FOUNDATION FORECAST

September 2006





A Message From the Executive Director
As your executive director for the last 7 years, I've been privileged to watch the Foundation grow in both good works and reputation. With some of the most insightful and experienced industry leaders giving their time and wisdom to the development of our research projects, the Foundation has been able to double the body of knowledge available to the equipment leasing and finance organization since its inception. To all donors and volunteers who have contributed to this impressive library, thank you. We look forward to formally acknowledging all donors and volunteers at the October ELA Annual Convention. See you in Palm Desert!




Lisa A. Levine, CAE
Executive Director



Business Differentiation Study To Share Secrets of Industry Winners

High performing leasing and finance companies are the envy of all. But, what do these “outperformers” actually do that cause them to exceed industry averages? The latest Foundation research project attempts to answer that question. The study, Business Differentiation: What makes select few leasing companies outperform their peers?, brings new information to the forefront about these “outperformers” by examining the characteristics of leading leasing and financing companies. It will be available for download from the Foundation library in October 2006.

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State of the Industry Report Debut in October

The annual State of the Industry (SOI) Report is widely considered the most important equipment leasing and finance-related report for the industry. This year's report will debut at the ELA convention in October at Palm Desert, California. The SOI combines analyses of ELA's 2006 Survey of Industry Activity (2005 data), independent research and government data, with interviews with key industry executives in all major industry segments to provide a comprehensive picture of the industry in the near-term.


The 2006 State of the Industry Report focuses on a number of topics critical to the industry including leasing and finance companies facing a growing customer demand for offshore capabilities. The increasing globalization of the US economy is creating demand for lessors to offer global financing solutions even for small customers.


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Foundation Donors Get Noticed

The Equipment Leasing Association annual convention is the largest gathering of equipment lessors and financiers each year, and the Foundation has a strong presence at the event. It is the Foundation's opportunity to formally thank the donors who have made possible the multitude of research projects enjoyed by the industry.

We host
special events for donors, such as the invitation-only Cigar and Cordial Night. Additionally, companies who donate $5,000 or more in a year and individuals who donate $1,500 or more annually are invited to be formally recognized on the convention stage during one of the all-attendee luncheons.


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Donors' Spotlight Ð Barry Geister of Anderson Young Associates

Barry Geister, President of Anderson Young Associates, an executive search firm in the equipment leasing and finance industry, is a recent first time donor to the Foundation. He said hearing about the Foundation from other donors is what made up his mind about giving.

   

“Clearly, it is a great organization doing a lot of important work,” he said.  Geister added, “as a service provider, it is imperative that we keep abreast of all changes, subtle and not so subtle, in this dynamic industry. The Foundation offers all industry members an opportunity to examine issues not only of today but in the not-too-distant future as well. I believe supporting the Foundation's efforts is vital.”



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Foundation Happenings
  • The Foundation's research committee meets monthly with 2006 meetings scheduled for October 12, November 15 and December 14.
  • The Foundation seeks research study ideas on an ongoing basis. Ideas should be forwarded to Executive Director Lisa Levine at LLevine@elamail.com.
  • The Journal of Equipment Lease Financing's Editorial Review Board will meet again on October 26.
  • Watch for Foundation product debuts and discussions at these Equipment Leasing Association conferences in 2006: the Captive Conference, Credit and Collections Conference, Operations and Technology Conference, and the ELA Annual Convention.
  • Donations to the Foundation may be made online! Visit http://www.leasefoundation.org/donors/ to make your donation today.

In last month's quick poll we asked:
Which Market Should Foundation Research Address Next? You responded:
Business aircraft - 9%
Alternative energy - 50%
Telecommunications - 9%
Information Technology - 23%
Other - 9%

***The good news isÉ the Foundation is in the process of developing a study on financing alternative energy.

September Quick Poll

What is the most important characteristic that makes a company outperform its competition?
Having a long-term strategic view
Being customer-centric
A strong, talented workforce
Operational creativity
Other



Did You Know?
Non-captives are writing off bad debts at a much higher percentage than Captives (62.5% vs. 3.8%). Non-captives are also instigating legal action at a rate of 15% of default contracts, while Captives report less than 2%. Lessees of Captives are filing for bankruptcy at a much higher rate than the lessees of Non-captives (21% vs 12%). (From the new study:Captive vs Non-Captive: How Their Default Remedies Differ)

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About the Equipment Leasing and Finance Foundation
The Equipment Leasing and Finance Foundation is the only non-profit organization that provides vision for the equipment leasing and finance industry through future-focused information and research. The Foundation provides its publications and resources free to those studying and researching in the equipment lease financing industry and to industry professionals.

Visit our website for more information.