ELFA

While optimistic for a ‘V’ shaped economic cycle if the health crisis is first solved, some fear a prolonged shutdown will create business failures, more unemployment and unprecedented losses in the equipment finance industry and beyond.

Trade, innovation, elections and wild cards promise an eventful year for equipment investments.

Equipment and software investment likely to post weakest year of growth since 2016 following the first annualized contraction in more than three years in Q3.

Although a recession in the next six months appears unlikely, business conditions for the equipment finance industry are also unlikely to improve materially over the rest of the year, particularly for equipment verticals that serve the manufacturing sector.

Business conditions for the equipment finance industry softened in the first half of the year, and investment growth in several key verticals is expected to slow or contract in the second half of 2019.

ELFA forecasts generally positive economy and solid capital investment with building headwinds and moderated growth by year end.

ELFA president noted demand, abundant funding in the credit markets and quality portfolios as contributors to a healthy equipment finance sector in 2018.

Reported by key executives from the $1 trillion equipment finance sector, confidence in the equipment finance market eased to 53.4 from the December index of 55.5.

Tariff frictions with trading partners in North America, the EU and China remain a wild card.

Businesses are expected to make their largest capital investments since 2012.

Economic improvement, renewed business confidence and business-friendly policy changes support positive investment momentum.

Since November, 14% more executives -- nearly half of those surveyed -- expect economic conditions to improve in the next four months.

Overall propensity to finance increased asuse of leases and secured loans grew and share of cash purchases declined.

Looming deadlines require the wider organization to understand challenges and risks of the new standard, and how functions within the organization must adapt.

2015 new business volume in materials handling segment hold level with 2014.