1. 37APRIL 2015 ACT
AUCTIONS INDUSTRY FOCUS
oil and gas segment is going down and
housing is going up, they’ll switch over. It
provides for good auction activity.”
You can imagine which cranes do
well at auction then. The all terrains do
exceptionally well, as do crawlers and
boom trucks.
“Crane availability is generally adequate
to demand in every segment except all
terrain,” said Tobón. “Higher quality all
terrain cranes are difficult to find and
lower end products are coming into the
market in greater volumes.”
This is somewhat of a new trend. The
oil and gas industry is flush with cranes
that have been in the industry for fewer
than 10 years, but due to working double
or even triple shifts during the boom they
look like they’re 20 years old.
Rough terrain cranes (RTs) are a tough
sell right now, too, according to Tobón.
“You can go into just about any U.S.
dealer and they’ll have plenty of inventory
of new RTs from 2013 sitting in their
yards,” he said. “I knock on those doors a
lot to get them to auction but they don’t
want to part with them.”
It’s all a balancing act, as are most
things in finance, and things appear to be
stabilizing, but apprehension still persists.
“We’re on track to pre-June 2008 levels,”
said Tobón. “The supply and the demand
curves are there. The value is there as well,
but there’s just a lot of uncertainty about
2015. People don’t take financing into
account as much as they should, like in
2008. Financing facilities are not in place
because lending institutions are being ultra
conservative. That has a tendency to affect
the market in the auction and retail sales.”
End users are responsible for about 70
percent of IronPlanet’s crane sales. Their
software-driven model gives IronPlanet
the ability to manage a spectrum of data
for sellers they otherwise might not
have. It’s one of the main reasons CAT
Auction Services decided to merge with
IronPlanet. CAT was losing information
to auctioneers who weren’t interested in
a true partnership. With IronPlanet, they
became a more informed seller, which
is attractive to buyers. Just take a look at
their first joint auction and the $48 million
W
hen IronPlanet merged
with CAT Auction Services
at the end of 2014, they
had big, big plans for the future of heavy
equipment auctions. Traditionally an
online marketplace, IronPlanet is now
aiming to host about 10 live, on-site
auctions a year with the help of CAT
Auction Services. The first one was held
at the end of February, netting over $48
million in sales. Only about $1 million of
that was cranes, but there’s more on the
horizon.
IronPlanet is targeting the segment of the
industry that loves the social aspect of a
live auction. Interacting with competitors
and friends in a competitive environment
brings out a level of excitement that online
auctions can’t always produce. That’s not
to say online auctions aren’t a thrill in their
own right. We’ve all been there, furiously
bidding on something on EBay, watching
the timer run down, praying we win, but if
you’ve ever seen a crane, and I’m sure you
have, there’s just nothing like standing in
its massive shadow.
The crane market at IronPlanet’s auctions
is very dynamic, and that’s due to the
versatile nature of cranes as equipment,
according to David Tobón, director of
crane operations for IronPlanet.
“Fortunately cranes have a tendency to
be able to switch from one segment of
utilization to another,” said Tobón. “If the
The used crane market
got a jolt after some
big auctions and a new
partnership. John Skelly
reports.
Going once,
going twice...
A Manitowoc 21000 lattice-boom crawler
being sold on IronPlanet’s Daily Marketplace.
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2. 38 ACT APRIL 2015
INDUSTRY FOCUS AUCTIONS
worth of equipment they sold. Tobón isn’t
exactly satisfied, though.
“To be honest with you, it’s small
compared to some of the 50-year old
companies who have been doing auctions
for a long time,” he said.
Versatility sells
On that same day and about 800 miles
away in Casper, WY, Ritchie Brothers
Auctioneers hosted a very large auction for
Energy Transportation that featured 750
pieces of equipment, including 34 cranes.
Fourteen rough terrain cranes (ranging
from 20 – 150 tons), seven all terrain
cranes (225 – 600 tons), seven hydraulic
truck cranes (75 – 110 tons), six crawler
cranes (230 – 660 tons), and related
rigging equipment, as well as heavy-spec
trucks, trailers and other equipment were
auctioned off.
While Ritchie Bros. has seen a good mix
of various types of well-maintained cranes
at their auctions, they aren’t noticing large
quantities so far this year.
“There’s a lot of activity in the lifting
and handling sector right now tied to the
increased amount of infrastructure work
in the United States,” said Doug Olive, VP
of pricing and valuations, Ritchie Bros. “As
a result of the amount of work going on,
demand is high and pricing on used cranes
has been strong, especially for late model,
well-maintained cranes. We’ve sold 180
cranes, including 84 rough terrain cranes,
24 carry deck cranes and 21 crawler
cranes.”
Ritchie Bros. sold more than 1,400 cranes
in 2014, including 578 rough terrain
cranes, 168 hydraulic truck cranes, 163
all-terrain cranes, and 144 crawler cranes.
Traditionally, they sell more rough terrain
cranes than any other type because of their
versatility and cross-sector appeal.
According to Olive, there are a number
of major factors that affect the price of
used cranes, most notably the lead time
and cost it takes to purchase new.
“With jobs available now, crane operators
need cranes to put to work right away—
it can take up to two years to special
order certain types of cranes, and many
operators can’t afford or don’t want to
wait,” he said. “Ritchie Bros. provides
crane operators with access to quality used
cranes when they need them.”
The most expensive cranes Ritchie Bros.
sold in the past six months were two 2011
Grove GMK5165-2 (165-ton) all terrains.
They went for $925,000 each in Williston,
ND back in November.
“The biggest factor affecting prices for
used cranes right now is the amount of
work available, particularly with increased
infrastructure work in the United States,”
said Olive. “Greater demand and tighter
supply mean strong prices for sellers.”
Similar to IronPlanet, end-users make up
the largest percentage of sellers and buyers
at Ritchie Bros. auctions.
As opposed to going to auction, end-
users wind up selling their own used
cranes quite frequently, as is the case with
ALL Erection & Crane Rental. ALL sells
direct because of the after-sales service
they provide their customers.
“The used crane market is strong right
now,” said Michael Liptak, president, ALL
Family of Companies. “Our high sales
volume of used machines is what enabled
us to invest heavily in newer models for
our fleet.”
ALL recently purchased 40 new Link-
Belt and 17 new Tadano cranes.
“Our success in selling really stems from
how well we take care of the equipment in
our fleet,” said Liptak.
Oil and gas fallout
Myron Bowling Auctioneers, Inc. has
been on a tear turning over crawler
cranes as of late. They hosted a five-day
auction in Morgan City, LA last Fall
for McDermott, Inc., an international
engineering, procurement, construction
and installation company that showed
demand for cranes from end users as well
as dealers.
“We sold several American 11250
crawler cranes at the auction for as
much as $525,000 plus 15 percent
buyer’s premium,” said Greg Hengehold,
managing partner, Myron Bowling. “At
another auction in New Iberia, LA we sold
a half dozen Manitowoc crawler cranes,
including a 2250 for $475,000 plus 15
percent. In the Gulf Coast market, lattice
boom crawler cranes are in demand
among shipyards and fabricators.”
Myron Bowling forecasts a bit of a dip in
the used crane market due to low oil prices
in the months ahead.
“In addition to the massive layoffs by the
larger players in the oil market, we have
already seen some smaller operators in
the transportation, fabrication, and site
preparation fields close their doors,” said
Hengehold. “Because of the tightening
of the market, more cranes will hit the
market, increasing the supply as demand
decreases. On the bright side, cranes used
in the construction trade are scarce and in
demand.”
If you’re not in oil and gas, things look
a lot better. Myron Bowling reports
that their auctions have generally been
strong and they see that most industries
are increasing capacity with an appetite
for good, late-model used equipment,
including cranes.
Myron Bowling typically sells cranes
from owner operations that have closed.
These are generally fabricators, ship
builders, construction companies or
erection contractors. ■
Grove hydraulic truck cranes were
auctioned off at Ritchie Bros.’ February
auction in Orlando.
An American Skyhorse 11250 crawler crane
went for $525,000 at the McDermott auction.
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