{"id":63338,"date":"2025-01-16T12:43:25","date_gmt":"2025-01-16T20:43:25","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=63338"},"modified":"2025-01-16T12:43:27","modified_gmt":"2025-01-16T20:43:27","slug":"equipment-finance-industry-confidence-up-third-consecutive-month-in-january","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/news\/2025\/01\/equipment-finance-industry-confidence-up-third-consecutive-month-in-january\/","title":{"rendered":"Equipment Finance Industry Confidence Up Third Consecutive Month in January"},"content":{"rendered":"\n<p><em>Washington, DC (Jan. 16, 2025)<\/em> \u2013 The Equipment Leasing &amp; Finance Foundation (the Foundation) releases the January 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Overall, confidence in the equipment finance market increased for the third consecutive month to 69.6, up from the December index of 68.8, and the highest level since July 2021. 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 William C. Perry III, executive vice president and group head, Regions Equipment Finance Corporation, said, \u201cEncouraging data points clearly demonstrate the resiliency and critical role of equipment finance to the U.S. economy. As you consider further anticipated rate cut(s), capacity reshoring and the potential for 100% bonus depreciation being reinstated, we expect companies to increase investments in new technology, resources, and production equipment. This should equate to increased demand for structured leasing and equipment finance products as companies look to maximize associated tax benefits. Having performed well over the past 24 months, the equipment finance sector is justly poised for growth as we head into 2025 and beyond.\u201d<\/p>\n\n\n\n<p>January 2025 Survey Results:<\/p>\n\n\n\n<p>The overall MCI-EFI is 69.6, up from the December index of 68.8.<\/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, unchanged from December. 38.1% believe business conditions will remain the same over the next four months, up from 32.1% the previous month. 4.8% believe business conditions will worsen, down from 10.7% in December.<\/li><li>Capex demand \u2013 47.6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 53.6% in December. 47.6% believe demand will \u201cremain the same\u201d during the same four-month time period, up from 42.9% the previous month. 4.8% believe demand will decline, an increase from 3.6% in December.<\/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, 71.4% of executives indicate they expect the \u201csame\u201d access to capital to fund business, and none expect \u201cless\u201d access to capital, all unchanged from the previous month.<\/li><li>Employment &#8211; When asked, 47.6% of the executives report they expect to hire more employees over the next four months, an increase from 47.6% in December. 52.4% expect no change in headcount over the next four months, up from 42.9% last month. None expect to hire fewer employees, down from 10.7% in December.<\/li><li>U.S. economy \u2013 9.5% of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d up from 7.1% the previous month. 85.7% evaluate the economy as \u201cfair,\u201d down from 89.3% in December. 4.8% evaluate it as \u201cpoor,\u201d up from 3.6% last month.<\/li><li>Economic outlook \u2013 52.4% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, down from 53.6% in December. 47.6% indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, up from 35.7% last month. None believe economic conditions in the U.S. will worsen over the next six months, a decrease from 10.7% the previous month.<\/li><li>Business development spending \u2013 In January, 38.1% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 46.4% the previous month. 61.9% believe there will be \u201cno change\u201d in business development spending, an increase from 50% in December. None believe there will be a decrease in spending, down from 3.6% last month.<\/li><\/ul>\n\n\n\n<p>January 2025 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>\u201cI think the incoming President and administration will promote a business-friendly atmosphere. This will hopefully boost confidence leading to business expansion and growth.\u201d<br><em>\u2014 Charles Jones, Senior Vice President, 1st Equipment Finance, Inc.<\/em><\/p>\n\n\n\n<p>\u201cThe equipment leasing and finance industry experienced a solid 2024 and is footed for a better 2025. Growth is back in the forecast with investments in many core industries projected in 2025. The opportunity is great and the obstacles are many, including continued normalization of portfolio performance as well as material increase in bankruptcy filings again in 2024 vs. 2023. Swap rates continue to be volatile and there is pressure in many SME organizations to maintain profitability. Our role in helping our customers acquire the equipment they need is real, and I am confident that we are up to the challenge of delivering creative and flexible solutions to meet our customers\u2019 needs.\u201d<br><em>\u2013 David Normandin, CLFP, President and CEO, Wintrust Specialty Finance<\/em><\/p>\n\n\n\n<p><strong>Independent, Middle Ticket<\/strong><\/p>\n\n\n\n<p>\u201cSLR Equipment Finance continues to evaluate opportunities to expand business in both its vendor, direct, and capital market spaces. Expected improvements in inflation, supply chain issue resolutions, expansion in energy sectors, and general trade improvements likely to occur over the course of 2025 should positively benefit capex spending, and therefore, the need to provide financing, especially by sources such as SLR Equipment Finance, which provides private capital and flexible options to its customers.\u201d<br><em>\u2013 Shari Williams, Chief Risk Officer, SLR Equipment Finance<\/em><\/p>\n\n\n\n<p><strong>Independent, Large Ticket<\/strong><\/p>\n\n\n\n<p>\u201cEquipment financing is an integral component of the middle market capital stack at this point as clients need access to cost-effective capital, and capex remains stable to strong. That said, there remain potential risks in the economy and geopolitical environment and things can turn suddenly.\u201d<br><em>\u2013 Jonathan Albin, Chief Operating Officer, Nexseer Capital<\/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 with a mission to advance the $1.3 trillion equipment finance sector by producing data-forward research and market outlooks, as well as cultivating the next-generation workforce through Campus to Career programs, including curriculum development and collegiate scholarships. Founded in 1989 and 100% funded through charitable donations, the Foundation drives innovation and career development for the future of the industry. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Washington, DC (Jan. 16, 2025) \u2013 The Equipment Leasing &amp; Finance Foundation (the Foundation) releases the January 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Overall, confidence in the equipment finance market increased for the third consecutive month to 69.6, up from the December index of 68.8, and the highest level since July 2021. 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 William C. Perry III, executive vice president and group head, Regions Equipment Finance Corporation, said, \u201cEncouraging data points clearly demonstrate the resiliency and critical role of equipment finance to the U.S. economy. As you consider further anticipated rate cut(s), capacity reshoring and the potential for 100% bonus depreciation being reinstated, we expect companies to increase investments in new technology, resources, and production equipment. This should equate to increased demand for structured leasing and equipment finance products as companies look to maximize associated tax benefits. Having performed well over the past 24 months, the equipment finance sector is justly poised for growth as we head into 2025 and beyond.\u201d January 2025 Survey Results: The overall MCI-EFI is 69.6, up from the December index of 68.8. 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, unchanged from December. 38.1% believe business conditions will remain the same over the next four months, up from 32.1% the previous month. 4.8% believe business conditions will worsen, down from 10.7% in December. Capex demand \u2013 47.6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 53.6% in December. 47.6% believe demand will \u201cremain the same\u201d during the same four-month time period, up from 42.9% the previous month. 4.8% believe demand will decline, an increase from 3.6% in December. Access to capital \u2013 28.6% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, 71.4% of executives indicate they expect the \u201csame\u201d access to capital to fund business, and none expect \u201cless\u201d access to capital, all unchanged from the previous month. Employment &#8211; When asked, 47.6% of the executives report they expect to hire more employees over the next four months, an increase from 47.6% in December. 52.4% expect no change in headcount over the next four months, up from 42.9% last month. None expect to hire fewer employees, down from 10.7% in December. U.S. economy \u2013 9.5% of the leadership evaluate the current U.S. economy as \u201cexcellent,\u201d up from 7.1% the previous month. 85.7% evaluate the economy as \u201cfair,\u201d down from 89.3% in December. 4.8% evaluate it as \u201cpoor,\u201d up from 3.6% last month. Economic outlook \u2013 52.4% of the survey respondents believe that U.S. economic conditions will get \u201cbetter\u201d over the next six months, down from 53.6% in December. 47.6% indicate they believe the U.S. economy will \u201cstay the same\u201d over the next six months, up from 35.7% last month. None believe economic conditions in the U.S. will worsen over the next six months, a decrease from 10.7% the previous month. Business development spending \u2013 In January, 38.1% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 46.4% the previous month. 61.9% believe there will be \u201cno change\u201d in business development spending, an increase from 50% in December. None believe there will be a decrease in spending, down from 3.6% last month. January 2025 MCI-EFI Survey Comments from Industry Executive Leadership: Bank, Small Ticket \u201cI think the incoming President and administration will promote a business-friendly atmosphere. This will hopefully boost confidence leading to business expansion and growth.\u201d\u2014 Charles Jones, Senior Vice President, 1st Equipment Finance, Inc. \u201cThe equipment leasing and finance industry experienced a solid 2024 and is footed for a better 2025. Growth is back in the forecast with investments in many core industries projected in 2025. The opportunity is great and the obstacles are many, including continued normalization of portfolio performance as well as material increase in bankruptcy filings again in 2024 vs. 2023. Swap rates continue to be volatile and there is pressure in many SME organizations to maintain profitability. Our role in helping our customers acquire the equipment they need is real, and I am confident that we are up to the challenge of delivering creative and flexible solutions to meet our customers\u2019 needs.\u201d\u2013 David Normandin, CLFP, President and CEO, Wintrust Specialty Finance Independent, Middle Ticket \u201cSLR Equipment Finance continues to evaluate opportunities to expand business in both its vendor, direct, and capital market spaces. Expected improvements in inflation, supply chain issue resolutions, expansion in energy sectors, and general trade improvements likely to occur over the course of 2025 should positively benefit capex spending, and therefore, the need to provide financing, especially by sources such as SLR Equipment Finance, which provides private capital and flexible options to its customers.\u201d\u2013 Shari Williams, Chief Risk Officer, SLR Equipment Finance Independent, Large Ticket \u201cEquipment financing is an integral component of the middle market capital stack at this point as clients need access to cost-effective capital, and capex remains stable to strong. That said, there remain potential risks in the economy and geopolitical environment and things can turn suddenly.\u201d\u2013 Jonathan Albin, Chief Operating Officer, Nexseer Capital 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 with a mission to advance the $1.3 trillion equipment finance sector by producing data-forward research and market outlooks, as well as cultivating the next-generation workforce [&hellip;]<\/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\/63338"}],"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=63338"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/63338\/revisions"}],"predecessor-version":[{"id":63339,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/63338\/revisions\/63339"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=63338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=63338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=63338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}