The Equipment Leasing and Finance Association (ELFA) recently released data from its latest Monthly Leasing and Finance Index, and according to the report, the sector is looking up. The MLFI, which gauges economic growth and declines in the sector by gathering economic data from 25 leading companies in the industry, showed February was a month of strong economic activity, leaving the sector poised for future growth.
One of the most promising data points found in the report addressed an increase in overall business volume – in February of this year, new business volume increased to $5.4 billion, up 15 percent from the same time last year. While month over month volume fell 10 percent from January, year over year data showed an overall growth rate of 8 percent. Additionally, according to ELFA, equipment leasing companies have grown in number over the past 12 months – up 4.3 percent from numbers in 2013.
“This month’s increase in financing activity reflects a strengthening economy evidenced by a resilient housing market trying to return to pre-recession levels, moderate GDP growth and an improving jobs picture,” ELFA President and CEO William Sutton said in a statement.
Additional findings point to overall industry success
The report also found other contributing factors pointing to current and projected success in the field. The separate Equipment Leasing & Finance Foundation’s Monthly Confidence Index ticked upward to 65.1 in March, marking an increase from February’s 63.3, making it the highest rating in approximately two years.
In less promising news, credit approvals fell to 75.3 percent in February, a drop from 76.9 percent in January. However, 53 percent of respondents said they saw more transactions succeeding in February, a relatively high number that dropped one point from the month prior.
While total index results show the potential for future growth, Sutton was cautious in his analysis of the sector’s long term growth
“It is too early to tell whether the positive economic momentum created in the first two months of the year will be sustainable for the balance of 2014, particularly as Fed policy begins to push up long term interest rates and geopolitical headwinds emerge anew in Eastern Europe,” Sutton continued.
He went on to say, though, that these positive signs may continue to improve as, “Credit markets continue to perform well.”
Those in the equipment leasing and financing industry are not the only ones who may benefit from these strong financial findings. Small and medium sized business owners may want to explore their equipment leasing options as they analyze economic activity in the U.S. and consider expanding their operations.
Whether contemplating increasing hiring or branching out into new business territory, high performing, high tech business equipment can make a significant impact on organizational success. Those considering revamping or making adjustments to their business plans should consider contacting National Funding for assistance. National Funding can provide everything from heavy equipment to the most up to date technology, allowing business owners to stay ahead of the competition.