German equipment leasing grew 12% in 2011 and
increased market penetration thanks to a surge in production
machinery leasing.
The annual report of the German leasing
industry’s trade body, the Bundesverband Deutscher
Leasing-Unternehmen (BDL), recorded €46bn of new equipment leasing
business this year, up from €41.1bn in 2010.
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Figures in the report rely on estimates for
November and December.
Martin Mudersbach, president of the BDL, said
during the body’s annual press conference on 23 November: “The
leasing sector has transacted considerable amounts of new business
and has achieved above-average profits as a result of a rapid
increase in investment activity coupled with particularly strong
demand for mechanical-engineering products, electrical goods and
vehicles.”
The BDL estimated the leasing penetration rate
will have risen to 21.4% by the close of 2011 and said new business
generated through the leasing of equipment is growing at a stronger
rate than overall investment in equipment.
The penetration rate for 2010 was 20.7% and
had remained at 22.3% from 2007-09.
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By GlobalDataMudersbach attributed the growth in market
share this year to an increase in leasing in the SME sector which
he expects to continue into 2012.
“In 2011, as in earlier years, leasing has
been the SME sector’s trump card when it comes to financing
investments,” he said.
The production machinery sector recorded the
strongest growth, up 21%, which the BDL attributed to current
strong demand and a delay in recognition of orders placed during
the upturn in the economy following the financial crisis of
2008-2009.
Mudersbach said this was due to the long lead
times in the machine building sector and added the build-up in new,
but unrecorded, business could continue into the second quarter of
2012.
Vehilce leasing, the largest sector in the
German leasing market, increased 13%.
Mudersbach said the slower growth in this area
was due to a downturn in leasing to private motorists. He said:
“The disinclination of private motorists to invest in new vehicles
is a continuing consequence of the German government’s car
scrappage scheme.”
The office equipment and IT sector also
recorded growth following a slight contraction in 2010 while the
aircraft, marine and rail vehicles segment, along with real estate,
declined.
Mudersbach said he expected growth to continue
into 2012. “Although the rate of growth in recent weeks has eased
as a result of macroeconomic developments in the final quarter, the
sector remains optimistic,” he said.
“At worst, we are expecting a temporary
cooling off in economic activity. The Ifo Institute for Economic
Research’s Investment Indicator is pointing to strong growth in
2012, so we’re expecting to find ourselves in positive territory
again in the coming year.”
A full report and analysis of the Bundesverband Deutscher
Leasing-Unternehmen data will appear in the January issue of
Leasing Life.
grant.collinson@vrlfinancialnews.com
