{"id":11787,"date":"2015-03-27T12:32:58","date_gmt":"2015-03-27T16:32:58","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=11787"},"modified":"2015-03-27T12:32:58","modified_gmt":"2015-03-27T16:32:58","slug":"equipment-leasing-and-finance-industry-confidence-increases-again-in-march","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/news\/2015\/03\/equipment-leasing-and-finance-industry-confidence-increases-again-in-march\/","title":{"rendered":"Equipment Leasing and Finance Industry Confidence Increases Again in March"},"content":{"rendered":"<p><em>Washington, DC, March 20, 2014<\/em><em> \u2013-<\/em> The <strong><a href=\"http:\/\/www.leasefoundation.org\/\">Equipment Leasing &amp; Finance Foundation<\/a><\/strong> (the Foundation) releases the March 2015 <strong><a href=\"http:\/\/www.leasefoundation.org\/research\/mci\/\">Monthly Confidence Index for the Equipment Finance Industry<\/a><\/strong> (MCI-EFI) today. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $903 billion equipment finance sector. Overall, confidence in the equipment finance market is 72.1, the highest level in four years, and an increase from the February index of 66.3.<\/p>\n<p>When asked about the outlook for the future, MCI-EFI survey respondent <strong>Harry Kaplun, President, Frost Equipment Leasing and Finance<\/strong>, said, \u201cEquipment financing demand is continuing although there are increasing clouds of uncertainty.\u00a0 In particular the full impact of lower oil prices has not been seen.\u00a0 This favorable event for consumers has a mixed impact commercially.\u201d<\/p>\n<p><strong><span style=\"text-decoration: underline;\">March 2015 Survey Results:<\/span><\/strong><\/p>\n<ul>\n<li>The overall MCI-EFI is 72.1, an increase from the February index of 66.3.<\/li>\n<li>When asked to assess their business conditions over the next four months, 50% of executives responding said they believe business conditions will improve over the next four months, up from 30.3% in February.\u00a0 50% of respondents believe business conditions will remain the same over the next four months, down from 63.6% in February.\u00a0 None believe business conditions will worsen, down from 6.1% who believed so the previous month.<\/li>\n<li>41.7% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 42.4% in February.\u00a0 58.3% believe demand will \u201cremain the same\u201d during the same four-month time period, up from 51.5% the previous month.\u00a0 None believe demand will decline, down from 6.1% in February.<\/li>\n<li>25% of executives expect more access to capital to fund equipment acquisitions over the next four months down from 27.3% in February.\u00a0 75% of survey respondents indicate they expect the \u201csame\u201d access to capital to fund business, up from 72.7% in February.\u00a0 None expect \u201cless\u201d access to capital, unchanged from the previous month.<\/li>\n<li>When asked, 70.8% of the executives reported they expect to hire more employees over the next four months, an increase from 39.4% in February.\u00a0 25% expect no change in headcount over the next four months, down from 57.6% last month.\u00a0 4.2% expect to hire fewer employees, up from 3% who expected fewer in February.<\/li>\n<li>12.5% of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d up from 6.1% last month.\u00a0 87.5% of the leadership evaluate the current U.S. economy as \u201cfair,\u201d down from 90.9% in February.\u00a0 None rate it as \u201cpoor,\u201d down from 3% the previous month.<\/li>\n<li>45.8% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, relatively unchanged from 45.5% who believed so in February.\u00a0 54.2% of survey respondents indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, unchanged from February.\u00a0 None believe economic conditions in the U.S. will worsen over the next six months, also unchanged from last month.<\/li>\n<li>In March, 58.3% of respondents indicate they believe their company will increase spending on business development activities during the next six months, an increase from 48.5% in February.\u00a0 41.7% believe there will be \u201cno change\u201d in business development spending, a decrease from 51.5% last month.\u00a0 None believe there will be a decrease in spending, unchanged from last month.<\/li>\n<\/ul>\n<p><strong><span style=\"text-decoration: underline;\">March 2015 MCI-EFI Survey Comments from Industry Executive Leadership<\/span><\/strong>:<\/p>\n<p><span style=\"text-decoration: underline;\">Independent, Middle Ticket<\/span><\/p>\n<p>\u201cOur truck financing business continues to exceed budgeted expectations with monthly credit applications the highest in our 14 years of offering financing in this market. Our vendor truck manufacturers continue to be optimistic as well.\u201d <strong>William Besgen, President &amp; COO, Hitachi Capital America Corp.<\/strong><\/p>\n<p><span style=\"text-decoration: underline;\">Bank, Small Ticket<\/span><\/p>\n<p>\u201cHousing in certain parts of the South is booming.\u00a0 Rentals are up as well. The overall economy appears to be improving, but overregulation remains a concern.\u201d <strong>Kenneth Collins, CEO, Susquehanna Commercial Finance, Inc<\/strong>.<\/p>\n<p><span style=\"text-decoration: underline;\">Bank, Middle Ticket<\/span><\/p>\n<p>\u201cEconomists will be playing catch-up for the balance of 2015 in order to achieve their consensus 3 percent growth in GDP.\u00a0 If we get there it will be a very good year for the equipment finance industry.\u00a0 So far, we are lagging behind.\u201d <strong>Thomas Jaschik, President, BB&amp;T Equipment Finance<\/strong><\/p>\n<p><strong>Why an MCI-EFI?<\/strong><\/p>\n<p>Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.<\/p>\n<p><strong>Who participates in the MCI-EFI? <\/strong><\/p>\n<p>The respondents are comprised of a wide cross section of industry executives, including large-ticket, middle-market and small-ticket banks, independents and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey\u2019s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry&#8217;s confidence.<\/p>\n<p>How is the MCI-EFI designed?<\/p>\n<p>The survey consists of seven questions and an area for comments, asking the respondents\u2019 opinions about the following:<\/p>\n<ol>\n<li>Current business conditions<\/li>\n<li>Expected product demand over the next four months<\/li>\n<li>Access to capital over the next four months<\/li>\n<li>Future employment conditions<\/li>\n<li>Evaluation of the current U.S. economy<\/li>\n<li>U.S. economic conditions over the next six months<\/li>\n<li>Business development spending expectations<\/li>\n<li>Open-ended question for comment<\/li>\n<\/ol>\n<p><strong>How may I access the MCI-EFI?<\/strong><\/p>\n<p>Survey results are posted on the Foundation website, <a href=\"http:\/\/www.leasefoundation.org\/research\/mci\/\">http:\/\/www.leasefoundation.org\/research\/mci\/<\/a>, included in the Foundation Forecast newsletter and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.<\/p>\n<p><strong>About the Foundation<\/strong><\/p>\n<p>The Equipment Leasing &amp; Finance Foundation is a 501c3 non-profit organization that provides vision for the equipment leasing and finance industry through future-focused information and research. Funded through charitable individual and corporate donations, the Foundation is the only organization dedicated to future-oriented, in-depth, independent research for the leasing industry.\u00a0 Visit the Foundation online at <a href=\"http:\/\/www.leasefoundation.org\/\">http:\/\/www.LeaseFoundation.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Washington, DC, March 20, 2014 \u2013- The Equipment Leasing &amp; Finance Foundation (the Foundation) releases the March 2015 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $903 billion equipment finance sector. Overall, confidence in the equipment finance market is 72.1, the highest level in four years, and an increase from the February index of 66.3. When asked about the outlook for the future, MCI-EFI survey respondent Harry Kaplun, President, Frost Equipment Leasing and Finance, said, \u201cEquipment financing demand is continuing although there are increasing clouds of uncertainty.\u00a0 In particular the full impact of lower oil prices has not been seen.\u00a0 This favorable event for consumers has a mixed impact commercially.\u201d March 2015 Survey Results: The overall MCI-EFI is 72.1, an increase from the February index of 66.3. When asked to assess their business conditions over the next four months, 50% of executives responding said they believe business conditions will improve over the next four months, up from 30.3% in February.\u00a0 50% of respondents believe business conditions will remain the same over the next four months, down from 63.6% in February.\u00a0 None believe business conditions will worsen, down from 6.1% who believed so the previous month. 41.7% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 42.4% in February.\u00a0 58.3% believe demand will \u201cremain the same\u201d during the same four-month time period, up from 51.5% the previous month.\u00a0 None believe demand will decline, down from 6.1% in February. 25% of executives expect more access to capital to fund equipment acquisitions over the next four months down from 27.3% in February.\u00a0 75% of survey respondents indicate they expect the \u201csame\u201d access to capital to fund business, up from 72.7% in February.\u00a0 None expect \u201cless\u201d access to capital, unchanged from the previous month. When asked, 70.8% of the executives reported they expect to hire more employees over the next four months, an increase from 39.4% in February.\u00a0 25% expect no change in headcount over the next four months, down from 57.6% last month.\u00a0 4.2% expect to hire fewer employees, up from 3% who expected fewer in February. 12.5% of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d up from 6.1% last month.\u00a0 87.5% of the leadership evaluate the current U.S. economy as \u201cfair,\u201d down from 90.9% in February.\u00a0 None rate it as \u201cpoor,\u201d down from 3% the previous month. 45.8% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, relatively unchanged from 45.5% who believed so in February.\u00a0 54.2% of survey respondents indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, unchanged from February.\u00a0 None believe economic conditions in the U.S. will worsen over the next six months, also unchanged from last month. In March, 58.3% of respondents indicate they believe their company will increase spending on business development activities during the next six months, an increase from 48.5% in February.\u00a0 41.7% believe there will be \u201cno change\u201d in business development spending, a decrease from 51.5% last month.\u00a0 None believe there will be a decrease in spending, unchanged from last month. March 2015 MCI-EFI Survey Comments from Industry Executive Leadership: Independent, Middle Ticket \u201cOur truck financing business continues to exceed budgeted expectations with monthly credit applications the highest in our 14 years of offering financing in this market. Our vendor truck manufacturers continue to be optimistic as well.\u201d William Besgen, President &amp; COO, Hitachi Capital America Corp. Bank, Small Ticket \u201cHousing in certain parts of the South is booming.\u00a0 Rentals are up as well. The overall economy appears to be improving, but overregulation remains a concern.\u201d Kenneth Collins, CEO, Susquehanna Commercial Finance, Inc. Bank, Middle Ticket \u201cEconomists will be playing catch-up for the balance of 2015 in order to achieve their consensus 3 percent growth in GDP.\u00a0 If we get there it will be a very good year for the equipment finance industry.\u00a0 So far, we are lagging behind.\u201d Thomas Jaschik, President, BB&amp;T Equipment Finance Why an MCI-EFI? Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising. Who participates in the MCI-EFI? The respondents are comprised of a wide cross section of industry executives, including large-ticket, middle-market and small-ticket banks, independents and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey\u2019s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry&#8217;s confidence. How is the MCI-EFI designed? The survey consists of seven questions and an area for comments, asking the respondents\u2019 opinions about the following: Current business conditions Expected product demand over the next four months Access to capital over the next four months Future employment conditions Evaluation of the current U.S. economy U.S. economic conditions over the next six months Business development spending expectations Open-ended question for comment How may I access the MCI-EFI? Survey results are posted on the Foundation website, http:\/\/www.leasefoundation.org\/research\/mci\/, included in the Foundation Forecast newsletter and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above. About the Foundation The Equipment Leasing &amp; Finance Foundation is a 501c3 non-profit organization that provides vision for the equipment leasing and finance industry through future-focused information and research. Funded through charitable individual and corporate donations, the Foundation is the only organization dedicated to future-oriented, in-depth, independent research [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[86,1638],"tags":[2161,2125],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/11787"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=11787"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/11787\/revisions"}],"predecessor-version":[{"id":11788,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/11787\/revisions\/11788"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=11787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=11787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=11787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}