By James Callery
The US leasing industry expects investment in equipment and software to grow by 3.1% in 2014, according to a report by the Equipment Leasing & Finance Foundation (ELFF).
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The report predicted mixed fortunes across asset sectors with computer equipment and software to grow between 2% and 4% in 2014 and industrial equipment investment to remain steady after 5% year-on-year growth in the third quarter of 2013. Medical equipment and the transportation sector are set to remain steady with modest growth.
Investment in agriculture equipment is expected to remain weak and decline 4% over the year and the construction equipment sector, after falling 2.8% year-on-year in the third quarter of 2013, is predicted to fall between 5% and 10% across 2014.
The ELFF study said the US economy is expected to grow 3% next year, the fastest pace of growth since the recession, and said "more dependable economic growth" would help generate stronger investment in equipment and software. However, this economic buoyancy was dependent on US legislators resolving the budget stalemate which nearly halted the US economy October.
William Sutton, president of ELFF and president and CEO of the Equipment Leasing and Finance Association, said: "While the threat remains that policy uncertainty could negatively impact the US economy and capital investment, potential stability in the federal budgeting process and an increase in GDP growth will drive up demand for equipment finance."
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By GlobalDataELFF’s 2013 State of the Equipment Finance Industry report, presented at the ELFA conference in October, said the US equipment finance market would outstrip previous growth predictions and become a $827bn (602bn) market in 2013 and estimated that the 2014 and 2015 market size would reach $860bn and $891bn respectively.
