{"id":63054,"date":"2024-12-26T07:35:25","date_gmt":"2024-12-26T15:35:25","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=63054"},"modified":"2024-12-26T07:35:27","modified_gmt":"2024-12-26T15:35:27","slug":"equipment-finance-industry-confidence-in-december-reaches-new-three-year-high","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/news\/2024\/12\/equipment-finance-industry-confidence-in-december-reaches-new-three-year-high\/","title":{"rendered":"Equipment Finance Industry Confidence in December Reaches New Three-Year High"},"content":{"rendered":"\n<p><em>Washington, DC (Dec. 20, 2024)<\/em> \u2014 The Equipment Leasing &amp; Finance Foundation (the Foundation) releases the December 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Overall, confidence in the equipment finance market is 68.8, surpassing the November index of 67.5, the previous three-year high. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1.3 trillion equipment finance sector.<\/p>\n\n\n\n<p>When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, president and CEO, Wintrust Specialty Finance, said, \u201cOver the last year, the equipment finance industry has witnessed changes in liquidity, volatile swap rates, higher delinquency, and credit charges returning to a more normalized state. Through this, we have adapted and created better solutions to meet our customers\u2019 needs. Now that the election is over and the Fed has begun cutting rates, I think there is more surety for businesses to confidently invest in their business. This will create good opportunities for the equipment finance industry in 2025.\u201d<\/p>\n\n\n\n<p>December 2024 Survey Results:<\/p>\n\n\n\n<p>The overall MCI-EFI is 68.8, up from the November index of 67.5.<\/p>\n\n\n\n<ul><li>Business conditions &#8211; When asked to assess their business conditions over the next four months, 57.1% of the executives responding said they believe business conditions will improve over the next four months, an increase from 43.3% in November. 32.1% believe business conditions will remain the same over the next four months, down from 50% the previous month. 10.7% believe business conditions will worsen, up from 6.7% in November.<\/li><li>Capex demand \u2013 53.6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 48.3% in November. 42.9% believe demand will \u201cremain the same\u201d during the same four-month time period, down from 44.8% the previous month. 3.6% believe demand will decline, a decrease from 6.9% in November.<\/li><li>Access to capital \u2013 28.6% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 37.9% in November. 71.4% of executives indicate they expect the \u201csame\u201d access to capital to fund business, up from 62.1% last month. None expect \u201cless\u201d access to capital, unchanged from the previous month.<\/li><li>Employment &#8211; When asked, 46.4% of the executives report they expect to hire more employees over the next four months, an increase from 44.8% in November. 42.9% expect no change in headcount over the next four months, down from 48.3% last month. 10.7% expect to hire fewer employees, up from 6.9% in November.<\/li><li>U.S. economy \u2013 7.1% of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d up from none the previous month. 89.3% evaluate the economy as \u201cfair,\u201d down from 96.7% in November. 3.6% evaluate it as \u201cpoor,\u201d relatively unchanged from 3.3% last month.<\/li><li>Economic outlook \u2013 53.6% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, down from 60% in November. 35.7% indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, down from 36.7% last month. 10.7% believe economic conditions in the U.S. will worsen over the next six months, an increase from 3.3% the previous month.<\/li><li>Business development spending \u2013 In December, 46.4% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 36.7% the previous month. 50% believe there will be \u201cno change\u201d in business development spending, a decrease from 56.7% in November. 3.6% believe there will be a decrease in spending, down from 6.7% last month.<\/li><\/ul>\n\n\n\n<p>December 2024 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>\u201cPolitical changes at the federal level are encouraging to small business. Changes to green energy policy and federal oversight [Section 1071] could lead to a more robust environment.\u201d<br><em>\u2014 Charles Jones, Senior Vice President, 1st Equipment Finance, Inc.<\/em><\/p>\n\n\n\n<p><strong>Captive, Small Ticket<\/strong><\/p>\n\n\n\n<p>\u201cEconomic resilience and growth, the continued adoption of technology and digitization, and government infrastructure initiatives are increasing demand. The new administration may slow the shift toward sustainability and the equipment requirements needed.\u201d<br><em>\u2014 Jim DeFrank, EVP and COO, Isuzu Finance of America Inc.<\/em><\/p>\n\n\n\n<p><strong>Independent, Small Ticket<\/strong><\/p>\n\n\n\n<p>\u201cThe president-elect is expected to make a number of changes that will positively impact the U.S. economy.\u201d<br><em>\u2014 James D. Jenks, CEO, Global Finance and Leasing Services, LLC<\/em><\/p>\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>. Details about the MCI, including who participates, how it\u2019s designed, and the survey respondent demographics 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 student talent development programs that contribute to industry innovation, individual careers, and the advancement of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Washington, DC (Dec. 20, 2024) \u2014 The Equipment Leasing &amp; Finance Foundation (the Foundation) releases the December 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Overall, confidence in the equipment finance market is 68.8, surpassing the November index of 67.5, the previous three-year high. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1.3 trillion equipment finance sector. When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, president and CEO, Wintrust Specialty Finance, said, \u201cOver the last year, the equipment finance industry has witnessed changes in liquidity, volatile swap rates, higher delinquency, and credit charges returning to a more normalized state. Through this, we have adapted and created better solutions to meet our customers\u2019 needs. Now that the election is over and the Fed has begun cutting rates, I think there is more surety for businesses to confidently invest in their business. This will create good opportunities for the equipment finance industry in 2025.\u201d December 2024 Survey Results: The overall MCI-EFI is 68.8, up from the November index of 67.5. Business conditions &#8211; When asked to assess their business conditions over the next four months, 57.1% of the executives responding said they believe business conditions will improve over the next four months, an increase from 43.3% in November. 32.1% believe business conditions will remain the same over the next four months, down from 50% the previous month. 10.7% believe business conditions will worsen, up from 6.7% in November. Capex demand \u2013 53.6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 48.3% in November. 42.9% believe demand will \u201cremain the same\u201d during the same four-month time period, down from 44.8% the previous month. 3.6% believe demand will decline, a decrease from 6.9% in November. Access to capital \u2013 28.6% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 37.9% in November. 71.4% of executives indicate they expect the \u201csame\u201d access to capital to fund business, up from 62.1% last month. None expect \u201cless\u201d access to capital, unchanged from the previous month. Employment &#8211; When asked, 46.4% of the executives report they expect to hire more employees over the next four months, an increase from 44.8% in November. 42.9% expect no change in headcount over the next four months, down from 48.3% last month. 10.7% expect to hire fewer employees, up from 6.9% in November. U.S. economy \u2013 7.1% of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d up from none the previous month. 89.3% evaluate the economy as \u201cfair,\u201d down from 96.7% in November. 3.6% evaluate it as \u201cpoor,\u201d relatively unchanged from 3.3% last month. Economic outlook \u2013 53.6% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, down from 60% in November. 35.7% indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, down from 36.7% last month. 10.7% believe economic conditions in the U.S. will worsen over the next six months, an increase from 3.3% the previous month. Business development spending \u2013 In December, 46.4% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 36.7% the previous month. 50% believe there will be \u201cno change\u201d in business development spending, a decrease from 56.7% in November. 3.6% believe there will be a decrease in spending, down from 6.7% last month. December 2024 MCI-EFI Survey Comments from Industry Executive Leadership: Bank, Small Ticket \u201cPolitical changes at the federal level are encouraging to small business. Changes to green energy policy and federal oversight [Section 1071] could lead to a more robust environment.\u201d\u2014 Charles Jones, Senior Vice President, 1st Equipment Finance, Inc. Captive, Small Ticket \u201cEconomic resilience and growth, the continued adoption of technology and digitization, and government infrastructure initiatives are increasing demand. The new administration may slow the shift toward sustainability and the equipment requirements needed.\u201d\u2014 Jim DeFrank, EVP and COO, Isuzu Finance of America Inc. Independent, Small Ticket \u201cThe president-elect is expected to make a number of changes that will positively impact the U.S. economy.\u201d\u2014 James D. Jenks, CEO, Global Finance and Leasing Services, LLC How may I access the MCI-EFI? Survey results are posted on the Foundation website. Details about the MCI, including who participates, how it\u2019s designed, and the survey respondent demographics 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 student talent development programs that contribute to industry innovation, individual careers, and the advancement of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at .<\/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\/63054"}],"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=63054"}],"version-history":[{"count":2,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/63054\/revisions"}],"predecessor-version":[{"id":63056,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/63054\/revisions\/63056"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=63054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=63054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=63054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}