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US Equipment Finance Market Study Gets Attention
Posted 02/14/08
The US Equipment Finance Market Study, produced for the Foundation by Global Insight, shows the industry and various stakeholders – from Wall Street to the media – that the equipment leasing and finance industry is expansive, growing, and a major player in the U.S. economy. The study reveals the most accurate picture yet of the domestic equipment finance sector: of the $1.1 trillion invested in plant, equipment and software in 2006, 55 percent or $600 billion is financed through loans, leases and lines of credit (please see Figure 2: Public & Private Investment in Equipment and Software, page 8). Says Foundation Executive Director, Lisa Levine, “this study provides hard evidence that the equipment finance sector is a significant contributor to capital formation in the U.S. economy, and clearly people are getting the message.”Media attention for the study included stories in Reuters, CFO.com, American Banker, The National Association of Credit Managers’ newsletter, Transport Topics and others. Wall Street analysts also received the report, as well as various organizations, such as the National Association of Manufacturers, American Bankers Association and others.
The study points out that equipment finance includes loans, leases, and lines of credit secured by plant or equipment assets, and investment in plant and equipment utilization is primary to business operations and directly impacts the commercial economy. Financing of such activity is a form of capital formation (please see Figure 4: Financing Methods – Weighted by Purchase Amount & Company Size, page 10).
The U.S. Equipment Finance Market Study is available free of charge at the Foundation store.
Sites of Reference:
http://www.store.leasefoundation.org/product/market_study/
http://www.leasefoundation.org
