The Equipment Leasing & Finance Foundation released the January 2019 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Overall, confidence in the equipment finance market eased further in January to 53.4, a decrease from the December index of 55.5.
When asked about the outlook for the future, MCI-EFI survey respondent Thomas Jaschik, president, BB&T Equipment Finance, said, “I believe economic conditions in 2019 will be less favorable than 2018. As such, I expect the equipment finance industry to continue its growth, although at a lesser pace than the prior two years. Excess market liquidity will continue to adversely impact margins and will have a long-term impact on industry profitability. Creativity and efficiency will be key to future success.”
January 2019 Survey Results:
The overall MCI-EFI is 53.4, a decrease from 55.5 in December.
January 2019 MCI-EFI Survey Comments from Industry Executive Leadership:
“The industry has sufficient liquidity at relatively low cost. While there continues to be slack and uncertainty in business investment, fundamentals in the economy are still positive.” Paul Menzel, CLFP, President and CEO, Financial Pacific Leasing, an Umpqua Bank Company
“Businesses seem more cautious to continue expansion until the environment in Washington and the stock market becomes more stable. The government shutdown continues to emphasize the incredible polarization that exists in our government. This type of environment makes it difficult to consider investment in equipment.” Valerie Hayes Jester, president, Brandywine Capital Associates
“Fundamentally business and the economy remain strong. Areas of concern in the future like foreign trade, interest rates, and government spending cast a cloud that brings caution to expansion plans.” Harry Kaplun, President, Specialty Finance, Frost Bank
On the deal flow side, how would you characterize the level of activity that you are seeing versus what it was a year ago? If activity is higher, is it the result of more deal flow from existing sources or... read more
Business continues to hold steady or even improve in equipment finance, as the Top 25 Private Independents reported $7,504.5 million in new business volume for 2018, topping a record-setting 2017 with a growth of 17.2% year-over-year. Four companies achieved volume... read more