Projecting Equipment Investment

 

According to Equipment Leasing and Finance Association (ELFA), U.S. businesses, nonprofits and government agencies will spend more than $1.6 trillion in capital goods or fixed business investment (including software) this year, financing a majority of those assets, these trends impact a significant portion of the U.S. economy. 

ELFA President and CEO Ralph Petta says, “Equipment acquisition is critical in driving the supply chains across all U.S. manufacturing and service sectors. Equipment leasing and financing provide the source of funding for a majority of U.S. businesses to acquire the productive assets they need to operate and grow. To assist businesses in planning their acquisition strategies, we have distilled recent research data, including the Equipment Leasing & Finance Foundation’s 2016 Equipment Leasing & Finance U.S. Economic Outlook Report, industry participants’ expertise and member input from ELFA meetings and conferences to provide our best insight for the Top 10 Equipment Acquisition Trends for 2016.”

1.  U.S. investment in equipment and software will hit a new high, but moderate in growth as businesses hold back on spending. 

2.  End of zero interest rate policy will spur other businesses, particularly small businesses, to invest before rates go higher. 

3.  The growth of equipment acquired through financing will increase solidly, but more slowly. 

4.  Businesses will begin preparing for new lease accounting rules. 

5.  China’s economic woes will be a global concern. 

6.  Equipment investment will vary widely by industry vertical. 

7.  Customer demand for greater flexibility and convenience will increase the use of non-standard financing agreements. 

8.  Low oil prices will continue to impede energy investment. 

9.  Eyes will be on 2016 presidential election for potential policy shifts. 

10.  Looming “wild cards” could influence business investment decisions. 

For more details on each click here.