Survey: Equipment finance industry confidence highest in three years

Survey: Equipment finance industry confidence highest in three years

The Equipment Leasing & Finance Foundation has released the March 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI).

The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector, the Foundation says. Overall, confidence in the equipment finance market is 67.7, an increase from the February index of 64.4, and the highest level since April 2018.

March 2021 Survey Results include:

  • The overall MCI-EFI is 67.7, an increase from the February index of 64.4.
  • 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 46.2% in February. 46.4% believe business conditions will remain the same over the next four months, unchanged from the previous month. 3.6% believe business conditions will worsen, a decrease from 7.7% in February.
  • 42.9% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, 53.6% believe demand will “remain the same” during the same four-month time period, and 3.6% believe demand will decline, all relatively unchanged from February.
  • 28.6% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 23.1% in February. 71.4% of executives indicate they expect the “same” access to capital to fund business, a decrease from 76.9% last month. None expect “less” access to capital, unchanged from the previous month.
  • When asked, 42.9% of the executives report they expect to hire more employees over the next four months, up from 38.5% in February. 57.1% expect no change in headcount over the next four months, a decrease from 61.5% last month. None expect to hire fewer employees, unchanged from February.
  • 3.6% of the leadership evaluate the current U.S. economy as “excellent,” an increase from none the previous month; while 78.6% of the leadership evaluate it as “fair,” and 17.9% evaluate it as “poor.”
  • 60.7% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, an increase from 50% in February. 32.1% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 38.5% last month. 7.1% believe economic conditions in the U.S. will worsen over the next six months, down from 11.5% the previous month.
  • In March 39.3% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 30.8% last month. 60.7% believe there will be “no change” in business development spending, a decrease from 69.2% in February. None believe there will be a decrease in spending.

You May Also Like

Tub O’ Towels debuts heavy-duty cleaner and degreaser spray

The spray is effective on oily and greasy surfaces, including those in bays and on vehicle components, the company says.

Tub-O-Towels-heavy-duty-degreaser

Tub O’ Towels announced a new heavy-duty cleaner and degreaser spray, which the company says is aimed at taking care of grease and grime in service shops, oil change bays and engine or transmission shops.

“Customers have been asking us for years to offer our cleaning solution as a spray,” said Ashley Szeremet, director of marketing for Tub O’ Towels. “Our chemists have developed a formula that maintains the high performance of our existing cleaning wipes.”

Cummins, three other companies agree to test hydrogen engines in real-world conditions

The project aims to develop a full hydrogen eco-system together with a hydrogen producer, vehicle manufacturer and end user.

Cummins-x15h-hydrogen-engine-1400
Volvo to acquire battery business from Proterra Inc., Proterra Operating Company

Volvo Group has been selected as the winning bidder in an auction for the business and assets of the Proterra Powered business unit.

Volvo-VNR-Electric-Training-Center-1400
Phillips Industries introduces interior corner lights with motion detection for dry vans and reefers

Utility Trailer Manufacturing Co. selected these new lights as their standard interior trailer lights for their refrigerated trailers. 

Phillips-Permalite-Apex-Motion-1400
Apollo begins deliveries of long haul trailer tire

The EnduMile LHT includes a ‘free-rolling’ tread pattern, designed specifically for trailer axles.

Apollo-22.5-EnduMile-LHT-side-1400

Other Posts

FTR Shippers Conditions Index shows positive readings in September as diesel prices fall

“Moving forward, it is likely that diesel prices will determine what the change in the index will be for the next few months.”

Diesel-Trends
Equipment Leasing and Finance Association report shows business slowing year-over-year in October

Year-to-date, cumulative new business volume was up 0.7% compared to 2022. 

cash-money-generic
Trailer orders remain strong in October, ACT reports

October net orders, at 35,300 units, were 26% higher year-over-year, and 4,000 units more than were booked in September.

trailer-generic
FTR Trucking Conditions Index improves, but market remains tough for carriers

The outlook is for consistently negative readings for the TCI in 2024.

FTR-trucking-conditions-index-1400