When you're working with a heavy equipment appraiser, it's common to wonder what makes them stand apart from regular appraisers. Are they really that different from one of the other? You might be surprised at the answer. The level of education, experience and expertise that is used during the appraisal process by a heavy equipment valuation specialist can be truly astounding. Here's a quick look at some of the differences between a standard appraiser and a heavy equipment appraiser as well as some of the additional training that goes into the process of developing the specialty.

How is a heavy equipment appraiser different than a regular appraiser?

• How specialized is your machinery? Though a lot of heavy equipment is similar to other models on the market, there are often any number of features and kits that set your equipment off from the rest of the pack. A regular appraiser will deal with a wide range of items, from cars to copy machines to computers. A heavy equipment appraisal specialist, on the other hand, focuses only on heavy machinery. Because they don't deal with all the rest of the equipment on the market, they're familiar with the many ways that your machinery is unique. This allows them to focus on the fact that you've got the hydraulics upgrade kit and optional backhoe for your loader and value them appropriately.
• What condition is your machinery in? A regular appraiser have a grasp of the fact that it's pretty common for construction equipment to have a few scratches and dents in the course of its daily use, but are they able to recognize the difference between everyday wear and real abuse in the field? Because a heavy equipment valuator is constantly working with machinery that is active in the field, they have a strong grasp of what that equipment should look like and how it should act and react on the job site. This allows them to make an appropriate valuation because they know that your equipment is used, not abused, and they calculate the value of that machinery accordingly.
• Are there any potential failures that can be prevented to save money and improve value? A regular appraiser doesn't know your heavy equipment as intimately as a heavy equipment specialist does. Because they work with only heavy equipment on a daily basis, they get to know that equipment, including its potential points of failure. They're familiar with many of the signs that key components that are common issues with a particular model are starting to fail, such as a pulley going slightly out of alignment, a hydraulic leak that doesn't seem like much now and similar areas of concern. This allows you to make inexpensive repairs on smaller systems before they crash the entire machine.

When you need to have heavy machinery valued and have the choice between a regular appraiser and a heavy equipment appraiser, understanding the differences between the two can mean hiring the right person for the job or ending up with a poor appraisal that doesn't take the intricacies of your equipment into account. Make sure that when you're having your equipment appraised that you insist on a certified equipment appraiser that has experience in your industry to ensure that you're getting your money's worth and an exceptional appraisal report for your investment.

As the economy continues to lumber on, a wide range of markets and industries are being impacted in the process. But what about heavy machinery? Current projections are showing growth in the heavy construction equipment market as global economies continue to crawl out of the last downturn. What does that mean for your machinery values? Here's some insight into how heavy equipment appraisal values will be impacted in the upcoming years.

How is the changing market impacting heavy equipment appraisal?

A recent report issued by Markets and Markets created a global forecast of heavy construction equipment by type, end-use industry, application and region out to 2021. It's projections estimate that the industry will grow by a compounded rate of 7% per year, from $121.46 billion in 2015 to nearly half again that at $180.66 billion by 2021. This is in line with estimates of growing government spending on infrastructure projects, increasing population needs and increased construction in developing countries. Earthmoving equipment is expected to lead the charge as new projects break ground. In all aspects of heavy equipment, the heavy hitters in the industry are already positioning themselves to take advantage of this construction boom. Where do your equipment values stand in the process?

As demand for construction equipment rises, some portion of that will be taken up by new equipment produced by industry leaders. But in many circumstances, the demand for used equipment will actually rise as well. In developing countries, many governments would rather invest in second-hand equipment that will allow them to achieve the same amount of work without having to make as much of an investment in the beginning of the development process. Construction companies that are forming to take advantage of the projected growth will want to maximize the value of their capital, making used equipment an excellent investment. As demand for this equipment rises, so does your equipment values.

As the market grows, you'll want to be in a position to take advantage of the opportunities that growth presents. Part of being able to do so is tied up in what assets you have available to secure funding for business expansion and upgrades. As the used equipment market grows, your equipment values also increase. By getting an updated construction equipment valuation, you can receive solid documentation of the increased value, allowing you to use that value as leverage with your financial institution.

What's more, an equipment valuation report created by a certified equipment appraiser uses methodology that has been proven to stand up in legal, financial, insurance and tax agency circles. That means when your tax assessor's office assumes that the growth in the industry means you should have a much higher tax on your equipment, you already have the documentation needed to fight the unfair assessment.

With the projected growth in the market, we can expect to see solid changes in heavy equipment appraisal values as time marches on. Are you ready for this upcoming growth? If you haven't had a recent equipment valuation, you may be missing asset value that you could use to your business' benefit as this growth takes place.