CHARLOTTE — The equipment finance industry is seeing a period of growth despite hawkish monetary policy and lingering supply chain constraints, with vendors and lenders looking to capitalize on the opportunity to streamline their finance and insurance operations.
In fact, new orders for capital goods excluding aircraft and defense were up rose 0.8% month over month in January, and shipments increased 1.1% MoM, according to the data released today from the Census Bureau. On a non-seasonally adjusted basis, new orders increased 5.3% year to date in January, and shipments rose 7.7% year to date. New business volume at equipment finance shops continued that trend, rising 6% year over year, according to the Equipment Leasing and Finance Association.
What will 2023 will bring, and what can lenders and vendors do to generate better economic performance in equipment finance this year and beyond? These will be central questions addressed at Equipment Finance Connect.
Here are three key themes the conference sessions will take on:
1. Digitization is coming
Lenders and vendors are looking to digitize the sales and financing process along each step of the customer journey. From selling inventory online to cloud-native lending products to software-as-a-service and much in between, investment in technology will remain a necessary through-line in virtually every session of the conference.
2. Managing new data
As the industry builds on its digital tools, lenders and vendors will have access to more data than ever. But, with changes to the way small business lenders and vendors manage data coming in March, companies will need to ensure they remain complaint with regulatory requirements while harnessing new insights on their customers, portfolios and sales channels.
3. Capitalizing on pent-up demand
Supply chain constraints spurred by the COVID-19 pandemic have limited inventory at dealerships, with many OEMs, including at Terex and Kubota, which expect their backlogs to extend into 2024. Yet, demand for equipment and work trucks has yet to slow, highlighting the need to streamline sales and financing channels to reduce friction and increase margins. How to find that balance will be a key theme at the conference.
Follow all the latest news from this week’s Equipment Finance Connect here.
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