Construction Equipment Sales Rose Amidst Used Value Drop
Manufacturers reported record revenue in 2026 as demand for new machinery surged despite declining used market prices.
Updated on Sept. 23, 2026 in Construction
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Major construction equipment manufacturers recorded significant sales growth through the third quarter of 2026, driven by infrastructure and data center demand. Simultaneously, the market for used machinery experienced a sharp decline in auction values during August 2026.
Why it matters
The divergence between high new equipment sales and falling used values reflects a market shift where developers prioritize modern, high-performance machines. Meanwhile, an influx of aging equipment has increased supply, exerting downward pressure on the resale market.
Caterpillar reported $20.5 billion in second-quarter 2026 sales, a 24% year-over-year increase, while John Deere's construction division reached $3.6 billion in sales. Used equipment auction values fell 18.22% in August 2026 as the average machine age rose 6.97%.
The players
Caterpillar
This Irving, Texas-based corporation is the world's leading manufacturer of construction and mining equipment.
John Deere
This company is a major producer of machinery for agriculture, construction, and forestry with significant operations in Moline, Indiana.
Volvo Construction Equipment
This is a global manufacturer of heavy equipment that operates assembly facilities within the United States.
The details
Caterpillar utilized a new joint venture with its dealer network to support hyperscale data center construction, while Volvo Construction Equipment expanded U.S. assembly to avoid import surcharges. Demand remains robust for machines capable of executing large-scale energy and non-residential projects.
Timeline
August 2024 served as the comparison baseline for equipment auction values.
Caterpillar recorded record sales volume during the second quarter of 2026.
Caterpillar hosted an earnings call with analysts on August 4, 2026.
John Deere held its quarterly earnings call on August 20, 2026.
Used construction equipment auction values dropped 18.22% in August 2026.
Market Landscape
The surge in heavy equipment demand mirrors the rapid acceleration of hyperscale data center construction. This shift positions major manufacturers like Caterpillar to capture long-term value from infrastructure spending despite cooling conditions in the secondary machinery market.
Contractors may find increased opportunities to acquire affordable used machinery as auction values remain depressed. Meanwhile, companies managing large projects may face extended wait times for new, specialized equipment due to high developer demand.
The takeaway
Builders should consider the current market as a prime window for refreshing fleets with reliable, used machinery while prices are low. Professionals should also prepare for high demand for new equipment to persist as infrastructure and energy projects continue to expand.
Further reading
For additional insight on industry trends, explore the Construction section.
Source note: This article includes information reported by Engineering News-Record (ENR) magazine.
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