The Equipment Leasing & Finance Foundation (the Foundation) released its September 2011 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Overall, confidence in the equipment finance market is 47.6, down from the August index of 50.0, indicating continuing concern with global economic conditions and their impact on the industry.
When asked about the outlook for the future, survey respondent David T. Schaefer, president, Orion First Financial, said, “Near term prospects for organic origination growth will be less than desired. To significantly increase volume, companies will need to focus on increased market share and/or develop new products and channels. We need to make our own opportunities and not wait for the economy to get back to ‘normal.'”
Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $521 billion equipment finance sector.
Additional September 2011 survey results:
September 2011 MCI Survey comments from industry executive leadership:
Depending on the market segment they represent, executives have differing points of view on the current and future outlook for the industry.
Bank, Large Ticket: “This industry is not the issue; the uncertainty and inconsistency in the global economy are the concerns.” Executive, Large Ticket, Bank
Independent, Middle Ticket: “We are starting to see more demand for equipment leases across various sectors. The transaction sizes are increasing with a strong push to get capital equipment in by year end. Rates are becoming very competitive for the high-end customers, but still a void exists for getting middle market credits funded.” Aylin Cankardes, president, Rockwell Financial Group
Bank, Small Ticket: “Optimistic for the long term and very cautious in the short term. The conditions in Europe will continue to deteriorate causing a ‘short term’ negative effect in the U.S. markets, which includes the leasing and finance industry.” Kenneth Collins, chairman and CEO, Susquehanna Commercial Finance
Independent, Small Ticket: “The industry overall is faring well through these challenging times. In the small ticket sector we still see a lack of momentum and sluggish demand. The summer’s stock market fluctuations, debt ceiling issues, and the recent hurricane will most likely keep demand on the low side for the foreseeable future. Confidence among many small business owners continues to erode.” Valerie Hayes Jester, president, Brandywine Capital Associates
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