Equipment Leasing Up 10% in January — According to ELFA (Equipment Leasing & Finance Association), companies in the U.S. signed up for $6.9 billion in new lines of credit, loans, and leases in January alone. This is a 10% increase over the same period last year. This is good news not only for all manufacturers but also indicates a robust economy where consumer spending continues to drive growth across almost all channels.

Business Owners, Oil & Gas, Contractors, Food Processing and Packaging, Manufacturing, and Medical equipment have all seen an increase in demand. Companies continue to invest in the top of line equipment with increased production capabilities and equipment that costs less to run. The innovation within the equipment industries has seen a surge as manufacturers, in order to gain market share, have increased spending on R&D to deliver an improved product.

The image illustrates a business graph with an upward arrow, and 2018 symbolizes growth in the new year through three-dimensional rendering.

Even with interest rates beginning to tick up slightly the need for expanded and flexibility continues to bring capital investments to production lines, heavy equipment, construction equipment, and a renewed interest in oil and gas equipment. There was, however, a spike in delinquencies which should be monitored in case there is a breakdown or deterioration of the credit markets.

If you own a business in any of these industries, you should continue to pay close attention to any piece of equipment that may be nearing the end of its useful life and have a replacement on hand in case of a breakdown. It is estimated that any break in the production line can cost upwards of $15,000/hour in lost sales, which is a small operation. A contractor on a project with a tight deadline can face lengthy disruptions and delays if a backhoe, crane, or loader fails. A smart business would suggest pre-planning here, which may be wise.

Equipment Leases can quickly approve any purchase between $1000k and $5M and advise on the various types of leases that may be best suited for your specific situation.

Picture of Steve Hansen
Steve Hansen
Mr. Hansen is the CEO of Equipment Leases and manages all of the day to day operations. He has an extensive network of lenders that are invaluable partners in providing capital to the SMB market. He also has owned a web development agency for more than 30-years. In his career he has built more than 10,000 websites and sold many of his high trafficked sites to other larger agencies.