ELFA Reveals Top 10 Equipment Acquisition Trends for 2016

WASHINGTON, D.C. — The Equipment Leasing and Finance Association, which represents the $1-trillion equipment finance sector, recently released its Top 10 Equipment Acquisition Trends for 2016. Given U.S. businesses, nonprofits and government agencies will spend over $1.6 trillion in capital goods or fixed business investment (including software) this year, financing a majority of those assets, these trends impact a significant portion of the U.S. economy. Businesses will find opportunities for equipment investment as solid market conditions and an improving U.S. economy prevail over global headwinds and potential policy changes.

ELFA forecasts the following Top 10 Equipment Acquisition Trends for 2016:

1. U.S. investment in equipment and software will hit a new high, but moderate in growth as businesses hold back on spending.
2. End of zero interest rate policy will spur other businesses, particularly small businesses, to invest before rates go higher.
3. The growth of equipment acquired through financing will increase solidly, but more slowly.
4. Businesses will begin preparing for new lease accounting rules.
5. China’s economic woes will be a global concern.
6. Equipment investment will vary widely by industry vertical.
7. Customer demand for greater flexibility and convenience will increase the use of non-standard financing agreements.
8. Low oil prices will continue to impede energy investment.
9. Eyes will be on 2016 presidential election for potential policy shifts.
10. Looming “wild cards” could influence business investment decisions.

Additional factors could present headwinds to equipment investment in 2016. A low inventory of homes in a housing market poised for a breakout year could either cause construction investment to surge or push up home prices and deter would-be buyers. The stronger U.S. labor market could accelerate wage growth, which would cause consumer confidence and spending to rise, but may also spur inflation, which could encourage the Federal goverment to raise interest rates faster than expected. Lastly, a threat of continuing terrorist attacks could present economic and policy implications that in the short and long term could divert capital spending resources.

For a video and infographic highlighting the Top 10 Equipment Acquisition Trends for 2016, visit http://equipmentfinanceadvantage.org/rsrcs/articles/10trends.cfm.