Times
may be tough, but the industry is proving to be tougher. Between direction from
the Industry Future Council to new studies and reports, business leaders receive guidance
this spring on such diverse topics as the healthcare technology market, infrastructure construction opportunities, captive finance options
and credit scoring improvements. The Foundation also will get a
renewed sense of direction as the Board of Trustees meets in April to delve
deeper into the organization’s mission. In short, a new season means it’s time
to shake off the pessimism and take new steps to a better, albeit different,
future (as the IFC states so eloquently in its new report). Read on for more…
Lisa A. Levine, CAE
President
IFC Report Says Resilience and Adaptability Key to Future The “Great Recession” does not
play favorites. No one is immune. The Industry Future Council (IFC), a special
once-a-year gathering of industry leaders, addressed the issue of the economic
melt-down, and the permanent changes made to the equipment leasing and finance
industry because of it, head on during their two day discussion last month.
Each year, the Foundation hosts the IFC,
which is comprised of representatives of each industry segment and ticket sizes
as well as banking, investments banking and private equity. The Council has an
intensive discussion on trends, issues and possible future events that could
affect the industry. A report is then produced from the discussion, which is
meant to be used as a tool for executives in strategic planning.
Monthly Confidence Index Shows Steady Confidence The
industry’s confidence is remaining stable. The Foundation’s Monthly Confidence Index - Equipment Finance Industry (MCI-EFI) for March was 60.1, which is relatively on par with February’s 60.6.
Interestingly, just 2.5 percent of
respondents in March believe that business conditions will grow worse over the
next four months. Forty-five percent said they will be better, with the
remaining 52.5 percent saying conditions will remain the same.
Upcoming Webinars Address Captive Finance and Credit Scoring The Equipment Leasing & Finance Association will host two web seminars this spring on two of the hottest topics
in the industry today: credit scoring and captive finance. The Foundation
recently issued new reports on these two topics, and the webinars will offer an
opportunity to hear from leaders in these areas discuss emerging trends,
changes and ideas straight from the trenches.
Infrastructure Spending: What are the Opportunities? The
Foundation has commissioned a new study from IHS Global Insight, tentatively
titled, Infrastructure Spending: A Bright Spot for Construction Equipment
Financing.
The study will focus on the potential
demand for equipment associated with infrastructure construction. While the
construction industry still struggles with the housing market collapse and
lingering economic downturn, infrastructure construction could present real growth
opportunities for equipment financing companies.
Addressing the Foundation's Mission, Purpose The
Foundation Board of Trustees will be meeting in April to engage in a facilitated strategic planning
session to determine its long-range plans for the Foundation’s resources,
big-picture agenda and new ideas to keep the Foundation’s mission fulfilled.
As Wall Street begins to adjust, recover
and make changes to its lending practices, the Foundation board determined that
exposing analysts and investors to information about equipment leasing and
finance – particularly with an eye on its future – would be appropriate and
helpful to the industry.
Foundation Contributors' Loyalty Unmatched March marks the beginning of fundraising
season for the Foundation. Fortunately, the organization has been privileged to
experience such loyalty from its contributors.
For instance, for more than a decade, Rob
Stowers, Managing Director of Altec Capital has contributed to the Foundation.
He says, “sure, the tougher economic times are more challenging [to give], but
the information is more valuable in my opinion. Anyone thinking long-term knows
the Foundation provides an education benefit.”
Write an Outline Review for Foundation Products Who
do you trust? According to the marketing world, your peers carry more weight
than any other source when it comes to purchasing decisions. And, thanks to the
increasingly social Internet, people now expect that they may make public their
level of satisfaction (or dissatisfaction) with a purchase of a product or
service wherever they visit online.
Foundation Events
Have an idea/topic you’d like to make into a Journal article? The
Foundation always welcomes new ideas for the Journal of Equipment Lease Financing articles. For more
information, please visit our (I think they should go to the Journal site)
“Work With Us” page at the Foundation website at http://www.leasefoundation.org/Work.
The Foundation seeks research study
ideas on an ongoing basis. Ideas should be forwarded to Lisa Levine at LLevine@elfaonline.org The
Foundation Research Committee meets monthly.
New RFPs are now posted
Contributions to the Foundation may be
made online! Visit www.leasefoundation.org/Donate to make your contribution today.
The Foundation Board will meet on
April 20th, September
10th, and November 16th-17th.
The Journal Editorial Review Board
will meet on May 11th, August 5th and November 4th
this year.
Quick Poll
Last Month's Poll
Question -
The number one trend in 2010 that will have the most impact on my business:
Response
%
Customers having access to stimulus funding (ARRA)
4%
Equipment demands produced by the crumbing U.S.
infrastructure
19%
Healthcare spending reaching an all-time high
30%
Diminising competition due to failed equipment finance
companies
15%
Pent-up equipment demand by business, overall
33%
And, tracking with the IFC
Report, “availability of funding” and “regulatory uncertainty created by
proposed healthcare reform, leading healthcare providers to defer equipment
acquisition” were also listed as possible answers.
Did You Know?
While in 2008, the U.S. health care spending growth slowed to 4.4
percent, which is the slowest rate of growth experienced over the past 48
years, total spending on health care has doubled over the past 30 years from
less than 8 percent to approximately 16 percent of gross domestic product (GDP)
in the United States
today. In January 2010, the centers for Medicare and Medicaid Services (CMS)
reported that healthcare spending rose to $2.3 trillion in 2008. The
Congressional Budget Office (CBO) estimates that this percentage will double
again over the next 25 years to over 31 percent of GDP.
If you are interested in taking advantage of the unprecedented opportunities that exist for equipment financing companies in healthcare technology, particularly in IT, there is a resource you don’t want to miss: the new Foundation study, 