10/28/2024 | Press release | Distributed by Public on 10/28/2024 11:08
End-users expect to increase their equipment and software acquisitions in 2025 with 77% using financing
Washington, DC, October 28, 2024-The equipment finance industry expanded to an estimated $1.34 trillion in 2023-a new all-time high-with 82% of end-users using some form of financing to fund their equipment and software (E&S) acquisitions, according to an end-user survey from the Equipment Finance Industry Horizon Report 2024. The report, which was released today by the Equipment Leasing & Finance Foundation and prepared by Keybridge, also reveals that approximately 57.7% of the $2.3 trillion (nominal) in E&S investment in 2023 was financed.
The Horizon Report focuses on the Foundation's biennial survey of equipment end-users, which was conducted this summer. Using data collected through the survey, the Foundation estimates the current size of the equipment finance industry, assesses the propensity to finance private sector equipment investment for key equipment verticals, and forecasts end-user plans to acquire and finance equipment in 2025.
Leigh Lytle, President of the Foundation, and President & CEO of the Equipment Leasing and Finance Association, said, "The trillion-dollar equipment finance industry has always been the backbone of capital investment, which is a critical component of the U.S. economy. This Horizon Report clearly shows the extent to which businesses and other organizations rely on commercial financing with the majority of public and private sector capital expenditures acquired through loans, leases, or lines of credit. Our industry financed supply chains and supported business growth that helped stave off recessionary pressures amid elevated inflation and high interest rates, enabling equipment and software investment to expand in 2023. The report also indicates the industry is well positioned to support forecasted increases in equipment and software, including innovative, high-growth areas like generative AI, equipment-as-a-service (EaaS) subscription-based models, and climate financing. This report delivers must-have insights that will help business leaders and decision makers stay ahead of the game."
Highlights from the Horizon Report include:
Zack Marsh, Chair of the Equipment Leasing & Finance Foundation and SVP, Accounting and Analysis, AP Equipment Financing, said, "The Horizon report offers a detailed look at equipment acquisition and financing decisions for specific equipment verticals and industries, the key factors influencing the decision to use financing, and how financing decisions are likely to evolve over the next year. Looking ahead, both the report end-user survey and the overall economy provide reason to be optimistic about the industry's prospects in 2025. Equipment finance industry executives can use the report information to better position their businesses for faster growth."
Equipment Finance Industry Size, 2016-2027, Billions of Dollars (Nominal)
About the study
The Industry Horizon Report can be used in combination with other Foundation reports, including the quarterly Equipment Leasing & Finance U.S. Economic Outlook, the monthly Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, and the annual Industry Future Council report, to better understand the current and near-term economic conditions and other relevant trends facing the equipment finance industry.
How to access the study
The 2024 Equipment Leasing & Finance Industry Horizon Report is available for free download at https://www.leasefoundation.org/industry-resources/horizon-report/.
All Foundation studies are available for free download from the Foundation's online library at http://store.leasefoundation.org/.
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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 student talent development programs that contribute to industry innovation, individual careers, and the advancement 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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