In 2025, North American contractors are experiencing a maddening dilemma: road graders are scarce. Whether you want to purchase a new lease from a dealer or buy a low-hour used road grader, wait times are lengthy, and costs are on the rise. The need for road graders indicates that the road grader market is specifically growing in the market.

From supply chain backlogs to infrastructure construction booms and changing manufacturing priorities, a perfect storm of events is putting pressure on availability. Let's get into why this vital piece of machinery has become so difficult to come by and what it portends for the construction sector.

Infrastructure Investment Is Driving Demand

The U.S. and Canadian governments have invested billions of dollars in the upgrade of roads, highways, and rural transportation networks. Overall, the construction projects have increased on both rural and urban sites. The Infrastructure Investment and Jobs Act (IIJA) continues to pour money into civil projects. Many of which are dependent on motor graders for road shaping, fine grading, and maintenance.

As increasing numbers of projects come on full motion, graders have been in high demand, particularly in states with old road infrastructures or regions hit by natural disasters. The boom is not fleeting. Indeed, most analysts anticipate higher-than-average grade demand to continue at least through 2027.

OEM Production Capacity Is Still Catching Up

Currently, OEMs, including Caterpillar, Komatsu, and John Deere, are striving to respond to this increase; however, production has not yet reached the pre-pandemic level.

Key production constraints include:

• This could be due to the fact that grade control systems are also experiencing semiconductor shortages.
• A couple of years ago, they encountered some problems with the hydraulic components that were delayed from Asia and Europe.
• Skill shortage in the production workshop.
• High work backlogs on the engines and other related parts, such as the drive train.

As the manufacturing sector improves, back orders by customers from the period 2023–2024 are noted to be fulfilled. Meaning, few units are available for orders in 2025. This is due to the long delivery times that many contractors have been forced to start sourcing their equipment from used equipment sellers and hence the high prices.

Used Graders Are Selling Fast

Purchasers who are unable to wait for new equipment are going to the used grader market, but even that pool is dwindling. Dealers and auction houses say:

1. Quicker sell-through rates (occasionally in days)
2. Above-average bidding activity
3. 20–30% year-on-year rises in resale values

Low-hour equipment is particularly sought after. A lot of fleet managers are not willing to part with well-cared-for machines, knowing they cannot easily replace them. This behavior is further perpetuating the shortage.

Rental Fleets Are Running Dry

Rental firms are also not an exception to this. This has facilitated rental requirements as purchasing new graders is a herculean task and used models are extraordinarily expensive. Accordingly, availability has decreased, while the rates have gone up.

This has a greater impact on small and mid-sized contractors. Most people hire graders on a short-term basis for projects that will take one or a few months at most. With limited rental fleets, the timelines for projects are being extended while the bids have proved to be difficult in terms of determining how much they will cost.

Import Tariffs and Trade Policy Uncertainty

Late in the fifth period, the U.S government imposed new tariffs on machinery parts and equipment imported from China, Mexico, and Canada. These tariffs imposed high costs on the imported grader parts, together with limiting the production rate in North America.

Some OEMs have been conservative about increasing production or participating in new supplier contracts due to further trade policies. Due to manufacturers’ disinclination towards long-term goals or commitments, further disruptions are still possible in the grader industry.

Technology and Emission Rules Add Complexity

We live in an advanced era, and technology integration in heavy construction equipment is no longer surprising. We have seen and continue to witness the advancement and integration of new things in road graders and machines. These innovations are useful for the telecommunications industry, but they also:

• Require more specialized components
• Depending on reliable chip supplies
• It takes longer to assemble and to calibrate

In this case, tighter tort and emission standards that include Tier 4 and stage V in North America and Europe respectively continue to put pressure on manufacturers by encouraging them to drop manufacturing old models and redesign their upcoming models. This transition is therefore reducing output for the meantime.

Last Words

The North American lack of road graders isn't a fleeting inconvenience; it's an outcome of coalescing economic, political, and industrial events. With good construction demand and restricted availability of machines, contractors need to find ways to overcome this.

As manufacturers scramble to get back on track and governments keep investing in road infrastructure, things are going to stay tight in 2025. Until then, success is planning, being creative, and keeping your grading equipment in good working order.