The EPA finalized its Tier 4 requirements in 2013, affecting engines between 50-75 hp. This year larger engines will be subjected to these emission standards. These changes affect the majority of internal combustion cushion tire and internal combustion pneumatic tire lift trucks with load capacities of 7,000 pounds and higher. The reason many equipment owners are hesitant to purchase the newer Tier 4 compliant models is uncertainty about maintenance requirements, general performance and resale opportunities. Long-term upkeep and equipment performance are also yet to be determined. Used equipment resale data analysis reflects those concerns about Tier 4.
To combat this prejudice, sellers are discounting Tier 4 certified models at prices at or below older non-Tier 4 models. For example, 2012 diesel forklifts are selling, on average 5-10% below 2011 models, which did not have as strict EPA standards. Similarly, 2006 & 2007 models are selling for the same or higher than 2008 or 2009 models.
Aside from price disparities, customers have highlighted their concerns with their purchasing patterns as well—over the past five quarters, internal combustion fork lifts under 5,000 lb. load capacities have seen their share of the market drop from 53% to 47%. Smaller forklift consumers are uncertain about Tier 4 and are moving toward electric forklifts in response to their doubts.
Patrick Dogan is manager of analytics for Equipment Watch, providers of construction equipment valuations and benchmarks. For more information, visit www.equipmentwatch.com.
