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Monthly Confidence Index - Equipment Finance Industry (MCI-EFI)
March 2010
- March Survey Results
- Comments from Industry Executive Leadership
- Respondent Demographics
- Previous Months
- About the Monthy Confidence Index
March 2010 Survey Results:
The overall MCI-EFI is 60.1, on par with February 2010 index of 60.6.
- When asked to assess if their current business conditions would remain the same over the next four months, 45 % of executives responding said they believe business conditions will improve over the next four months. 2.5% believe conditions will get worse, and the majority, 52.8% believe business conditions will remain the same over the next four months.
- 60% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will "remain the same" over the next four months while 35% indicated there will be an increased demand for leases or loans to fund capex, up from February's index of 31% of CEOs who believed their would be an increase in demand.
- 67.5% of the survey respondents indicate they expect the "same" access to capital to fund business, up from 61.9% in February. 30% of executives expect more access to capital to fund equipment acquisitions over the next four months.
- When asked, 25% of the executives reported they expect to hire more employees over the next four months, up slightly from 23.8% in February, and 60 % expect no change in headcount over the next four months, compared to 52.4% from February 2010.
- 100% of the leadership evaluates the current U.S. economy as "poor" or "fair." In March, 57.5% rated the economy as "fair," compared to February when 59.5% of respondents rated the economy at "fair."
- 35% of survey respondents believe the U.S. economic conditions will get "better" over the next six months, down from February's response of 42.9%. 62% of survey respondents indicate they believe the US economy will "stay the same" over the next six months, up from 52.4% in February.
- 30% of respondents believe their company will increase spending on business development activities during the next six months, while 62.5% believe their will be "no change" in business development spending.
March 2010 Survey Comments from Industry Executive Leadership:
Depending on the market segment they represent, executives have differing points of view on the current and future outlook for the industry.-
Bank Sector:
Russell D. Nelson, Farm Credit Leasing, "We expect our customer base and industries served will see increased appetite for capital expenditures and lease financing during the 2nd Quarter and escalate the remainder of the year. This is predicated on improving economic conditions in the United States and globally. The future of the industry remains bright, and dependent on the pace of recovery." -
Independent Financial Services:
George Booth, Black Rock Capital, Inc., "Demand is starting to improve. Banks are becoming more realistic regarding modifications; however liquidity is still major problem with very little to no access to funds." -
Captive Market:
Anthony Pacchiano, ADP Commercial Leasing As the recession slows and the parent's sales begin to show upward movement, the leasing and financing activity of the captive will follow as well. The captive may become more important and better utilized to get the "fence sitters" to make a decision on the product purchase."
