The Equipment Leasing and Finance Association (ELFA) reported a notable increase in demand for equipment financing, with new business volume growing by $10.0 billion, or 2.2%, from August to September 2024. This growth was primarily driven by a significant 10.9% increase in business volume at banks, while captives and independent lenders experienced declines of 2.3% and 9.8%, respectively [77a0c206]. Employment within the sector also saw a modest rise of just over 1.0%, indicating a slight expansion in the workforce supporting equipment financing activities.
Despite the backdrop of high interest rates, ELFA President Leigh Lytle emphasized that equipment demand remained resilient, showcasing the sector's ability to adapt to challenging economic conditions. The Monthly Confidence Index for October held steady at 61.8, reflecting a stable outlook among industry executives [77a0c206]. Meanwhile, credit approvals saw a slight decrease to 75.6%, suggesting a cautious approach among lenders in the current financial environment.
In the context of Ashtead Group's recent performance, which reported a 2% revenue growth and a decline in operating profit, these trends in equipment financing may play a crucial role in shaping future business strategies. Ashtead's CEO, Brendan Horgan, highlighted the company's positioning to navigate market challenges, while the broader equipment rental industry faces pressures from declining construction and manufacturing sectors [63891787].
The CapEx Finance Index, released monthly, serves as a key indicator of commercial equipment financing in the U.S., providing insights into the overall health of the economy and the equipment leasing sector. As the industry adapts to fluctuating economic conditions, the demand for equipment financing remains a critical component for growth and sustainability [77a0c206].