Things are not always as bad as they seem.
Sometimes a little positivity is actually the realistic outlook and not just hopeful optimism in the face of repeatedly grim headlines.
This month in Leasing Life seems to be one of those times.
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Two markets often talked of in the hushed tones reserved for inevitable doom are the construction sector and the Spanish economy, but the reality for the leasing sector seems to be a little better than the doomsayers would have you believe.
The construction sector has undoubtedly been hit hard by the 2008 economic crisis, and indeed is still hampered by the continued situation in the eurozone, but it has not stalled completely. And, in such an equipment-reliant industry, where there is work to be done there is demand for equipment finance.
The Spanish economy, the fifth-largest in Europe, has been viewed as the barometer for crisis tipping over into catastrophe since the eurozone crisis began unfolding in 2010 – by those outside Greece and Cyprus, at any rate.
As those two countries fell deeper and deeper into crisis, politicians, businesses and commentators have all turned to Spain to see what the effect will be there.
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By GlobalDataSo far the Spanish economy has survived. Yes, it did receive a bank bail out last summer and, yes, it is under strict conditions of austerity, but it is still moving, albeit extremely sluggishly.
And wherever there is business being done, that business needs to be supported, which is why the country’s leasing market is still in demand and signing new deals.
Our feature on the Spanish leasing market finds, while conditions are far from buoyant, business has remained steady for some players and many are looking with optimism, rather than despair, to the future.
In a way, the cases of Spain and the European construction market show leasing at its strongest. Both markets have hit historical low-points but lessors are still doing business because the products and services they provide are nothing short of essential.
Essential, not just to facilitate a simple continuation of business, but for businesses to grow, develop and ultimately help revive the sectors and perhaps even the economies they operate in.
It is a little hyperbolic to suggest leasing will save the economies of Europe, but I think it’s worth remembering leasing does have a significant role to play in supporting business, which is both a strong selling point and a good reason why the industry won’t lose out, even in the toughest of times.
That seems to me to be a good enough reason to be little positive.
Grant Collinson, deputy editor
Grant.collinson@leasinglife.com
@Grant_Collinson
