Equipment Finance Industry Confidence Steady in June

Washington, DC, June 16, 2022 – The Equipment Leasing & Finance Foundation (the Foundation) releases the June 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 50.9, steady with the May index of 49.6.

When asked about the outlook for the future, MCI-EFI survey respondent Glenn Davis, President, RESIDCO, said, “Interest rates are a major concern. Uncertainties related to Fed action or inaction, as well as the continuing war in Ukraine will weigh heavily on the economy.”

June 2022 Survey Results:
The overall MCI-EFI is 50.9, steady with the May index of 49.6.

  • When asked to assess their business conditions over the next four months, 11.1% of executives responding said they believe business conditions will improve over the next four months, an increase from 6.9% in May. 55.6% believe business conditions will remain the same over the next four months, down from 62.1% the previous month. 33.3% believe business conditions will worsen, an increase from 31% in May.
  • 11.1% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 10.3% in May. 66.7% believe demand will “remain the same” during the same four-month time period, an increase from 65.5% the previous month. 22.2% believe demand will decline, down from 24.1% in May.
  • 22.2% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 13.8% in May. 77.8% of executives indicate they expect the “same” access to capital to fund business, a decrease from 86.2% last month. None expect “less” access to capital, unchanged from the previous month.
  • When asked, 29.6% of the executives report they expect to hire more employees over the next four months, down from 48.3% in May. 66.7% expect no change in headcount over the next four months, an increase from 44.8% last month. 3.7% expect to hire fewer employees, down from 6.9% in May.
  • 7.4% of the leadership evaluate the current U.S. economy as “excellent,” an increase from 3.5% the previous month. 74.1% of the leadership evaluate the current U.S. economy as “fair,” down from 79.3% in May. 18.5% evaluate it as “poor,” an increase from 17.2% last month.
  • 7.4% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, an increase from 3.5% in May. 37% indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 27.6% last month. 55.6% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 69% the previous month.
  • In June 40.7% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 34.5% the previous month. 59.3% believe there will be “no change” in business development spending, down from 65.5% in May. None believe there will be a decrease in spending, unchanged from last month.

June 2021 MCI-EFI Survey Comments from Industry Executive Leadership:

Bank, Small Ticket
“The equipment leasing and finance business adapts to change and finds ways to win in difficult environments. The rising rate environment is a healthy change from the past decade and creates the opportunity to build margin back into business models and strengthen the community.” David Normandin, CLFP, President and CEO, Wintrust Specialty Finance

Independent, Small Ticket
“When the supply chain is repaired, and should demand evaporate, we will have a bigger issue than we do today.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC

Bank, Middle Ticket
“Supply chain issues continue to linger, especially with light duty trucks. We continue to see interest from our customers with large expansion projects to lock in rates while they remain at historically low levels.” Michael Romanowski, President, Farm Credit Leasing

ABOUT THE MCI

Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment, and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.

Who participates in the MCI-EFI?
The respondents are comprised of a wide cross-section of industry executives, including large-ticket, middle-market and small-ticket banks, independents, and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.

How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, asking the respondents’ opinions about the following:

  1. Current business conditions
  2. Expected product demand over the next four months
  3. Access to capital over the next four months
  4. Future employment conditions
  5. Evaluation of the current U.S. economy
  6. S. economic conditions over the next six months
  7. Business development spending expectations
  8. Open-ended question for comment

How may I access the MCI-EFI?
Survey results are posted on the Foundation website, https://www.leasefoundation.org/industry-resources/monthly-confidence-index/, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.

###

Media Contact: Charlie Visconage, cvisconage@leasefoundation.org

Equipment Leasing & Finance Foundation Announces 5th Annual “Day Of Giving” On June 7th

24-Hour Fundraising Campaign Provides Individuals and Companies Opportunity to Give Back to the Equipment Finance Industry, Receive Exclusive Webinar Invitation

 Washington, DC, June 6, 2022 – The Equipment Leasing & Finance Foundation is designating tomorrow, June 7, as a Day of Giving” for everyone who has benefitted from the wide range of industry research, programs and resources the Foundation provides. This is the fifth annual Day of Giving, which is intended to attract new donors and remind people of the lasting impact they and their companies make when they support the Foundation’s mission to propel the equipment finance industry forward. The Foundation hopes to attract 150 new and returning donors and raise $75,000 during its 24-hour marathon fundraiser. All giving levels are welcome.

This year the Foundation is offering a special benefit to show its appreciation for the generosity of Day of Giving donors. They will receive an invitation to attend an exclusive webinar presentation by Dr. Rob Wescott of Keybridge Research on the Q3 update to the Foundation’s 2022 Equipment Leasing & Finance U.S. Economic Outlook, to be held on July 26 at 1 p.m. EDT.

As part of the Day of Giving campaign, the Foundation is highlighting popular and new resources it has released and programs it has conducted over the last year, which are made possible entirely through individual and corporate donations. Among the vast array are:

“This Day of Giving is great way to acknowledge the value that the Foundation’s many resources provide to our businesses and our own professional development, which are unavailable anywhere else,” said Shari Lipski, Principal, ECS Financial Services, Inc., Foundation Trustee, and National Development Committee Chair. “Making a donation today supports everyone who benefits from participating in the equipment finance industry.”

Donations can be made online at https://www.leasefoundation.org/giving/online/, or by check to the Equipment Leasing & Finance Foundation, 1625 Eye St NW, Suite 850, Washington, DC 20006.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.

###

Media contact: Charlie Visconage, cvisconage@leasefoundation.org

Equipment Finance Industry Confidence Dips Further in April

Washington, DC, April 21, 2022 – The Equipment Leasing & Finance Foundation (the Foundation) releases the April 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 56.1, a decrease from the March index of 58.2.

When asked about the outlook for the future, MCI-EFI survey respondent Jim DeFrank, EVP and Chief Operating Officer, Isuzu Finance of America, Inc., said, “There is huge pent-up demand for all kinds of products. In the transportation space, the final mile vehicles are in great demand, and we see this continuing for at least 12 to 18 months. Once the supply chain catches up, we will see some kind of normalcy return to the equipment finance industry.”

April 2022 Survey Results:
The overall MCI-EFI is 56.1, a decrease from the March index of 58.2.

  • When asked to assess their business conditions over the next four months, 14.8% of executives responding said they believe business conditions will improve over the next four months, a decrease from 21.4% in March. 63% believe business conditions will remain the same over the next four months, up from 50% the previous month. 22.2% believe business conditions will worsen, a decrease from 28.6% in March.
  • 29.6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 25% in March. 55.6% believe demand will “remain the same” during the same four-month time period, a decrease from 75% the previous month. 14.8% believe demand will decline, up from none in March.
  • 22.2% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 21.4% in March. 77.8% of executives indicate they expect the “same” access to capital to fund business, a decrease from 78.6% last month. None expect “less” access to capital, unchanged from the previous month.
  • When asked, 40.7% of the executives report they expect to hire more employees over the next four months, down from 46.4% in March. 59.3% expect no change in headcount over the next four months, an increase from 50% last month. None expect to hire fewer employees, down from 3.6% in March.
  • 14.8% of the leadership evaluate the current U.S. economy as “excellent,” an increase from 3.6% the previous month. 74.1% of the leadership evaluate the current U.S. economy as “fair,” down from 85.7% in March. 11.1% evaluate it as “poor,” a slight increase from 10.7% last month.
  • 7.4% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, relatively unchanged from 7.1% in March. 51.9% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 57.1% last month. 40.7% believe economic conditions in the U.S. will worsen over the next six months, an increase from 35.7% the previous month.
  • In April 29.6% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 42.9% the previous month. 66.7% believe there will be “no change” in business development spending, up from 57.1% in March. 3.7% believe there will be a decrease in spending, up from none last month.

April 2021 MCI-EFI Survey Comments from Industry Executive Leadership:

Independent, Small Ticket
“The Russian-Ukraine war will have economic fallout around the world for the near term.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC

Independent, Middle Ticket
“The Fed’s stated position to raise rates to try to tame inflation will begin to have consequences in the economy. As consumers spend their leftover stimulus funding this year, there will be less money available for discretionary spending, and the rapidly rising costs of staples will hurt those at the lowest end of the income spectrum.” Bruce J. Winter, President, FSG Capital, Inc.

ABOUT THE MCI

Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment, and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.

 Who participates in the MCI-EFI?
The respondents are comprised of a wide cross-section of industry executives, including large-ticket, middle-market and small-ticket banks, independents, and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.

How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, asking the respondents’ opinions about the following:

  1. Current business conditions
  2. Expected product demand over the next four months
  3. Access to capital over the next four months
  4. Future employment conditions
  5. Evaluation of the current U.S. economy
  6. S. economic conditions over the next six months
  7. Business development spending expectations
  8. Open-ended question for comment

How may I access the MCI-EFI?
Survey results are posted on the Foundation website, https://www.leasefoundation.org/industry-resources/monthly-confidence-index/, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.

###

Media Contact: Charlie Visconage, cvisconage@leasefoundation.org

Q2 2022 Equipment Leasing & Finance Industry Snapshot Now Available

The Equipment Leasing & Finance Foundation has released the Q2 2022 Equipment Leasing & Finance Industry Snapshot, an indispensable information resource for industry participants. Designed for use in executive briefings and presentations, the presentation slide deck summarizes the current conditions and projections for the U.S. economy and equipment finance industry with clear, easy-to-digest charts and short narratives of key trends.

Among the range of details in the new release:
• Overall, the Foundation projects the U.S. economy will grow by 2.8% in 2022. Growth will likely be driven by a gradual unraveling of supply chains, business investment, and continued consumer spending.
o The U.S. economy expanded to a 6.9% annualized pace in Q4 2021, with most of the expansion due to a buildup in inventories.
Economic tailwinds for growth this year include:
o A robust labor market with plentiful job openings and strong wage growth in several industries, which is providing consumers with support in the face of high inflation, falling savings, and geopolitical uncertainties.
o A healthy housing market driven by strong demand and limited inventories.
Economic headwinds include:
o Worsening inflation pressures which are expected to remain high in the near term.
o New challenges to supply chains, already strained by the pandemic, due to Russia’s invasion of Ukraine and COVID-related lockdowns in key Chinese industrial cities.
Additional factors to watch include:
o Stagflation due to persistently high inflation and expectations for slowing growth this year.
o Action by the Federal Reserve to tamp down inflation by raising interest rates without causing a recession.
o Geopolitical fallout of the Russian war in terms of global trade impacts, and the possibility of future conflicts (e.g., China and Taiwan).
Equipment and software investment is expected to recover over 2022 as business conditions stabilize following volatility caused by geopolitical tensions. Equipment and software investment is projected to expand by 4.2%, a slower pace than in 2021, which was the strongest year in a decade.
New business volume growth reported in ELFA’s Monthly Leasing and Finance Index eased in Q1 after a record year in 2021. It expanded 4% year over year in February. Healthy business investment growth is expected to drive new business volume growth throughout 2022, though year-over-year growth may ease compared to the double-digit expansion last year.

Prepared by Keybridge Research and updated quarterly, the snapshot is available for free download at https://www.leasefoundation.org/industry-resources/industry-snapshot/

Media contact: Charlie Visconage, cvisconage@leasefoundation.org

Q2 Update to the 2022 Economic Outlook Forecasts 4.2% Expansion in Equipment and Software Investment Growth and 2.8% GDP Growth

Washington, DC, April 14, 2022 – After its strongest growth in over a decade in 2021 and solid performance in Q1, equipment and software investment growth of 4.2 percent is forecast for 2022. Annual U.S. GDP growth for 2022 is forecast at 2.8 percent, according to the Q2 update to the 2022 Equipment Leasing & Finance U.S. Economic Outlook released today by the Equipment Leasing & Finance Foundation. The Foundation’s report, which is focused on the nearly $1 trillion equipment leasing and finance industry, highlights key trends in equipment investment and places them in the context of the broader U.S. economic climate.

Nancy Pistorio, Foundation Chair and President of Madison Capital LLC, said, “At such a volatile time, this report provides valuable intelligence on the wide range of conditions that are impacting the U.S. economy and business investment. While it is encouraging that jobs are plentiful, the housing market is strong, and the pandemic is unlikely to be a major headwind unless a new variant emerges, the economic outlook is cloudier than it was at the start of the year. However, the equipment finance industry is still expected to expand at a moderate pace.”

Highlights from the Q2 update to the 2022 Outlook include:

  • After expanding a robust 13.1 percent in 2021, equipment and software investment is forecast to grow 4.2 percent (annualized) in 2022 as Russia’s war on Ukraine and ensuing uncertainty have muddled the outlook in several end-user markets.
  • Though an exceptionally strong labor market and robust housing growth has the U.S. economy on track for 2.8 percent growth this year, downside risks are mounting. Sanctions on Russia, economic turmoil, and supply chain shocks are all likely to contribute to sustained high inflation, and the risk of “stagflation” looms.
  • The U.S. manufacturing sector held steady in early 2022, but high energy prices and surging costs for other key inputs will likely weigh on activity later this year. Many of the supply chain issues last year appear set to return due to the Russia-Ukraine war and China’s response to COVID surges in major economic centers.
  • On Main Street, firms are generally holding their own as of early April, and an end to most pandemic operating restrictions has boosted demand. However, small businesses continue to contend with staff shortages and supply chain disruptions, which are both contributing to soaring inflation.
  • The Federal Reserve adopted a more hawkish posture in Q1 as inflation rose. After raising interest rates by 25 basis points (bps) in March, it is expected to raise rates another 100 bps by June, and 200 or more bps by the end of the year. Whether the Fed can reduce inflation without causing a sharp slowdown or recession is a huge unknown.

The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is released in conjunction with the Economic Outlook, tracks 12 equipment and software investment verticals. In addition, the Momentum Monitor Sector Matrix provides a customized data visualization of current values of each of the 12 verticals based on recent momentum and historical strength. Seven verticals are peaking/slowing, four are accelerating, and one is weakening. Over the next three to six months, year over year:

  • Agriculture machinery investment growth is unlikely to improve.
  • Construction machinery investment growth may continue to decelerate.
  • Materials handling equipment investment growth is unlikely to improve.
  • All other industrial equipment investment growth is decelerating, but should stay in positive territory.
  • Medical equipment investment growth may accelerate.
  • Mining and oilfield machinery investment growth will remain in positive territory.
  • Aircraft investment growth will likely remain weak.
  • Ships and boats investment growth will continue to slow.
  • Railroad equipment investment growth should remain elevated.
  • Trucks investment growth is unlikely to improve.
  • Computers investment growth may accelerate.
  • Software investment growth will continue to decelerate, but will likely remain in positive territory.

The full report of the Momentum Monitor is now available at https://www.leasefoundation.org/industry-resources/momentum-monitor/.

The Foundation produces the Equipment Leasing & Finance U.S. Economic Outlook report in partnership with economic and public policy consulting firm Keybridge Research. The annual economic forecast provides the U.S. macroeconomic outlook, credit market conditions, and key economic indicators. The Q2 report is the first update to the 2022 Economic Outlook and will be followed by two more quarterly updates before the publication of the 2023 Economic Outlook in December.

Download the full report at https://www.leasefoundation.org/industry-resources/u-s-economic-outlook/. All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through individual and corporate donations. Learn more at www.leasefoundation.org.

###

Media Contact: Charlie Visconage, cvisconage@leasefoundation.org

New Foundation Study Examines Funding, Securitization and Syndication in the Equipment Finance Industry

Washington, DC, April 12, 2022 – Today the Equipment Leasing & Finance Foundation (Foundation) released a new study, Equipment Finance Funding, Securitization & Syndication: Best Practices for Today and Tomorrow, designed to analyze and report on COVID-19’s impact on the funding markets for the equipment leasing and finance industry. Prepared for the Foundation by The Alta Group, the study reveals that the equipment finance industry performed considerably better than expected through the pandemic due to factors including the SBA’s Paycheck Protection Program, unanticipated dividends from supply chain issues, and increased availability of capital.

The comprehensive study draws on a series of surveys and in-depth interviews conducted with senior industry executives of independent, bank, and captive finance companies; industry lenders; securitization issuers; and ratings agencies. Among the details provided in this wide-ranging study are:

  • How the pandemic’s impact differed from the Great Recession of 2008-2009;
  • What funding tools are available to industry participants;
  • How the funding, securitization, and syndications markets have performed since the pandemic;
  • What to expect from emerging funding opportunities; and
  • Which best practices industry peers utilized to optimize their funding models.

“Resiliency is a long-standing characteristic of the equipment finance industry, and the results of this study reinforce that reputation,” said Tom Ware, Foundation Research Committee Chair. “Readers will benefit from the experience of industry participants and insights about potential risks and opportunities to best position their organizations for the future.”

Two of the study authors, Gary LoMonaco and Patricia Voorhees of The Alta Group, will present highlights of the findings at ELFA’s National Funding Conference on April 13.

Download the full report at https://bit.ly/ELFFFunding. All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.
###

Media contact: Charlie Visconage, cvisconage@leasefoundation.org

New Foundation Report Examines the U.S. Retail Sector and Opportunities for Equipment Finance Companies

Washington, DC, March 25, 2022 – As the $4.4 trillion U.S. retail sector deploys strategies such as increasing warehousing, repurposing existing stores, and incorporating new technologies, it is creating opportunities for leasing and other financing solutions, according to a new study, Vertical Market Outlook Series: Retail, released by the Equipment Leasing & Finance Foundation (Foundation). The study focuses on the rapidly evolving retail landscape driven by consumer demand for flexibility in how, when and what they purchase. It is the sixth release of the Foundation’s forward-looking Vertical Market Outlook Series designed to help readers recognize and understand opportunities and challenges that may affect their businesses.

The report, commissioned by the Foundation and prepared by Engine Group, comprises data and research from a variety of sources, including the U.S. Bureau of Labor Statistics, the National Retail Federation, Deloitte, and McKinsey. Among the range of issues examined in the study are:

  • Macroeconomic environment (labor/employment, impact of COVID)
  • Trends in retail operations (supply chain innovation, new store formats)
  • Increasing roles for technology (digital technology, robotics, data management)
  • Impact on small and mid-size retailers (customer-facing innovations)

“COVID, technology innovations, and consumer demands are driving dramatic changes in the U.S. retail sector that pose numerous challenges and opportunities for the equipment finance industry,” said Tom Ware, Foundation Research Committee Chair. “The range of information and analysis in this study provides critical market intelligence for equipment finance professionals to use in their strategic planning and decision-making.”

Download the full report at https://bit.ly/ELFFRetailReport. All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

 JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.
###

Media contact: Kelli Nienaber, knienaber@leasefoundation.org

Equipment Finance Industry Confidence Eases Again in March

Washington, DC, March 17, 2022 – The Equipment Leasing & Finance Foundation (the Foundation) releases the March 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 58.2, easing from the February index of 61.8.

When asked about the outlook for the future, MCI-EFI survey respondent Michael Romanowski, President, Farm Credit Leasing, said, “Supply chain issues continue to hamper equipment availability. The Ukraine conflict has enhanced volatility and is contributing to an already unsettled environment. We continue to work closely with our partners and customers to ensure we are advancing our mission in these uncertain times.”

March 2022 Survey Results:
The overall MCI-EFI is 58.2, easing from the February index of 61.8.

  • When asked to assess their business conditions over the next four months, 21.4% of executives responding said they believe business conditions will improve over the next four months, a decrease from 24.1% in February. 50% believe business conditions will remain the same over the next four months, down from 69% the previous month. 28.6% believe business conditions will worsen, an increase from 6.9% in February.
  • 25% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 24.1% in February. 75% believe demand will “remain the same” during the same four-month time period, an increase from 72.4% the previous month. None believe demand will decline, down from 3.5% in February.
  • 21.4% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 17.2% in February. 78.6% of executives indicate they expect the “same” access to capital to fund business, a decrease from 82.8% last month. None expect “less” access to capital, unchanged from the previous month.
  • When asked, 46.4% of the executives report they expect to hire more employees over the next four months, up from 44.8% in February. 50% expect no change in headcount over the next four months, a decrease from 55.2% last month. 3.6% expect to hire fewer employees, up from none in February.
  • 3.6% of the leadership evaluate the current U.S. economy as “excellent,” a decrease from 10.3% the previous month. 85.7% of the leadership evaluate the current U.S. economy as “fair,” down from 86.2% in February. 10.7% evaluate it as “poor,” an increase from 3.5% last month.
  • 7.1% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 24.1% in February. 57.1% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 58.6% last month. 35.7% believe economic conditions in the U.S. will worsen over the next six months, an increase from 17.2% the previous month.
  • In March 42.9% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 44.8% the previous month. 57.1% believe there will be “no change” in business development spending, up from 51.7% in February. None believe there will be a decrease in spending, down from 3.5% last month.

March 2021 MCI-EFI Survey Comments from Industry Executive Leadership:

Bank, Middle Ticket
“While equity markets, crude, supply chain and global industry trade have all been greatly impacted by the Russian invasion of Ukraine, it is the suffering and loss of life that is most disturbing. I am proud of Key’s immediate humanitarian efforts on behalf of the Ukrainian people.” Adam Warner, President, Key Equipment Finance

Independent, Small Ticket
“Through 2021, often businesses used their federal government stimulus money to purchase capital equipment and services. The deeper we get into 2022, increasingly, these businesses will return to financing their capital equipment purchases.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC

ABOUT THE MCI

Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment, and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.

Who participates in the MCI-EFI?
The respondents are comprised of a wide cross-section of industry executives, including large-ticket, middle-market and small-ticket banks, independents, and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.

How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, asking the respondents’ opinions about the following:

  1. Current business conditions
  2. Expected product demand over the next four months
  3. Access to capital over the next four months
  4. Future employment conditions
  5. Evaluation of the current U.S. economy
  6. S. economic conditions over the next six months
  7. Business development spending expectations
  8. Open-ended question for comment

How may I access the MCI-EFI?
Survey results are posted on the Foundation website, https://www.leasefoundation.org/industry-resources/monthly-confidence-index/, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.

###

Media Contact: Kelli Nienaber, knienaber@leasefoundation.org

Equipment Finance Industry Confidence Eases in February

Washington, DC, February 17, 2022 – The Equipment Leasing & Finance Foundation (the Foundation) releases the February 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 61.8, easing from the January index of 63.9.

When asked about the outlook for the future, MCI-EFI survey respondent James D. Jenks, CEO, Global Finance and Leasing Services, LLC, said “The equipment finance industry is solid right now. With inflation we will experience increases in the cost of money. With the increase in the cost of money, we will experience a slowdown in the economy and delinquencies will increase.”

February 2022 Survey Results:
The overall MCI-EFI is 61.8, easing from the January index of 63.9.

  • When asked to assess their business conditions over the next four months, 24.1% of executives responding said they believe business conditions will improve over the next four months, a decrease from 25.9% in January. 69% believe business conditions will remain the same over the next four months, down from 70.4% the previous month. 6.9% believe business conditions will worsen, an increase from 3.7% in January.
  • 24.1% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 25.9% in January. 72.4% believe demand will “remain the same” during the same four-month time period, an increase from 70.4% the previous month. 3.5% believe demand will decline, unchanged from January.
  • 17.2% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 21.4% in January. 82.8% of executives indicate they expect the “same” access to capital to fund business, an increase from 78.6% last month. None expect “less” access to capital, unchanged from the previous month.
  • When asked, 44.8% of the executives report they expect to hire more employees over the next four months, up from 39.3% in January. 55.2% expect no change in headcount over the next four months, a decrease from 60.7% last month. None expect to hire fewer employees, unchanged from January.
  • 10.3% of the leadership evaluate the current U.S. economy as “excellent,” a decrease from 14.8% the previous month. 86.2% of the leadership evaluate the current U.S. economy as “fair,” up from 81.5% in January. 3.5% evaluate it as “poor,” unchanged from last month.
  • 24.1% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 29.6% in January. 58.6% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 63% last month. 17.2% believe economic conditions in the U.S. will worsen over the next six months, an increase from 7.4% the previous month.
  • In February 44.8% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 50% the previous month. 51.7% believe there will be “no change” in business development spending, up from 50% in January. 3.5% believe there will be a decrease in spending, up from none last month.

February 2021 MCI-EFI Survey Comments from Industry Executive Leadership:

Bank, Small Ticket
“I see volatility in the market that will provide opportunities for companies nimble enough to embrace them and quick enough to take advantage.” David Normandin, CLFP, President and CEO, Wintrust Specialty Finance

Bank, Middle Ticket
“We’re in an interesting period as we wait to see what the Fed will do. We all know rates will go up, but by how much? Customers are looking at their options, and the savvy ones are looking to lock in today’s low rates for longer term leases.” Michael Romanowski, President, Farm Credit Leasing

ABOUT THE MCI

Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment, and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.

Who participates in the MCI-EFI?
The respondents are comprised of a wide cross-section of industry executives, including large-ticket, middle-market and small-ticket banks, independents, and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.

How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, asking the respondents’ opinions about the following:

  1. Current business conditions
  2. Expected product demand over the next four months
  3. Access to capital over the next four months
  4. Future employment conditions
  5. Evaluation of the current U.S. economy
  6. S. economic conditions over the next six months
  7. Business development spending expectations
  8. Open-ended question for comment

How may I access the MCI-EFI?
Survey results are posted on the Foundation website, https://www.leasefoundation.org/industry-resources/monthly-confidence-index/, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.

###

Media Contact: Charlie Visconage, cvisconage@leasefoundation.org

New Foundation Report Examines ESG Issues and Opportunities for the Equipment Finance Industry

Washington, DC, February 10, 2022 – A confluence of global events—from the pandemic to economic downturn to social unrest and extreme weather—has put environmental, social, and governance (ESG) issues front and center for businesses in all industries, according to a new study, “The ESG Imperative: Understanding the Opportunities for the Equipment Leasing and Finance Industry,” released by the Equipment Leasing & Finance Foundation (Foundation). The study prepared by The Alta Group for the Foundation reviews key ESG elements, looks at their status in terms of strategy, and the risks and opportunities they represent for the equipment finance industry.

Among the details provided in this wide-ranging study are:

  • A review of the definition and evolution of ESG;
  • Specific ESG industry market segment opportunities;
  • Illustrations of the potential impacts on funding and underwriting;
  • Overview of relevant elements of the Infrastructure Investment and Jobs Act;
  • Key insights gleaned from industry research interviews;
  • Background on the current state of disclosure requirements; and
  • A framework for ESG value creation and execution.

“Many equipment leasing and finance companies have not yet fully developed ESG policies and procedures, which can materially impact their future success,” said Tom Ware, Foundation Research Committee Chair. “This comprehensive study provides valuable insights and actionable steps from equipment finance industry leaders who have strategic and tactical experience with ESG issues. It is an indispensable resource to assist organizations in furthering their ESG efforts or, if they have not started them, to give them guidance on where to begin.”

Download the full report at https://bit.ly/FoundationESGstudy.

All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Vimeo: https://vimeo.com/elffchannel

ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.
###

Media contact: Charlie Visconage, cvisconage@leasefoundation.org