With the recent downturns in mining, upturns in construction, especially in New South Wales and Victoria, as well as the impact of the Australian dollar, it has become more critical to provide updated and market- relevant Agreed Value valuations on mobile plant, earth moving equipment, trucks, trailers, plant and equipment for insurance purposes.
In some cases, mobile plant assets may be “undervalued” as the current market demand for construction equipment increases in New South Wales and Victoria, whilst larger items as used in mining, may be “overvalued” due to the current demand and supply situation.
In particular New South Wales and Victoria are seeing construction booms, whilst Western Australia and Queensland are experiencing stagnation in the mining industry.
In addition, interest rates and the devaluing Australian dollar add further pressures to current market values, so too are the competitively priced Chinese manufactured items of earth moving, plant and equipment.
Values are also coming under further pressure for trucks that are now ten years or older as finance companies are reluctant to provide finance.
It is vital in these shifting times for your clients not only to update their Agreed Valuations annually but also to review current agreed values to ensure appropriate insurance coverage.