The Equipment Leasing & Finance Association (ELFA) recently released its findings from an internal report gauging growth in the equipment leasing sector, and according to ELFA, the industry is poised for growth. Here are three reasons why:
1. Demand for technology is growing
Over the next three to six months, leaders in the $827 billion industry expect to see spikes in demand for equipment leasing options, particularly when it comes to technology. According to the report, equipment and software investment is expected to grow by 4.2 percent this year, up from the 3.1 percent figure presented in an earlier study.
2. The economy is rebounding
Researchers expect the U.S. economy to grow by 2.8 percent in 2014, which would mark the fastest pace seen since the recession. This growth has affected the equipment leasing industry – investment in equipment and software grew at an annualized rate of 8.9 percent in fourth quarter 2013, and industry leaders are hoping this trend will continue.
3. Winter slumps are fading
The winter’s freezing temperatures and record snowfalls are finally fading, and as spring arrives, so do increased consumer spending and business investments. Furthermore, William G. Sutton, ELFA president and CEO, remarked on the improving political climate, which may lend itself to increased demand for heavy equipment, machinery and technology.
“The Foundation’s Outlook report reflects a strengthening economy and positive trends in equipment investment,” said William G. Sutton, president and CEO of ELFA. “We know the cold winter has had some negative impact on the economy; however, with reduced policy uncertainty, stronger economic fundamentals and replacement demand, we remain optimistic about growth.”
Those interested in exploring their equipment leasing options should contact National Funding, an alternative lender that works with small businesses to get them the business equipment they need.