MEAD, Colo.—Backhoes, tractors and graders sat in neat rows in the gravel lot outside Ritchie Bros. Auctioneers.
Inside the bidding hall, an auctioneer’s nasal hum washed over potential buyers sitting in orange stadium seats.
The two-day auction of heavy industrial equipment that ends Friday was on pace to break the $29 million record set in 2007. CEO Peter Blake said sales and attendance records at other Ritchie Bros. auctions have stemmed from the company’s growth, the economy and other factors.
In Mead, several large consigners were selling newer equipment, said Scott Forke, a vice president for special projects.
“A lot of dealers are having inventory issues just because of the downturn in the economy. A lot of what we have is rental returns or lease returns,” Forke said.
Arvada-based construction company Tarco Inc. was selling scrapers, excavators, a backhoe, pickups, trailers and attachments.
“It’s a move because of the economy,” said Ken Stewart, Tarco vice president of equipment.
Tarco regularly buys and sells at auctions. But this time, it doesn’t plan to buy. The head count at Tarco is down about 60 percent to 75 people. In a good summer, it could have 400 employees.
Tarco has adjusted to the slowdown in Colorado projects by accepting jobs in Wyoming. “There’s nothing going in Colorado,” Stewart said.
About 2,400 buyers from 48 states and some 20 countries had registered for the Colorado auction by midday Thursday. Customers could bid online, by proxy and in person for nearly 2,000 items.
Canada-based Ritchie Bros. Auctioneers has 39 auction sites around the world. It said it sold almost $75 million of heavy equipment and trucks at an auction in Florida last week to set a company record for three-day U.S. auctions.
Ralph Perkins, 60, of Parker spent Thursday morning at the auction in Mead to see what his excavating company’s equipment might be worth. “We might have to sell ours because the economy is so bad,” he said. Perkins said the prices seemed a little low.
He has been in the business about 40 years, at first only working on housing but adding commercial work in the past five years to stay busy. Perkins is down to a “skeleton crew” of about a half dozen.
“At these auctions, you see people you do business with and against. They’re saying the same thing,” he said.
