According to ELFA (Equipment Leasing & Finance Association) companies in the U.S. signed up for $6.9 billion in new lines of credit, loans, and leases in January alone. This is a 10% increase over the same period last year. This is good news not only for all of the manufactures but also indicates a robust economy where consumer spending continues to drive growth across almost all channels.
Business Owners, Oil & Gas, Contractors, Food Processing and Packaging, Manufacturing, and Medical equipment have all seen an increase in demand. Companies continue to invest in the top of the line equipment with increased production capabilities and equipment that costs less to run. The innovation within the equipment industries has seen a surge as manufactures in order to gain market share have increased spending on R & D to deliver an improved product.
Even with interest rates beginning to tick up slightly the need for expanded and flexibility continues to bring capital investments to production lines, heavy equipment, construction equipment and a renewed interest in oil and gas equipment. There was, however, a spike in delinquencies which should be monitored in case there is a breakdown or deterioration of the credit markets.
If you are the owner of a business in any of these industries you should continue to pay close attention to any piece of equipment that may be nearing the end of its useful life and having a replacement on hand in case there is a breakdown. It is estimated that any break in the production line can cost upwards of $15,000/hour in lost sales and that is a small operation. A contractor on a project with a tight deadline can face lengthy disruptions and delays if a backhoe, crane or loader fails. Smart business would suggest pre-planning here may be wise.
- Oil & Gas
- Food Processing
- Office Equipment
- Power Generation
Equipment Leases is able to get you a fast approval on any purchase between $100k and $5M as well as advise on the various types of leases that may be best suited for your specific situation.