Many people consider Spring the big buying season within the HDD Industry. Here at HDD Broker HQ, we almost always see a big spike in March, April and May. Usually our winter season is steady, a time for folks to browse for drills for their upcoming jobs, and do maintenance on their equipment. This year, however, we saw not only an increase in sales over the winter, but an increase in contractors working through icy, frigid conditions. There was just simply more work this winter compared to the last couple of years.
A couple of factors are contributing to the strong winter market:
- Global economic strength, and a lower US dollar is driving up equipment exports, especially to India, Africa and Australia.
The global marketplace continues to absorb used D24x40As, though they are getting harder to find. Lower supply has propelled the price up by about 25%, with an average of $33,000 USD, compared to $26,500 last year.
The D20x22 Series II and the D24x40 Series II remain stable performers, and with ample inventory available, I believe they will continue to be top sellers in the used marketplace for a long time.
Another best seller this winter has been the JT2020M1. The older models are selling as low as $25,000, which is a great price for a solid 20,000lb drill. We’ve even sold a 2012 for around $50,000, a terrific deal, so the attractive pricing is a likely factor in the recent JT2020M1 sales.
D36x50 Series II have sold well, which is a reflection of the HDD work that contractors are doing right now. It’s a great drill for a range of applications – gas, electric and mainline/backbone fiber installations. An optional enclosed cab gives this 36,000 lbs drill even more versatility, especially in the winter.
And a welcome addition to our best sellers is the D100x120 Series II. Some major pipeline projects have installations as small as 20”, making the D100x120 Series II an affordable option for oil and gas contractors. Pricing is entirely dependent and year and condition, but we sold some older models for a low as mid $150s, while the low-hour or newer machines went anywhere between $250,00 - $350,000. Demand for these, and maxi rigs in general, will continue to increase.
Newer models were popular this winter, we sold an array of D20x22S3, D24x40S3s and JT20s. We’re seeing more of these in the used marketplace, and they tend to sell fast, usually under 30 days if they are reasonably priced.
Not specifically in our top 10, but an interesting trend we’re seeing is the sale of large track trenchers, mainly as the result of all the pipeline activity. We’ve even shipped a few overseas, it’s interesting logistics, but we love moving big (big!) iron.
As a brisk winter comes to a close, we look forward to a busy spring. To those of you hardy contractors that are still working out in the cold, stay warm, and remember, “There’s No Crying in Drilling”.
Questions? Comments? Feel free to send me message.