U.S. businesses and government agencies will finance more than $742 billion in equipment acquisitions in 2013, according to the U.S. Equipment Finance Market Study 2012-2013, released by the Equipment Leasing & Finance Foundation. The study, conducted by IHS, provides a comprehensive look at the size and expected growth of the U.S. equipment finance market.
According to the study, theequipment financesector has emerged from the Great Recession with finance volumes at an all-time high, as a result of double-digit growth in equipment investment and a favorable interest rate environment. However, equipment finance volumes are expected to expand at a more moderate pace over the next 12 to 18 months as equipment investment growth remains constrained by uncertainties at home and abroad. Companies are expected to remain cautious about taking on the risks associated with large capital investments until after important tax and regulatory decisions impacting short- and long-term fiscal stability have been made.
“This study reveals the importance of resolving political and regulatory uncertainty so businesses can feel more confident about their futures and invest in capital equipment and job creation,” said William G. Sutton, CAE, president of the Equipment Leasing & Finance Foundation.