Results from the annual What’s Hot/What’s Not: Equipment Market Forecast 2019 reveal construction equipment is at the top in portfolio preferences, while printing remains in last place. Trucks/trailers and machine tools finished second and third, respectively, while medical and hi tech/ computer remained in the top five for the second year in a row,” according to an in-depth look at equipment assets. The report by the Equipment Leasing and Finance Association and Carl C. Chrappa, leader of Alta’s Asset Management Practice, is a free download here.
ELFA surveyed equipment managers and consultants throughout the U.S. in December 2018 and January 2019 to assess their perceptions of equipment types and other market and economic conditions. The trade association reported, “a total of 121 responses were received,
of which 86 percent were lessors, asset-based lenders or financial advisors; and 12 percent were service providers. “
Chrappa then analyzes the survey data and based on his own research and industry knowledge compiles the content for this report.
“It is interesting to note the order of this year’s top seven equipment types is almost identical to last year’s order,” said Chrappa, a senior managing director in the global consultancy. “So, for the time being, it appears that lessors and finance companies have agreed on ‘what’s hot’. Yet, in spite of that, assumed residual values were lowered for eleven of the fifteen equipment types, showing that they are not ‘all in’ at this time.”
Based on the comments compiled by the ELFA, the economy, oversupply of new and used equipment, and the health of global trade are major concerns, the 18-page report notes in an executive summary.
One of the most important survey questions asked about the total dollar amount (volume) of business per specific equipment type expected to be booked by the respondent’s firm in 2019 compared to 2018.
This is the 29thedition of this valuable industry report.
Below you can see the results in one of the report’s charts based on respondents selecting “increase,” “about the same,” or “decrease,” with the final score, referred to as a Net Rising Index (NRI). This represents the net difference between the percentage of respondents increasing and decreasing for each type. across the 15 equipment types the survey included.