Construction Sales Surged as Used Values Fell
As manufacturers log record growth, operators should track the expanding supply of aging used equipment in the secondary market.
Updated on Sept. 23, 2026 in Construction
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Major construction equipment manufacturers reported record or increased sales for 2026, driven by high demand from data centers and infrastructure projects. Simultaneously, the market saw an 18.22% decline in used equipment auction values in August 2026 compared to August 2024.
Why it matters
The divergence between surging new sales and plummeting secondary market prices stems from high demand for modern, high-spec machinery alongside a rising inventory of older assets. Operators must balance the cost of new equipment against the depreciating value of existing fleet holdings.
Caterpillar recorded $20.5 billion in Q2 2026 sales, a 24% year-over-year increase, while John Deere reported $3.6 billion in construction and forestry sales, up 18%. Used auction values fell 18.22% in August 2026 as the average age of market inventory rose by 6.97%.
The players
Caterpillar
A global leader in construction and mining equipment manufacturing with a dominant market position.
John Deere
A major manufacturer of agricultural, construction, and forestry machinery with a focus on equipment innovation.
Volvo Construction Equipment
A significant manufacturer of construction machinery that adjusts assembly operations to manage trade costs.
The details
New equipment demand remains insulated by hyperscale data center construction and large-scale energy projects. To manage these pressures, manufacturers like Caterpillar have launched dealer-network joint ventures for project support, while Volvo Construction Equipment has expanded domestic assembly to buffer against import surcharges. Meanwhile, the secondary market is being flooded with older machines, driving down values and creating a two-tier equipment environment for operators.
Timeline
August 2024 served as the comparison baseline for auction values.
Caterpillar recorded record sales volume during Q2 2026.
Caterpillar held an earnings call with analysts on August 4, 2026.
John Deere held its earnings call on August 20, 2026.
Used construction equipment auction values dropped 18.22% in August 2026.
Market Landscape
This performance follows the broader trend of heavy capital investment into hyperscale data center infrastructure, which is driving record demand for new machines. This activity marks a significant departure from typical cycles by simultaneously pushing new sales volumes while depressing used equipment valuations.
Operators looking to refresh fleets should monitor whether the decline in used auction values persists, as it may signal cheaper procurement options for non-essential equipment. Conversely, those holding older assets for resale should prepare for further downward pressure on trade-in valuations.
The takeaway
The equipment market is currently split between robust demand for new, specialized machinery and a glut of aging used hardware. Operators should re-evaluate their fleet replacement cycle, as current auction price drops may make used equipment a more viable alternative to new, high-cost purchases.
Further reading
For more information on market fluctuations and operational strategy, visit the Construction section.
Source note: This article includes information reported by Engineering News-Record (ENR) magazine.
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