Weak Economy Strengthens Equipment Leasing

Jan. 13, 2005
Compiled By Deborah Austin The $244 billion U.S. equipment leasing industry may be the silver lining in the tight economy, suggests the 2002 Survey of Industry Activity by the Equipment Leasing Association (ELA), Arlington, Va. In 2001, the industry ...
Compiled ByDeborah Austin The $244 billion U.S. equipment leasing industry may be the silver lining in the tight economy, suggests the 2002 Survey of Industry Activity by the Equipment Leasing Association (ELA), Arlington, Va. In 2001, the industry grew 1.6% in new-business volume, which reached an estimated $114.6 billion. Overall, more than 97% of average receivables were current -- a healthy level, says Ralph Petta, ELA vice president of industry services. Traditionally, equipment leasing thrives in uncertain economies because it offers more flexibility than ownership, Petta says. And when capital is tight, companies often can lease needed equipment without a down payment -- using monthly payments that let them "match productive use of the equipment with the cash flow of the business." Much of 2001's new-business volume (35%) was in the large-ticket market segment (transactions of more than $5 million). At 15% of the total, computer hardware equipment represented the highest dollar volume of new-business originations. The top three end-user industries representing new-business volume were construction, industrial/manufacturing and agriculture/forestry/fishing, the ELA reports.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!