on the Ritchie Bros. auction inventory list. The Emirates NBD financing facility has already delivered significant benefits for many Ritchie Bros. clients based in the emirates.