Equipment Leasing Industry Quarterly Report Shows New Business Volume Up
The Equipment Leasing Association’s (ELA) 4Q 2003 Performance Indicators Report (PIR) shows new business volume grew at 4.0 percent when compared to the 4Q 2002. Total net portfolio slightly declined by 0.4 percent.
In other news, the ELA reported Top Repossessions in 2003
The NQI 2003 year-end analysis Reports on trucks/trailers, printing presses, medical devices, machine tools, and construction equipment. These were the top five repossessed capital assets in 2003, according to Nassau’s internal records on liquidations.
2003 data when compared with 2002, indicates:
56 percent overall decrease in repossessions of trucks and trailers. Trucks and trailers were the only one of the five top equipment categories tracked that showed improvement over all four quarters. Other positive trends within the industry include the growth in commercial trucks sales over the latter part of 2003 and projected into 2004, according to the Truck Renting and Leasing Association (TRALA).
percent overall drop in repossessions of printing presses. Printing presses overcame a poor showing in Q1 2003 (up 141 percent compared with Q1 2002) to improve over the last three quarters of the year. This correlates with findings from the National Association of Printing Leadership (NAPL), which reported in November that the printing industry was “finally showing signs of what may be a sustainable upturn, following more than two years of steep and broad sales declines.”
S&P Maintains Stable Rating for Commercial Finance Industry
The continuing economic recovery in the US will give the commercial finance industry there and in the UK a helpful boost, a study from Standard & Poor’s has found.
The study, warns however that interest rates rises could limit the amount of net capital expenditure by corporates and potentially lower the demand for commercial finance over the long term. As a result of this caution, S&P is maintaining a ‘stable’ ratings outlook for the industry (rather than a ‘positive’ outlook).
Capital equipment spending is expected to peak in 2004-05 (+15 percent on the previous year’s volumes), and then fall until 2007, where it is then set to stabilize (+5 percent on the previous year’s volumes), the study revealed. ,p>In the near term, S&P expects capital investment and demand for commercial equipment to grow, particularly from US corporates, and this should have a positive impact on the asset quality, profitability and portfolio growth of commercial finance providers.