The venerable Equipment Leasing and Finance Association reports that there has been a year-over-year increase of 33 percent in equipment financing, for a total borrowed volume of $7.3 billion. That’s crazy good, given the modest growth we’ve seen in other segments.
I want to take a moment to weave in some thoughts of my own from our Direct Capital data here, which shows that the volume of equipment leasing has risen month-over-month and year-over-year. This is in line with what we’re seeing across segments; indeed, as I noted a couple of weeks ago, nearly every segment has been on the rise this year. To quote Scott Lynch, our Director of Client Services, once more:
“We have seen an increase in demand for capital in the marketplace, despite the overall anemic economic numbers. We’re seeing companies in manufacturing, service – and construction – industries add and replace equipment this year,” said Director of Sales Scott Lynch. “Our steady volume increase is coming through strategic initiatives across all segments of our business. Our focus is on the customer experience.”
Each month thus far in 2011 has seen an increase, varying from anywhere between 5 and 10 percent. It’s not the 33 percent growth that the industry has seen overall, but given that Direct Capital’s business has stayed reasonably steady over the last couple of tumultuous years, that’s not really all that surprising.
It’s also one more reason to be optimistic, which I increasingly have been over the last couple of months. We’re not going to see explosive growth in too many industries, but seeing such a jump in equipment financing points to better days ahead.
Have you been able to get equipment financing this year, if you’ve been looking for it? Let us know!
Photo credit to dyet at http://www.sxc.hu/photo/1223458