Equipment Leasing Industry to Grow in 2013
January 9, 2013
U.S. businesses and government agencies will finance more than $742 billion in equipment acquisitions in 2013, according to the U.S. Equipment Finance Market Study 2012-2013, released last month by the Equipment Leasing & Finance Foundation. The study, conducted by IHS, provides a comprehensive look at the size and expected growth of the U.S. equipment finance market.
According to the study, the equipment finance sector has emerged from the Great Recession with finance volumes at an all-time high, as a result of double-digit growth in equipment investment and a favorable interest rate environment.
Seventy-two percent of companies use some form of financing when acquiring equipment, including loans, leases and lines of credit (excluding credit cards). Companies with less than $1 million in revenues use financing in 49 percent of their equipment acquisitions, while companies with revenues between $25 million and $100 million use financing in 86 percent of their acquisitions.
Even with the relatively high degree of uncertainty over the economy and regulations/fiscal policy, nearly 30 percent of companies surveyed anticipated increasing their equipment investment over the next 12 months.