Washington, DC, December 16, 2021 – The Equipment Leasing & Finance Foundation (the Foundation) releases the December 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. 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 63.9, a decrease from the November index of 64.6.
When asked about the outlook for the future, MCI-EFI survey respondent Daniel J. Krajewski, President and CEO, Sertant Capital, LLC, said, “The near-term future of the equipment finance industry shows promise for continued expansion. As infrastructure bills are passed and implemented there will be a demand for many asset classes from construction through IT platforms. This, of course, will need to be supported by increased manufacturing capacity to build all the required capital goods. I do have concerns about the political atmosphere that currently exists in the U.S. that may slow down or even kill the entire infrastructure bill, and secondly, the supply chain issues that have bottlenecked the product delivery system.”
December 2021 Survey Results: The overall MCI-EFI is 63.9, a decrease from the November index of 64.6.
December 2021 MCI-EFI Survey Comments from Industry Executive Leadership:
Bank, Middle Ticket
“Demand for capital expenditures remains robust. Customers are looking to mitigate labor shortage challenges with automation. We believe this trend will continue through 2022 and into 2023. Supply chain headwinds continue to frustrate automation plans.” Michael Romanowski, President, Farm Credit Leasing
“Demand for equipment loans and leases remains strong in nearly all sectors. Large U.S. businesses are looking to fixed-rate financing as a strategy to mitigate the impact of inflation.” Alan Sikora, CLFP, CEO, First American, an RBC / City National Company
“Our clients remain resilient, powering though the pandemic, supply chain issues and inflation to meet their objectives. Key remains vigilant that the continued battle against Covid will eventually lessen the risks to our customers and our economy.” Adam Warner, President, Key Equipment Finance
Independent, Middle Ticket
“There is still significant liquidity in the markets and productivity continues to thrive. The impact of inflation and upcoming rate hikes could provide pause, but we continue to see strong demand on capital equipment expenditures. The biggest hurdle is prolonged supply chain disruptions, but it’s encouraging to see organizations transforming to address them innovatively going into 2022.” Aylin Cankardes, President, Rockwell Financial Group
ABOUT THE MCI
Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment, and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.
Who participates in the MCI-EFI?
The respondents are comprised of a wide cross-section of industry executives, including large-ticket, middle-market and small-ticket banks, independents, and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry's confidence.
How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, asking the respondents’ opinions about the following:
How may I access the MCI-EFI?
Survey results are posted on the Foundation website, www.leasefoundation.org/industry-resources/monthly-confidence-index/, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.
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ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.
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Source: Company press release.