We fully understand the current market and the 2015 outlook and as a result we will be steadily buying for the outlook of increased demand once the currency stabilizes along with the oil price.
League City, Texas (PRWEB) January 24, 2015
“Like any industry, understanding the economic forecasts will be instrumental in positioning our company for continued growth and success,” said Milissa Wise, director of operations for Expert Heavy Equipment, which is a Marine-Veteran owned wholesaler of used heavy equipment.
According to Ernest & Young’s most recent quarterly report on the oil industry, the oil-price collapse will facilitate increased global transaction activity in 2015 as companies revise and implement new strategies. Expert Heavy Equipment intends to contribute in this increased activity. Wise added, “The smaller energy companies will fold and be acquired by the larger companies. The overall landscape; however, will still incur increased transactions.”
In its latest market outlook, the International Energy Agency (IEA) said that oil production growth in 2015 will be 350,000 barrels per day lower than previously expected, to 950,000 barrels per day. Supply will still grow significantly in 2015, just not as much as previously thought. The supply cuts are expected to come from non-OPEC countries like Canada, the U.S., Colombia, and Russia.
Wise pointed out that this shake up in the oil sector directly impacts the global demand of used construction equipment. Oil is traded in US dollars. As the price of oil declines, so does the currency of exporting countries. Wise continued to explain that the overseas buyers have less buying power to purchase equipment. Wise continued, “You will see a direct correlation between oil and equipment pricing. It just won’t be as significant. The U.S. oil boom was good while it lasted, but 2015 brings the reality of low oil prices and falling profits for oil producers. The demand continues for used heavy equipment but there will be a price correction in terms of resale values.”
"Understanding the demand and the economic outlook will be critical in understanding the market demands and affects on pricing for used heavy equipment.," Wise said, “We fully understand the current market and the 2015 outlook and as a result we will be steadily buying for the outlook of increased demand once the currency stabilizes along with the oil price.”
EHEs goals are to become the go-to resource for buyers and sellers alike, by offering the best pricing possible. In addition, their long term goal is to become an industry leader by changing the traditional business model with their on demand inventory and strategic marketing. More targeted short-term goals are to increase new business development by 29% in 2015 within this challenging economic outlook.
For more information, please visit: http://www.experthe.com/.