A recent article by White Clarke Group EVP Brendan Gleeson highlights the “pent-up demand waiting to be unleashed in the U.S. leasing market.”

Gleeson writes, “The equipment and auto finance and leasing industry in the U.S. also suffered a decline in relative terms in early 2014, but, like the economy, has picked up since and is registering about 4% growth in new business volume (NBV) year-on-year over 2013 so far, according to the Equipment Leasing and Finance Association (ELFA), and this trend is expected to continue. ELFA research shows that equipment finance NBV grew a healthy 9%-plus in 2013; however, that rate is down on the previous two years.

Banks are increasing market share in equipment leasing, as they appreciate the value provided by leasing in recent years. There is a question regarding the risk of market commoditization, and where innovation can occur. However, experts interviewed for the country survey expect few such problems and are confident that the market has ample room for expansion.

The equipment finance market in the U.S. may be the world’s largest and most developed, but it is part of the largest global economy, and if the entire market of goods that could be financed is taken into consideration, there is an awful long way to go before equipment finance runs out of road.

Opportunities are currently seen in transportation, construction and technology – all three of which are indicators of a growing economy. A longer-term prospect is the renewable energy market, which has been boosted by government subsidies that may or may not survive a congressional realignment, but the whole domestic energy sector has been transformed in recent times and offers financing opportunities for cost-effective alternative energy solutions.”

To view the full White Clarke Group article and Asset and Auto Finance Survey on the U.S., click here.