What An Industrial Depression Looks Like: Photos From An Australian Heavy-Machinery Auction

Was: $2.9m | Now: $15,000: Caterpillar 992C wheel loader

Caterpillar 992C wheel loader

What An Industrial Depression Looks Like: Photos From An Australian Heavy-Machinery Auction:

Two weeks ago, when looking at the latest Caterpillar retail sales data…

CAT 2

… we said that “If Caterpillar’s Data Is Right, This Is A Global Industrial Depression.”

Today we get visual evidence of this, courtesy of an Australian heavy industrial equipment auction where machines such as a Caterpillar 992C wheel loader, which normally costs $2.9 million, can now be bought for just $15,000, a 99% discount!

As Australia’s ABC reports, now that the commodity bubble has burst for good, auctioneers are hard at work selling tens of millions of dollars of suddenly useless coal mining machinery for just a fraction of its original market value.

Read moreWhat An Industrial Depression Looks Like: Photos From An Australian Heavy-Machinery Auction

If Caterpillar’s Data Is Right, This Is A Global Industrial Depression

H/t reader squodgy:

“Like I said before, Cat’s products form the first stage of any large project.

If they have no orders, nobody has any orders & we grind to a halt.

When that happens, we all stand there looking at each other.

Then all hell breaks loose.”

And again, this is the Greatest Depression.


If Caterpillar’s Data Is Right, This Is A Global Industrial Depression:

Most cats bounce at least once when they die, but not this one: after CAT posted its first annual drop in retail sales in December of 2012, it has failed to see a rise in retail sales even once.

In fact, since then Caterpillar has seen 34 consecutive months of declining global sales, and 11 consecutive months of double digit declines!

Why is this important? Because a month ago we asked: “What On Earth Is Going On With Caterpillar Sales?”

Read moreIf Caterpillar’s Data Is Right, This Is A Global Industrial Depression

Caterpillar Sales Have Been Contracting For 33 Consecutive Months! This Is Not A Recession!!!

What On Earth Is Going On With Caterpillar Sales?:

We have been covering the ongoing collapse in global manufacturing as tracked by Caterpillar retail sales for so long that there is nothing much to add.

Below we show the latest monthly data from CAT which is once again in negative territory across the board, but more importantly, the global headline retail drop (down another 11% in August) has been contracting for 33 consecutive months! This is not a recession; in fact the nearly 3 year constant contraction – the longest negative stretch in company history – is beyond what most economists would deem a depression.

CAT retail sales 1

Read moreCaterpillar Sales Have Been Contracting For 33 Consecutive Months! This Is Not A Recession!!!

Forget Recession: According To Caterpillar There Is A Full-Blown Global Depression

… the Greatest Depression.


Forget Recession: According To Caterpillar There Is A Full-Blown Global Depression (ZeroHedge, July 22, 2015):

There has now been an unprecedented 31 consecutive months of CAT retail sales declines. This compares to “only” 19 during the near systemic collapse in 2008.  In other words, if global demand for heavy industrial machinery, as opposed to unemployed millennials’ demands for $0.99 Apple apps, is any indication of the true underlying economy, forget recession: the world is now in a second great depression which is getting worse by the month.

For Caterpillar, This Is What The “Second Great Depression” Looks Like

Welcome to the recovery!

Welcome to the Recovery (New York Times, by Timothy Geithner, August 2, 2010)


For Caterpillar, This Is What The “Second Great Depression” Looks Like (ZeroHedge, May 20, 2015):

To put Caterpillar’s ongoing second great depression in context, during the Great Financial Crisis, CAT suffered “only” 19 months of consecutive retail sales declines. As of April 2015, this number is now 29, and there is no hope in sight of seeing an annual rebounce any time soon.

Caterpillar Suffers Worst Month Since Lehman, 26 Consecutive Months Of Declining Retail Sales

Caterpillar Suffers Worst Month Since Lehman, 26 Consecutive Months Of Declining Retail Sales (ZeroHedge, Feb 19, 2015):

Once upon a time, Caterpillar was the world’s industrial bellwether and a Dow Jones Industrial staple. Lately, in addition to suddenly developing a very close relationship with Federal authorities who “are investigating the movement of cash among Caterpillar Inc. ’s U.S. and overseas subsidiaries”, CAT has become a completely ignored and forgotten poster name of the “old-economy” (the on in which cash flow still mattered). However, there are those who still believe that the second coming “eyeballs” as the only valuation term category is destined to end in tears, and as such care about how companies like CAT do.

Sadly, we have some more bad news: Caterpillar just reported that in January, it suffered its worst retail sales month since Lehman, with global sales plunging 14% from last January (when sales in turn had dropped 8% from a year before, while the year before had slid 3% from the year before that and so on). In fact, January was so bad, it was the first month since 2013 when CAT reported declining sales across all regions in which it does business, now that the dead CAT bounce in North America is over.

 …

Caterpillar Retail Sales Plunge By 13%, Most Since February 2010; Decline For 17 Consecutive Months

Caterpillar Retail Sales Plunge By 13%, Most Since February 2010; Decline For 17 Consecutive Months (ZeroHedge, May 20, 2014):

The drubbing in sales across all other markets excluding the US continued, with sales in Asia/Pacific, EAME and Latin America all dropping by more than 20% compared to last year.

End blended result: global retail sales have now declined Y/Y for 17 consecutive months, which incidentally is just shy of the longest stretch of declining retail sales on record. Worse: the -13% drop in world retail sales matched the biggest annual drop since February of 2010.

 

Caterpillar Global Sales Down 12%, Crushes Recovery Hopes With Negative Sales Around The World

Caterpillar Global Sales Down 12%, Crushes Recovery Hopes With Negative Sales Around The World (ZeroHedge, Dec 19, 2013):

Among other things, the month of November was memorable because for the first time, Caterpillar – that bellwether of the old industrial economy in which “stuff” was actually made, dug out of the ground, erected, or otherwise processed instead of merely hosted ad impressions – posted declining retail sales in every region around the globe. This was the first time of uniform declining retail sales since February 2010. To say that this data conflicts massively with all the rumors, fairytales and lies about a global recovery, is an understatement which is why it has not been mentioned anywhere, in hopes the subsequent month would demonstrate some improvement and perhaps an upward inflection point. That did not happen.

Read moreCaterpillar Global Sales Down 12%, Crushes Recovery Hopes With Negative Sales Around The World