While shopping around for a used piece of construction equipment through the usual channels has taken some creative sourcing in recent years, this summer has seen prices stabilize for the most part. And with other major indicators such as machine age and usage coming down more in line with historic trends, the worst of the COVID-19 pandemic-era shortages appears to be over.

“Right now we’re seeing values going down, age decreasing and more new OEM (original equipment manufacturer) equipment get on the market,” says Nick Holsinger, strategic account manager with EquipmentWatch. “We’re also hearing from our OEM partners that the chip shortage is behind us as well.”

A shortage of the sophisticated electronic control chips—found in many models of construction equipment and automobiles—due to pandemic-related production shortages was a major driver in the constricted supply of new machines these past years, Holsinger explains. The OEMs are taking the lessons of that era to heart. “Just-in-time manufacturing is probably dead for now,” he adds.

Some OEMs themselves agree. “We continue to see improvement in the supply chain,” said Caterpillar Inc. CEO Jim Umpleby on the company’s second quarter investor call Aug. 2. “However, areas of challenge remain, particularly for large engines.”

But don’t expect a glut of new equipment any time soon. On John Deere’s third quarter earnings call held Aug. 18, Deere Chief Financial Officer Joshua Jepsen noted that while orders are full this year for the company’s construction and forestry division, he doesn’t expect a big ramp up in production. “On the order book that we have, we’re looking at similar production rates in 2023 to 2024,” he said.

But rather than taking that as a sign of another supply bottleneck coming, Holsinger says this and other indicators can also be taken to mean the equipment market is getting back to something resembling normal. “We are seeing a continued decrease in values and age as more production models are released to the market,” he says.

And there are clear signs in July’s numbers that this slow decline is continuing. But there are other factors to consider as well, he warns. “One thing we cover is owner-operator costs, and for a machine like a Cat D8T, those costs have nearly doubled.” For a popular model like the D8T crawler dozer, a jump in operating costs is unusual, says Holsinger.

“Just the cost-per-hour of operating it has gone way up,” Holsinger says. Whether it’s cost of spare parts, labor or maintenance, operating costs have been creeping up steadily for several categories of machines, according to the latest EquipmentWatch data.

But then, with the prices consistently going down at resale and auction you might be more likely to find a good deal on a secondhand machine than in recent years. “That’s good news for contractors— maybe not so good news for resellers and auction markets,” observes Holsinger.