Investment in additional equipment and software for business is expected to rise, although the projected 2.9% is still considered sluggish
Cleveland OH (PRWEB) December 23, 2012
LeaseQ, one of the leading providers of equipment leasing and financing options in the United States, is anticipating a rise in equipment leasing on the order of 2.9% in 2013, according to data recently released by the Equipment Leasing & Financing Foundation. The projected increase is focused on the $725 billion equipment leasing and financing industry, forecasts equipment investment and capital spending in the US, and evaluates the effect of related and external factors currently in play.
Investment in additional equipment and software for business is expected to rise, although the projected 2.9% is still considered sluggish. It is also hampered by weak demand and fiscal uncertainty. Much of the outlook for 2013 investment seems to be hinging on the results of the “fiscal cliff” talks in Washington DC, which could either continue sending negative shock waves through the industry and the economy, or provide some measure of positive encouragement for businesses to invest, grow and expand. As for 2013, most of the projected growth is expected to take place in the latter half of the year.
William G. Sutton, CAE, President of the Foundation and President and CEO of the Equipment Leasing and Finance Association, said, “The 2013 Equipment Leasing & Finance U.S. Economic Outlook projects positive but muted growth in equipment investment through the beginning of 2013, as policy uncertainty continues to weigh on business confidence. However, if policymakers find a solution to key fiscal issues, we expect businesses will feel more confident in the second half of the year, leading to increased equipment investment.”
The study does make note of certain industry related trends, namely that agricultural equipment investment is expected to contract in Q4 2012 and Q1 2013. Computer and software equipment investment is likely to remain stagnant for the next 3 – 6 months. Construction equipment leasing and investment looks the strongest, at about 15%, as the housing market continues to see forward momentum.
In addition, industrial equipment investment is expected to grow, but at a much slower rate than recent quarters, although the results of the fiscal cliff debate could mean a much stronger showing in the latter half of 2013. Medical equipment growth will remain around 2% in the next 6 months, and transportation equipment investing will continue to average around 10% during the first half of 2013.
LeaseQ is one of the leading providers of commercial and business equipment leasing in the United States. Offering a variety of leasing options, they service everything from small business startups to Fortune 500 conglomerates with fast and efficient application and approval, as well as a variety of lending programs from which to choose.