2022 Was An Extraordinary Year

By Renée Lauzon-Martin - General Manager, HDD Broker LLC - December 22, 2022

2022 was an extraordinary year - one that we've never seen in the used marketplace!

Several factors contributed to this unusual year:

  1. Pent-up demand for faster streaming and better bandwidth speeds intensified telecom work and infrastructure installations.
  2. OEM's tried to respond to rapidly increasing need for small and mid-size drills but are dealing with acute supply chain issues, especially for hydraulic and electronic components.
  3. Hard to find new assets + huge telecom demand = people turned to used market which over inflated the prices quickly.

Let's break down how these factors specifically impacted the used marketplace in 2022:

  1. We saw a dramatic reduction of used inventory, especially for drills under 30,000lbs. In July 2020 we had 264 drills under 30,000lbs, and this summer we only 70, mostly older models with high hours.
  2. The most sought after drill this year, the Vermeer D20x22S3 had an average sale price last year of $84,000 (drill and pipe only), and this year the average price was $150,000. That's a substantial increase!
  3. Ditch Witch JT20's increase by an average of 40% and Vermeer D23x30's increase by 45% compared to prior years. We saw average prices go up as much as 45-70% on high demand units in the 10-20,000lbs sizes.
  4. However, Drills in 40,000lbs - 100,000lbs range didn't see skyrocketing pricing, sales were stable and pricing was fairly comparable to last year.
  5. Drills over 100,000lbs were very soft this year, virtually no demand at all.

My prediction for next year? There is no end in sight for telecom work which will continue to put pressure on OEM's and the used market for drills in the 10-20,000lb range. Manufacturers are still behind for at least the next 9-12 months. While we won't quite see the pricing and buying frenzy we did this spring due to some buyers pushing back on the high pricing, I do predict ongoing inventory shortage and inflated costs. Nonetheless, the used market will continue to be a major source of equipment for contractors.

I hope your 2022 was as exciting as ours! I'd love to hear about it, drop me a message renee@hddbroker.com. Wishing everyone a safe, prosperous and healthy 2023!

This commentary is presented for informational purposes only. It is not intended to be a comprehensive or detailed statement on any subject and no representations or warranties, express or implied, are made as to its accuracy, timeliness or completeness. Nothing in this commentary is intended to provide financial, legal, accounting or tax advice nor should it be relied upon. Neither HDD Broker LLC nor the author is liable whatsoever for any loss or damage caused by, or resulting from, any use of or any inaccuracies, errors or omissions in the information provided.

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