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What An Industrial Depression Looks Like: Photos From An Australian Heavy-Machinery Auction
Two weeks ago, when looking at the latest Caterpillar retail sales data...
... we said that "If Caterpillar's Data Is Right, This Is A Global Industrial Depression."
Today we get visual evidence of this, courtesy of an Australian heavy industrial equipment auction where machines such as a Caterpillar 992C wheel loader, which normally costs $2.9 million, can now be bought for just $15,000, a 99% discount!
As Australia's ABC reports, now that the commodity bubble has burst for good, auctioneers are hard at work selling tens of millions of dollars of suddenly useless coal mining machinery for just a fraction of its original market value.
The reason is known: the severe downturn in the Australian resources sector (courtesy of China's whose commodity imports are declining with every passing month) has led to a massive oversupply of equipment, and much of it is unsuitable for use in any other industry. This means unwanted excavators, trucks and sundry heavy machinery will end up as scrap, if not sold at auction.
ABC's reporter visited just one such auction in New South Wales, which was owned by Big Rim, a mining services contractor which also collapsed after the miners it serviced also closed.
What he saw was stunning:
"At the moment we've probably got the worst downturn I've seen in 25 years," said Chris Hassall, whose company is conducting the auction.
Peter Turner's Gold Coast company Turner Engineering used to compete for contracts with Big Rim. "I'd be interested in at least 50 per cent of what's here, and there are at least 100 machines here," he said.
One of those machines was a large water tanker which Peter Turner was running the ruler over. "It's not worth a lot. It's worth $75,000 or something, but you can't build the tank for that."
Worse, when the auction began the owners of a once-thriving business were hoping this fire sale would at the very least cover their debts. No such luck as the photos of the epic discounts on the equipment show.
"Some of the old equipment that was working in the last two years is now redundant, won't go back to work," said auctioneer Chris Hassall.
"We had 20 trucks in the Hunter Valley recently that 18 months ago were probably worth $600,000 each. We've just cut 'em up, returned about $40,000."
It's prices like these which help explain why shares of the Kerry Stokes-controlled Seven Group are less than half what they were two-and-a-half years ago. Seven holds the largest Caterpillar franchises in both Australia and China.
Coupled with the mining downturn, with good second hand machinery so cheap, it is little wonder new sales have been hit hard.
For the sellers it was a bloobath; however at least some of the buyers were happy. "Contractor Peter Turner had been hoping to pay $75,000 for a water tanker, and in the end paid a little more at $77,500."
As ABC concludes, "it was a day which displayed the stark reality of a coal mining industry which has gone from boom to bust in a very short space of time."
Unless China ravenous appetite for all possible commodities returns, the industrial depression, already the worst Australia has seen in 25 years, will only get worse.
And this is what an industrial depression looks like in numbers:
Was: $2.9m | Now: $15,000: Caterpillar 992C wheel loader
Was: $1.4m | Now: $50,000: Hitachi EX1200 hydraulic excavator
Was: $2.7m | Now: $46,000: Caterpillar D11N crawler tractor
Was: $900,000 | Now: $47,500: Caterpillar 775D rear dump truck
Was: $200,000 | Now: $2,000: Large workshop with water tank
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Dude, I want one of those for Christmas. Can you FedEx it?
parker schnabel wants that d11 dozer to get to the glory hole of tradition!
"Today we get visual evidence of this, courtesy of an Australian heavy industrial equipment auction where machines such as a Caterpillar 992C wheel loader, which normally costs $2.9 million, can now be bought for just $15,000, a 95% discount!"
That's a 99.5% discount actually.
A C series loader from 1988 probably sold for parts.
Happens all the time.
I think CAT is up to the K series in wheel loaders right now.
Get one for Christmas, Festivus or whatever ...
https://www.youtube.com/watch?v=n_hrJyoKmDk
Take those numbers with a grain of salt. Mining equipment runs 24/7 and is not like equipment that comes out of construction companies. It is bascially throw away junk not worth rebuilding in 5-7 years of use.
True auction sales of good construction equipment has seen a 30% collapse in values from early 2014.
It be all about " Legacy. "
Interesting how it is easy to see the potential value setting there in this equipment as it is easy to understand why it is setting there.
Why is it so difficult to see the same value in people with degrees setting and know why they are setting? Like the equipment, if there is no demand, no work, no matter the potential. People are just as much in the demand/supply mix as is the equipment.
i would have up arrowed you, but "setting"?
I could use that Cat 775D to show up the dudes across town who cruise around in their tricked out F350s.
They ought to figure out what it costs to ship this stuff to heartleand USA and advertise it to all the ranchers and farmers...at these prices it would all get sold. I would love one of those loaders in snow country.
That's what I was thinking. Roll up to Sonic in that bad boy and order myself a chocolate shake.
I am in Melbourne at the moment - it feels quite rich and happy - ots of people in restaurants and bars, and I have never seen so many of them even in Paris or London - pretty full of young people even on Monday night. People seem happy and optimistic and also very friendly. I've only seen 2 (well dressed and very polite) homeless in my 2 weeks here.
It's probably the nicest city I have ever seen. I was told yesterday mnimum wage is quite high too and their tax-free annual allowance is 18200 (twice as much as in the US) - so mre poeple have more money to spend in bars etc. It also feels much freer and happier than SF, LA or London
If this really is a depression it feels much wealthier and ahppier than any 'prosperity' I have ever seen living in the Uk and the US
I think you mean....more poor people living below the poverty line have money....raising min wage does not increase collective income.
The newly painted siding always covers the rot inside. I'd be scared it I see too many happy faces. Usually means folks are going to get blindsided.
Antifascistiche -I don't know I've only been here 2 weeks or so but it seems happy and wealthy, full bars and restaurants, relaxed, well dressed peopel that seem to get on well and enjoy talking to each other.
There is no poverty like the USSA poverty - even (or especially ) in San Francisco where I live. Actually I think I have never seen more or worst cases of poverty than I see daily in the USSA - the most hopeless, dirty, sick, left on your own to die kind of poverty that shoudl not exist anywhere
PS I love your username - always reminds me of WW2 movies I've seen as a kid in Yugoslavia
I keep trying to tell people to get to Australia. I suppose you just have to see it with your own eyes to understand why.
.
I also live in Melbourne. I have a different impression.
Last Tuesday - Melbourne Cup day and a public holiday - I walked along the South Bank and looked carefully at the restaurants. Most of them were over 50% empty. The weather was great and there was no shortage of people walking about.
you probably know better since you live here. I am just visiting for the first time- I spent that weekend in Brighton I thnk (it was raining I think until noon or so) - I was impressed with how many little bars there were in that area close to the roller coaster. Or where I live in South Yarra. The coffee they sell, (haven't seen any Starbucks anywhere in Melbourne yet), maybe because I live in SF - these bars look pretty full to me (like in Tokyo). Last night on Chapel St all those little bars and restaurants were pretty full at 8pm
I live in both Melbourne and Sydney - if you were in Brighton, Melbourne, you're seriously in the richest part of town. I live in Brighton 6 days a week but I don't own any Ferraris or Lambos or Porsche GT Cup cars unlike just about ALL my neighbours. There are a few tiny SBUX around, but there are more in Sydney; Melbourne people are coffee snobs and refuse to drink anything mass produced - has to do with the large Italian migrant heritage.
Australian wages are totally unsustainable and property prices in Sydney and Melbourne are beyond insanity.
The China mining mega-boom was a once in multi-generation event. The worst part is everyone including the government have has just pissed away the enormous proceeds of that boom. Most of the population is in a state of denial about where the economy is headed - the GDP forecasts look wildly optimistic and the debt and deficit are growing at an astounding pace with no real plan.
my Irish friends (recent grads) got jobs aroudn Perth (200k USD a year plus I think) - they have been there since about 3 years ago and they tell me their contracts are expiring - so the party is over. One of them is probably moving to Melbourne soon
Of course 50% empty........They were all at the races or race parties.....you pillock!
Sure, the tax free threshold is $18200, but from that up to $37K you're taxed at 19%. After you get past $37,000 per year, you're taxed at 32.5%, then 37% over $80K, and 45% over $180K. Payments to your superannuation (similar to 401K, but far more restrictive from what I understand), are taxed between 15% and 45%. Then there's your Medicare Levy obligation which is 2% of your total taxable income. So on a good day, you'll end up paying more than $15K a year just in various income taxes. Then almost everything you purchase will have another 10% tax on it.
Those two well dressed and polite homeless people? Hipsters. The homeless here are just as drunk and beligerent as they are anywhere, unfortunately.
Keep in mind the median wage is around $57K a year, but that won't be anywhere near enough to allow you to borrow the $300K most people need to get a dump of a house on the edge of any of the 6 major cities in Australia. Average rents across the nation are $486 a week (Source: http://www.abc.net.au/news/2015-08-10/rents-fall-in-every-capital-city-r...), and that doesn't include utilities (like it does in the US), which will get more expensive as wages rise, which then forces retailers to raise prices.
Things sure look rosy in Australia, but scratch the surface and you'll find that people are up to their eyeballs in debt, and have no way of getting out.
I believe you're forgetting the "temporary" (ahem!) debt levy which applies on top (another 2%), making a highest marginal tax rate of 49%. Maybe the feds hope that sticking below that magic 50% will make the larceny magically invisible. Then, for what's left, there's the current debate (guarantee) that sales tax is going to be increased by 50% and newly applied to fresh food, education and health care (because those things are obviously not expensive enough). And don't forget to pay your property taxes, water taxes, and road tolls (obviously not a tax). When the government takes the majority of the fruits of your labour, and it's still not enough, it's time to vote with your feet. Or with a gallows.
Yes I did forget that. So I went looking, and found this glorious comment:
"I'm all for rich people coughing up a bit more dough so we can get out of Labor’s debt, but Abbott broke a promise. Another one. How many more broken promises until we’re fed up?!".
Moar fair shares!
As I posted in another thread - NSW councils are "asking" IPART for a 47% increase over 7 years, which in pure numbers terms, is 6.7% per year, but those who understand exponentials know it's going to be much more than that in the end. Plus, if these amalgamations occur, who knows how many extra funds councils will claim they need to help offset the costs of the amalgamations they decided upon.
Thanks FTW and RD66 for very useful info and for clairfying tax rules etc.
Compared to where I live in San Francisco this is still a bargain (compared to the rent one of my friends is paying close to South Yarra - roughly the same are to where I live in SF (Russian Hill - although I think South Yarrra is better and livelier)- but his place is better and has a pool - my rent costs about 3.3 times more.
the way tax works in the AUS seems similar to the UK . I've always thought we pay more tax in teh USA and get nothing in return pretty much.
I've lived all over the place - but Melbourne seems maybe the best place I have ever seen - a mx of Notting Hill, Charleston and Venice Beach - with nicer people and better looking and friendlier women
Taxation in the US and Canada is, for the most part, less than in Australia. The consumption taxes in North America is where you get stung. Another example of absurdity is that payroll tax in Australia is 30% (last time I checked), which also contributes to the high prices in Australia.
Melbourne is quite nice. It also has the largest population of Greeks in the world, outside of Athens.
In canada there are hidden costs (almost like a tax) (i.e. car insurance is much more expensve than in the US - and I think it operates as a monopoly in each province. You end up paying 5 times or so as much compared to the US
Rackets hidden by duct tapped investigative journalists have made weak shallow men very rich.
Meet the real King of England, King Hastings and the beautiful royal family found down under (Let's plead with him to step up the plate.)
https://www.youtube.com/watch?v=z5fIwLo1Trs (Documentary, An illegitimate Hair)
I rode out of Melbourne on my bike on the freeway. The most terrifying 2 hours of my life. And yes. I have fought a war.
You can shove that place.
I am just a toruist but compared to SF or London and LA (constant traffic jam and pollution) - this is like traffic in a little Serbian town where I come from
Victoria isn't a resources state. WA and Queensland are, and the economies (especially WA) are crashing hard. Also, the average house price in Melbourne is $800,000, thanks to negative gearing for property speculators, concessional capital gains tax for property speculators, and the government's refusal to enforce rules preventing foreign buyers taking existing homes. Young Victorians will never be prosperous enough to own their own homes. Sounds more like poverty to me.
yes that 's what everyone tells me - and I believe it. Yet still more people I know here have more and better houses than the ones I know in London, Toronto, LA or Tokyo - so cmparatively it's still better. and you seem to have better architectural code - I don't see any new ugly buildings being built like in London,or Toronto. Archtecture is well preserved and new buildings fit in (a rare thing in today's world I thnk).
if you buy in the city , yes non affordable
but a 1/4acre block n 3brm house ,small rural towns 120k or less avg
it depends on your choice of area and acceptance of lower paid lesser jobs BUT a huge increase in quality of life overall.
city living sux...
that's always a good idea in every country and if I move here that's what I will do
as someone living on that taxfree base income
its NOT an income that allows any outings to bars etc.
rent in Melb? have you looked?
prices of a loaf of bread?
3/4$ avg
dozen eggs $4
cheese 13$ a kilo avg
potatos 2 to 3 a kilo
electricity 30c per kw hr some more some less.
the poorer still pay the gst and the same price for food n rent etc
but the avg lowest wage is near 20$ n hr.
the base dole is around 250 a week small flat is 2oo+ a week
not much left to eat let alone pay fares to go for a job is it?
what youve seen is the well off , you need to look around in the less "nice" areas.
Not buying the "was" prices.
Pun intended.
If ZIRP and NIRP are official policy, then I say:
SHUT.IT.DOWN
I would imagine that a 992C would have close to 50,000 hours on the frame.
Most of these trucks need 3 to 4 gallons of fuel per mile.
So if they're somewhere in the outback, you'll need about 20 to 50K to get them to the coast.
But if you want to do some landscaping, these are what you need!
However, you could make a lot of soylent green with that big ass front end loader if you drove through a few farmers markets.
The Mad Max sequel got a little less action-packed when the vehicles slowed to 4mph and started beeping incessantly.
I get flyers from all the area auction houses and there's an absolute auction coming for heavy equipment and according to the auctioneer, there isn't much interest. If I can figure out an excuse for bidding on giant pieces of heavy equipment I have no use for, I might make a few bids......
This summer I was at a auction of repo'd company cars and man... bmw 5, 6, I8.... everything! 10 to 15K miles
and those prices where just insane!
On the other side, there's people making some serious profit from those repo's.
These days, it's nearly insane to buy a new car, you can buy the nearly new at 1/4th of the price.
Gravediggers always have a job......
Skatedad has a superstition that reposessed things have bad juju associated with them. I tend to agree.
A car sold on Craiglist from a responsible and happy seller is a better deal, though you are likely to pay half the new price instead of a quarter.
Yeah, it's an inanimate object and serves the purpose of getting you from point A to point B, but.... beware the juju!
@_@
I have a feeling Skates is spreading false rumors to make sure there are fewer people at the repo auctions. See ya at the repo auction Skates, look for my roller blades and wave high buddy.
Give it a makeover. https://youtu.be/eYj5IaAsD0Q?t=51s Killdozer
Are those figures comparing sales prices of the depicted equipment or before and after figures for the Cramer and Gartman trading "accounts"?
Makes me wonder how long until we see prices like these in the USA. That D11 could get very useful.
I'm no Australian but I'll rent my Heavy Equipment. Is damn good for deep drilling:
http://www.thepornster.com/video/351/gamer-teen-girlfriend-gets-her-ass-...
What in the actual fuck? Fucktard.
Productive assets under a normal monetary system, where pricing is stable and saving is rewarded, never get pushed aside. The fact that machinery like this is sitting means what? Population decreasing? Needs decreasing? Oversupply of resources? Or..... COMPLETE DEBAUCHERY OF THE MONETARY SYSTEM that measures a unit of work?
Latter my friends. Put your economy in the hands of a banker or accountant and this is what happens every time.
Come to the US to see what the Industrial Dark Ages looks like.
The auctions occurred some time ago.
Most likely means the equipment is junk and badly in need of overhaul.
Q: The fact that machinery like this is sitting means what? Population decreasing? Needs decreasing? Oversupply of resources?
A: It means people have no money to satisfy their needs
I've read that the Gold Rush show participants get most of the equipment for free for product placement shots, i.e. Volvo
I always wondered about that. I've seen that show, and it's kinda cool watching them dig my favorite element out of the earth. But cat and Volvo get A LOT of free advertising out of it, unless it is as you say. Many shows blur brand names unless they get a little money out of it, and I've never seen that happen on there. Same with how any of them are driving expensive trucks and SUVs out there. What better way to advertise the durability and toughness of your truck than to get those guys to drive one. I sure as hell wouldn't be driving a 50k truck around out there, id be driving the cheapest beater 4WD I could find.
I would buy one of them to dig gold nuggets in the desert!
As long as The Hoffmann's don't get their hands on it, it's all good.
Tony Beets say fuck!
I call dibs on the workshop. Cheapest housing for an awesome indoor skatepark and metalworks shop ever.
No doubt that....Your town will find some reason not to be able to give you a permit for it.
I have one about 3x that size. The county would only approve it 1.5x as big but the guy that gave the permits was being voted out for being a strict asshole, so he gave me the permit and said do whatever you fucking want, just be finished before the next guy is in. It went up fast lol.
The way it should be on your land. "Do what ever the fuck you want"...
localsavage and rsnoble: great inputs. It's long been a goal of mine to have a structure like that for an indoor skatepark and shop. Hopefully that still holds that you can build whatever sized shed out in the boonies. Sure can't afford renting such a place in the SF Bay Area.
Pretty much my philosophy. But then again, I'm out in the middle of bugfuck nowhere...
Standard Disclaimer: http://epg.modot.mo.gov/files/8/8b/M12-2.gif
Valued at $300K for property tax purposes.
It's all going nicely to plan......
http://beforeitsnews.com/conspiracy-theories/2015/11/666-is-upon-us-the-...
This is what deflation looks like.
Fucking DEAD
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.wallstreet34.com
Are these street legal? I'll take one.
A set of 4 new tires for the 992 will run you about $55,000.
In my business...we are seeing people financing their ass off. Just a heads up. THis is the Car Audio business. You can see the writing on the wall my friends.
Hey, the FSA needs their Rap Blasters. It is their Constitutional right. Besides, after all College debt is forgiven then come all consumer debt.
@take action, you own a car audio shop and you have people coming in there to get financing to buy a fucking car stereo? Jeezuz. That's fuckin sorry right there. No doubt they are in a 6or 7 year loan on their car too.
It's not a car stereo it's a stereo system with a 500 w amp and 28 inch subs u can hear it from 300 feet away.
Hello? This has been going on forever. 72, 84..........infinity!!!!!!!!!!!!!
just ride down I-20 from Odessa to Midland TX...it's a "windshield tour" of the deflation in the oilpatch
Same from Brighton to Greeley CO.
Ritchie Bros yard full for next auction.
Fuckin finance it!
https://www.youtube.com/watch?v=wzfvkqb1ddw
You should get into wheels and tires too.
The market for $2,500 cars with $2,000 tire and wheel set ups and a $2,000 audio system is unstoppable! It's geometric I tell you!!!!
As a car guy I am starting to see this more. Beaters from the 90's with a bunch of garbage on them, especially the cheesey exhausts. You can get lightweight 17's for about $800, yet people put these heavy wheels on. Still think its fun to modify a car, but at least get things that make the car perform better. Seeing a lot of new cars on our block right after we got a new car. I know what I make and I promise the people next door getting subsidies cannot afford that new Merc. We happen to get other people's mail by accident. My credit bumped up for taking on a lease. What in the world...
What type of systems are people financing? Good systems are so cheap to put together this is hard to imagine.
In my business, engineering for construction in LA, I thought it would slow down to the end of the year, but its picking right back up. I get a sense a lot of SFR is being done with cash. Apartments are financed though. Some of the low income housing requires 100% bonding. Now that's crazy that that stuff is still being built. Deep pockets for that, I am talking about $10-50 mil projects still moving along like its 2005.
I see future snow removal equipment at basement pricing. HOORRAYYY for the GREAT RECOVERY!!!!!!!!
I'm surprised their not renting out the cabs for living space in the expesive land of down under.
Clearly this calls for a gubermint program. We can call it cash for Caterpillars.
The sad part is there already are government programs wasting piles of tax payers cash.
My nephew went through a course at the local community college (free of course) for about a year to train to be a welder for the local Caterpillar plant, was hired and worked there for about a year before being layed off and the plant really downsized. He is young but still pretty good responsible worker. Was shocked to learn that his pay was not quite nine bucks an hour welding heavy construction skid loaders. Realize this is a little more than a McDonalds worker.
What the hell? No wonder no one wants to work anymore.
I've got an old Army buddy that is a welder in Alaska. He makes serious coin and calls his own shots. Your nephew should seriously look at a move to Alaska of he likes welding, as well as hunting and fishing.
In Philadelphia its worth fifty bucks.
Philadelphia Isn't worth $50
I'd rather be here than in Philadelphia.
How much for the gun?
Oh, I miss me some Aaron Russo
Just give me the money.
There is a Ritchie Bros auction house about 25 miles up the road from me. They have 4 or 5 equipment auctions per year, all packed to the gills with equipment that was most likely bought by gubmint cheese, and selling for 40 to 60 cents on the dollar.
The pictures definitely make it real. Wow!
just the beginning.. wonder if there is cheap repo gold auctions.. I would be up for that
indeed. let me pick through their slag heap.
Sounds like a mining company is having a fire sale to raise enough to pay the workers. Symptomatic; but systemic? Maybe, mate.
That D11 would be handy to clean out the scum in Washington....
Maybe the perfect platform for a KillDozer.
At $2.7M it's going to do a good job of cleaning out the fools in Cat, as well.
Nope, no capital goods bubble here.
Recall that guy in the Midwest some years back who got pissed over being screwed for taxes or zoning or such and armored one of those things up and it was unstoppable. He slathered it in trench plate and several feet of concrete in all the right places. Took hundreds of pistol and rifle rounds, gasoline bombs, I think maybe even a LAW rocket before a ricochet poked a coolant line and it overheated, but not before he'd leveled a good chunk of the town...
Marvin Heenmeyer. Zoning issue. Looks like might be smaller than an 11.
On YouTube.
Damn.....if only that track hoe were closer....
I don't feel like doing the math. But 2.9 million down to $15,000 seems like more 99.98% discount.
$15,000 in 1912 dollars
I bid 1.00 for each item.
Those were all sold, according to the website- somebody's buying this stuff?
The surviving mining projects, presumably. There may be some cheerful headlines about miraculous efficiency improvements in Australian mining, if US shale is anything to go by.
As spare parts it's a steal.
Tires, as mentioned above.
You'd be a fool not to snatch this stuff up. It may take a while but I cant think of a better bet. Gold has less up-side in even the FOA scenario. This equipment is fantastic and the price is insignificant! Even if it has problems. Remember back in the commodity bubble when tires for those things were going for 150K? I'm just dumbfounded by this. My mind is blown. For the cost of a shitty shack in Sydney you could buy a giant FLEET of heavy heavy equipment!
The bucket and wheels alone on the 992 are worth 3x the purchase price.
187,000 pound operating weight means about $8,000 in scrap steel.
you're saying 4+ cents per lb for scrap steel? dont think so. who is paying that kind of price for scrap steel these days? maybe 2 or 3 years ago. now you're not going to get more than .02 per lb, if that.
#1 cast is only going for $40/ton?
There's an interesting comment in a post on Art Berman's blog suggesting that this year's rig productivity miracle in US shale may be partly down to a similar effect: an oversupply of machinery and materials thanks to cancelled projects, available to be snapped up on the cheap by the surviving ones.
Myanmar could use these.....
Can you say DEFLATION!
Cause this is what it looks like.
By the way these salers like have insurance for the value of this equipemnt. So some german bank somewhere is now paying the difference between this equipemnts purchase price and the sell price they recieved at this auction.
Killdozer??
wasn't so long ago the aussie were laughing at the Irish selling off construction equipment cheap after the bust.....how the world turns...
Obviously this company is not considering selling to the US Federal Govt. They could probably get 1 Billion dollars for each auction item.
That's in Australia...how about here in Merica..big sales popping up all over.
No. of Farm Machinery Auctions Rising Rapidlyhttp://www.agweb.com/blog/machinery-pete/no-of-farm-machinery-auctions-r...
Dem farmers need to stay employeed to keep Obummer's
"5% unemplyment" in tact.
Who needs food anyway when you got GMO pellets?
The prices for small construction machines are still pretty decent.
I own a 10,000 lb Komatsu PC-50 excavator - asking prices are higher than what I paid for the machine 10 years ago.
An operator can charge between $80 and $125 an hour for small jobs in places like in North Jersey, where there is still a lot of work.
I'm thinkin' 2016 is the year that I will be upgrading to some slightly less used equipment myself.
That's in Australia...how about here in Merica..big sales popping up all over.
No. of Farm Machinery Auctions Rising Rapidlyhttp://www.agweb.com/blog/machinery-pete/no-of-farm-machinery-auctions-r...
Dem farmers need to stay employeed to keep Obummer's
"5% unempolyment" in tact.
Who needs food anyway when you got GMO pellets?
I've been seeing shiny new equipment parked along the roadside at small farms recently, rather than the usual older, worn-out equipment.
Me...
And the rest of America...
Me...
Another factor is increased production, building shit like it's going out of style and then when a slow down starts there's machines everywhere. Also, this stuff last for years if taken care of. Kinda like mcdonalds, there's one on every corner.
You do not need to go to Australia for these........when you drive on the I-10 from San Diego to Tucson-have a look on the north side next to Eloy-HUGE area with used CAT machines for sale.....probably many hundreds.....just name your price......
I've seen something similar in Iowa. Buddy of mine farms 1,000 acres. He's very conservative, very reluctant to take on debt. The farm economy is reasonably healthy, and lots of farmers have purchased fancy, big new tractors, combines, etc. in recent years. So my friend goes to auctions and picks up their old combines and wagons and augers on the cheap, usually for around scrap value, and then uses them. $1,200 to $1,500 for John Deere 6600 combines, a few hundred for wagons. Often finds himself bidding against Mennonites, who are also conservative. He has a fleet of 15 or so old combines, all John Deere, and uses some for parts to keep others going. Does almost all of his own repairs, works a lot harder than most farmers. When he needs part he cannot salvage, he buys them on the cheap, next day delivery, from an outfit in Illinois: http://www.shoupparts.com/about/ Since he gets this old equipment at or near scrap value, he could one day recover what little he has invested. What one man views as obsolete junk another man views as essentially free, productive equipment.
So in his business, the price collapse on used equipment is on older equipment that farmers who are not willing to work real hard and who are flush with cash are not interested in. The price collapse is not reflective of weak economics, but rather reflects equipment technology advances and healthy business conditions in recent years.
Or cheap credit bidding up the costs of new equipment by allowing many to purchase it who otherwise could not.
Perhaps some of those reality show operators from Gold Rush should take a look!
I watched a couple of seasons of that show and it seemed they spent half their time fixing machinery.
It always pays to have a backup--and these days, backups come cheap.
Anyone with cash should be looking.
You probably watch Lizard Lick Towing, South Beach Tow, and Storage Wars and think it "reality" as well lmfao
Good, I will be looking for buildings and machinery this Spring.
I could use a big CAT on my 5.7 acres, just to have it sit there and look imposing.
They're great for fighting City Hall...
I could put one to good use clearing rocks off my beach but it would probably cost me a million $$ to ship to Alaska lol....
A "Robust Auction" is what I call it!
Finished loading up on gold...100% long. Excuse me, while I disappear.
And yet a brand new crew cab 4x4 pick-up starts at 35,000 - pick your make. A well equipped model - 50,000. I don't know how it is Ford, Chevy, Dodge, Toyota, etc can expect to find buyers for pick-ups at these prices.
Wait till they sell off those F-35s
At least the CATs do what they were built to.
I have a plan. I want all those cheap earth movers.
Just check out Craigslist in the oil patch. Year old F150 Raptors are going for half the $50-60K that they originally cost.
What am I to do with these worthless pieces of shit? Dont know if I would want them even if they were free. These things are barbarous relics of a bygone era. I cannot build a facebook page with them, I cannot design banner adds with them and driving them to the welfare office would be more trouble than its worth. Maybe the shack I would take, bigger than the entire house behind which I rent a tent in San Francisco and only costs about a months rent...