The Equipment Leasing & Finance Foundation released the July 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 72.9, an increase from the June index of 71.3.
When asked about the outlook for the future, MCI-EFI survey respondent Bruce J. Winter, president, FSG Capital, said, “Many industries served by the equipment finance segment are back to full throttle, with only certain negatively impacted industries still working towards recovery. This has created growing demand for our products and services and all signs point to increasing activity over the next few quarters. Inflation concerns, driven by unprecedented federal stimulus spending, are front and center and the jury is out as to whether the Fed has correctly forecasted only a short-term bump in inflation.”
July 2021 Survey Results:
The overall MCI-EFI is 72.9, an increase from the June index of 71.3.
July 2021 MCI-EFI Survey Comments from Industry Executive Leadership
Bank, Small Ticket
“The volatility of business re-opening continues, and the struggle to maintain a consistent workforce and supply chain challenges are very real. As an industry, it will be valuable to lean on our heritage of being flexible and disciplined to ensure we continue to grow through this volatile environment and thrive with healthy performing portfolios as the economic environment improves” David Normandin, CLFP, President and CEO, Wintrust Specialty Finance, said.
Bank, Middle Ticket
“We are seeing good demand for equipment and structure financing to take advantage of the low-rate environment. The main headwind we are facing is supply chain challenges which has delayed delivery of new equipment and is impacting the completion of facility construction,” Michael Romanowski, President, Farm Credit Leasing, said.
“Key is seeing equipment demand increasing, and we are optimistic about the second half of 2021. Frequently, we find we are competing against cash as often as we are another bank,” Adam Warner, President, Key Equipment Finance, said.
Captive, Middle Ticket
“As the market landscape evolves, we continue to see equipment financing being used as a strategic tool to provide optionality. In the near term in the U.S., we’re fully focused on the opportunity in front of us,” Jon Biorkman, President, Healthcare Financial Services, GE Healthcare, said.
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