Equipment Cost on the Rise

Heavy-equipment costs are rising this year due to increasing demand and higher prices for raw materials, such as engines, fuel and rubber. U.S. diesel fuel prices shot up to nearly $4 per gallon in early April, an 32% annual increase, according to the U.S. Energy Information Administration. Yokohama Tire Corp. cites rubber cost inflation for its coming 10% price hike for off-road tires. Overall prices for new construction machinery in February increased 2% over the same month last year, according to the Bureau of Labor Statistics, while monthly prices for used equipment sold at auctions shot up dramatically over prior years. The uptick in used-equipment prices suggests “a recovery in the construction equipment market as a whole,” according to analysts.