become the real powerhouses.
There is no question that in today’s economic climate, an
ambitious lessor not only has to look beyond its home country, but
also over the horizon.
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The main exception to this theory is the American lessor.
Relatively few venture across the oceans, partly because their own
domestic markets provide them with sufficient business.
However, it is, of course, a moot point as to whether the US or
the European market is now the biggest since, as with all
statistics, it really depends on the source and what is, or is not
included.
As Benjamin Disraeli, the 19th century British Prime Minister,
said: “Lies, damn lies and statistics,” a phrase later popularised
by Mark Twain. The moment Leaseurope, some time ago, showed in its
statistics that Europe had become the world’s largest market, ELFA
suddenly found its statistics were missing certain elements of
wider finance, and included these, too.
The last few weeks’ turmoil, however, has demonstrated that this
is all, somewhat, academic.
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By GlobalDataThe US remains a formidable and influencing power. However, the
ongoing global turmoil can be traced back to irresponsible lending
in that country. It has also emphasised the irreversible trend of a
declining influence.
The real power houses will be to the east of Europe. The large
investment sources are in China and Hong Kong, even Singapore,
certainly the Middle East and to a degree Russia. The last few
weeks have made their enormous wealth even more influential.
China has the greatest potential to grow and will inevitably
become a leading power house, but the Middle East should not be
overlooked. It is forecast that within the next five years the
Middle East and North Africa will control 10 percent of the
international leasing market.
It is now more important than ever for lessors to make sure they
are seen globally and, in particular, develop contacts in markets
of growing influence. The earlier lessors become known in these
territories, the quicker they will be seen as knowledgeable and
active players in these markets.
Equally, lessors must not neglect the more established markets.
This point is often driven home around this time of the year when
the leasing conference season takes off.
Such events are filled with lessors from the well penetrated and
advanced markets. Equally, I never cease to be surprised at the
number of people I know whom I bump into who are also many
thousands of miles from their home – wherever that may be.
The author is managing principal for the EMEA region of The
Alta Group, ‘Advisers to the Asset Finance Industry’
Alan Leesmith
