{"id":55743,"date":"2023-06-22T12:04:29","date_gmt":"2023-06-22T19:04:29","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=55743"},"modified":"2023-06-22T14:19:14","modified_gmt":"2023-06-22T21:19:14","slug":"equipment-finance-industry-confidence-ticks-up-in-june","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/news\/2023\/06\/equipment-finance-industry-confidence-ticks-up-in-june\/","title":{"rendered":"Equipment Finance Industry Confidence Ticks Up in June"},"content":{"rendered":"\n<p><em>Washington, DC (June 22, 2023)<\/em> \u2013 The Equipment Leasing &amp; Finance Foundation (the Foundation) releases the June 2023 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market is 44.1, an increase from the May index of 40.6.<\/p>\n\n\n\n<p>When asked about the outlook for the future, MCI-EFI survey respondent Jonathan Albin, chief operating officer, Nexseer Capital, said, \u201cWe believe that as banks\u2019 senior credit facility lending tightens, there will be more opportunity for equipment lessors to supply supplemental capital. We are seeing evidence of this today.\u201d<\/p>\n\n\n\n<p>June 2023 Survey Results:<\/p>\n\n\n\n<p>The overall MCI-EFI is 44.1, an increase from the May index of 40.6.<\/p>\n\n\n\n<ul><li>When asked to assess their business conditions over the next four months, 3.3% of the executives responding said they believe business conditions will improve over the next four months, an increase from none in May. 73.3% believe business conditions will remain the same over the next four months, up from 51.9% the previous month. 23.3% believe business conditions will worsen, a decrease from 48.2% in May.<\/li><li>6.7% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 3.6% in May. 66.7% believe demand will \u201cremain the same\u201d during the same four-month time period, an increase from 53.6% the previous month. 26.7% believe demand will decline, down from 42.9% in May.<\/li><li>6.7% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 10.7% in May. 76.7% of executives indicate they expect the \u201csame\u201d access to capital to fund business, an increase from 75% last month. 16.7% expect \u201cless\u201d access to capital, up from 14.3% the previous month.<\/li><li>When asked, 13.3% of the executives report they expect to hire more employees over the next four months, a decrease from 17.9% in May. 76.7% expect no change in headcount over the next four months, an increase from 67.9% last month. 10% expect to hire fewer employees, down from 14.3% in May.<\/li><li>None of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d unchanged from the previous month. 83.3% of the leadership evaluate the current U.S. economy as \u201cfair,\u201d down from 85.7% in May. 16.7% evaluate it as \u201cpoor,\u201d an increase from 14.3% last month.<\/li><li>6.7% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, an increase from 3.6% in May. 40% indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, an increase from 32.1% last month. 53.3% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 64.3% the previous month.<\/li><li>In June 30% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 35.7% the previous month. 56.7% believe there will be \u201cno change\u201d in business development spending, up from 53.6% in May. 13.3% believe there will be a decrease in spending, up from 10.7% last month.<\/li><\/ul>\n\n\n\n<p>June 2023 MCI-EFI Survey Comments from Industry Executive Leadership:<\/p>\n\n\n\n<p><strong>Bank, Small Ticket<\/strong><\/p>\n\n\n\n<p>\u201cThe equipment leasing and finance industry is resilient and will weather the liquidity shortage that we are currently in, as well as the looming recession. There are and will continue to be opportunities that exist in this environment, and nimble organizations that are capitalized will be well positioned to grow during this period of uncertainty.\u201d<br>\u2014 David Normandin, President and CEO, Wintrust Specialty Finance<\/p>\n\n\n\n<p><strong>Bank, Middle Ticket<\/strong><\/p>\n\n\n\n<p>\u201cBusinesses need equipment to operate. While business expansion may be limited, the need to replace equipment will remain. Our credit criteria has not changed.\u201d <br>\u2014 Charles Jones, senior vice president, 1st Equipment Finance (FNCB Bank)<\/p>\n\n\n\n<p><strong>Why an MCI-EFI?<\/strong><\/p>\n\n\n\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\n\n\n<p><strong>Who participates in the MCI-EFI?<\/strong><\/p>\n\n\n\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\n\n\n<p><strong>How is the MCI-EFI designed?<\/strong><\/p>\n\n\n\n<p>The survey consists of seven questions and an area for comments, asking the respondents\u2019 opinions about the following:<\/p>\n\n\n\n<ol><li>Current business conditions <\/li><li>Expected product demand over the next four months <\/li><li>Access to capital over the next four months <\/li><li>Future employment conditions <\/li><li>Evaluation of the current U.S. economy <\/li><li>U.S. economic conditions over the next six months <\/li><li>Business development spending expectations <\/li><li>Open-ended question for comment<\/li><\/ol>\n\n\n\n<p><strong>How may I access the MCI-EFI?<\/strong><\/p>\n\n\n\n<p>Survey results are posted on the Foundation <a href=\"https:\/\/www.leasefoundation.org\/industry-resources\/monthly-confidence-index\/\">website<\/a>, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.<\/p>\n\n\n\n<p>###<\/p>\n\n\n\n<p><strong>About the Foundation<\/strong><br>The <a href=\"http:\/\/www.leasefoundation.org\">Equipment Leasing &amp; Finance Foundation<\/a> is a 501c3 non-profit organization that propels the equipment finance sector\u2014and its people\u2014forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Washington, DC (June 22, 2023) \u2013 The Equipment Leasing &amp; Finance Foundation (the Foundation) releases the June 2023 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market is 44.1, an increase from the May index of 40.6. When asked about the outlook for the future, MCI-EFI survey respondent Jonathan Albin, chief operating officer, Nexseer Capital, said, \u201cWe believe that as banks\u2019 senior credit facility lending tightens, there will be more opportunity for equipment lessors to supply supplemental capital. We are seeing evidence of this today.\u201d June 2023 Survey Results: The overall MCI-EFI is 44.1, an increase from the May index of 40.6. When asked to assess their business conditions over the next four months, 3.3% of the executives responding said they believe business conditions will improve over the next four months, an increase from none in May. 73.3% believe business conditions will remain the same over the next four months, up from 51.9% the previous month. 23.3% believe business conditions will worsen, a decrease from 48.2% in May. 6.7% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 3.6% in May. 66.7% believe demand will \u201cremain the same\u201d during the same four-month time period, an increase from 53.6% the previous month. 26.7% believe demand will decline, down from 42.9% in May. 6.7% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 10.7% in May. 76.7% of executives indicate they expect the \u201csame\u201d access to capital to fund business, an increase from 75% last month. 16.7% expect \u201cless\u201d access to capital, up from 14.3% the previous month. When asked, 13.3% of the executives report they expect to hire more employees over the next four months, a decrease from 17.9% in May. 76.7% expect no change in headcount over the next four months, an increase from 67.9% last month. 10% expect to hire fewer employees, down from 14.3% in May. None of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d unchanged from the previous month. 83.3% of the leadership evaluate the current U.S. economy as \u201cfair,\u201d down from 85.7% in May. 16.7% evaluate it as \u201cpoor,\u201d an increase from 14.3% last month. 6.7% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, an increase from 3.6% in May. 40% indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, an increase from 32.1% last month. 53.3% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 64.3% the previous month. In June 30% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 35.7% the previous month. 56.7% believe there will be \u201cno change\u201d in business development spending, up from 53.6% in May. 13.3% believe there will be a decrease in spending, up from 10.7% last month. June 2023 MCI-EFI Survey Comments from Industry Executive Leadership: Bank, Small Ticket \u201cThe equipment leasing and finance industry is resilient and will weather the liquidity shortage that we are currently in, as well as the looming recession. There are and will continue to be opportunities that exist in this environment, and nimble organizations that are capitalized will be well positioned to grow during this period of uncertainty.\u201d\u2014 David Normandin, President and CEO, Wintrust Specialty Finance Bank, Middle Ticket \u201cBusinesses need equipment to operate. While business expansion may be limited, the need to replace equipment will remain. Our credit criteria has not changed.\u201d \u2014 Charles Jones, senior vice president, 1st Equipment Finance (FNCB Bank) 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, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above. ### About the FoundationThe Equipment Leasing &amp; Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector\u2014and its people\u2014forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations.<\/p>\n","protected":false},"author":66,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[86],"tags":[2194],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/55743"}],"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\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=55743"}],"version-history":[{"count":2,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/55743\/revisions"}],"predecessor-version":[{"id":55745,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/55743\/revisions\/55745"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=55743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=55743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=55743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}