US equipment investment on the rise

News Story
- 15 Apr 2021 ( #1021 ) - Washington, DC, United States
2 min read
Optimistic report
Optimistic report
With US vaccination rates rising quickly and the end of the pandemic in sight, equipment and software investment growth is expected to be robust this year as businesses invest to adapt to a post-pandemic normal.

The Q2 update to the 2021 Equipment Leasing & Finance U.S. Economic Outlook, released today by the Equipment Leasing & Finance Foundation, tips annual equipment and software investment growth of 11.2% for 2021. The report also predicts annual US GDP growth for 2021 of 5.7%.

Scott Thacker, Foundation chair and chief executive officer of Ivory Consulting Corporation, says: "Finally, we are beginning to see the light at the end of the tunnel. The widespread availability of vaccinations offers hope that economic activity will soon return to pre-pandemic levels, or beyond. The robust stimulus efforts, along with trillions of dollars in pent-up demand, point to a wave of spending this summer and fall.

"All indicators point to 2021 being a banner year for equipment and software investment, and the equipment finance industry is poised to benefit from that expected economic activity."

Highlights from the Q2 update to the 2021 Outlook include a 21% surge in equipment and software investment in Q4 2020, paving the way for growth of 11.2% in 2021.

The report finds that the US manufacturing sector continued to improve in early 2021 due to strong demand for both consumer and business goods. Underlying demand remains strong, although supply chain backlogs should be monitored and rising input prices could become an increasingly significant concern in the months ahead.

It warns that headwinds to keep an eye on include the potential for higher inflation, the ongoing labour market recovery and the emergence of new virus strains that could reduce the effectiveness of existing vaccines.

The report tracks 12 equipment and software investment verticals, and notes that nine of them are showing signs of accelerating investment after the pandemic-fuelled collapse, and three other verticals are showing signs of peaking, although investment growth should remain healthy in the near term.

Over the next three to six months, materials handling equipment investment growth should remain in positive territory, while agriculture machinery investment growth should remain robust and construction machinery investment growth could return to positive territory.
Dachser invests despite revenue falls
Dachser invests despite revenue falls 28 Mar 2024 - Kempten, Germany - 2 min read
Alta delivers record results
Alta delivers record results 28 Mar 2024 - Livonia, MI, United States - 1 min read
Asian boost for J&T Global Express
Asian boost for J&T Global Express 28 Mar 2024 - Hong Kong - 1 min read
Previously about:
Equipment finance confidence eases  News Story - 24 Mar 2022 - Washington, DC, United States - 1 min read
Equipment finance sentiment rises News Story - 24 Sep 2020 - Washington, DC, United States - 1 min read
Equipment investment slumps in US News Story - 16 Apr 2020 - Washington, DC, United States - 2 min read
Do you have materials handling news? Submit your news here

“I really enjoy your newsletter and share the articles with all my training team for industry currency. I also print and display specific articles on forklift safety and accidents on our notice board for all the learners who attend our training courses to read...”

Gavin Trim - CEO, High Risk Work Licence Assessor, Mechanical Handling Equipment Specialist - Nationwide Training

Thanks Gavin for sharing your experience with Forkliftaction

Words of support …

Undoubtedly, peer experience plays a crucially important role in our industry and it is extremely valuable for us to be part of the platform, where industry professionals, as well as end users can discuss and learn more about the materials handling world.

Alexandra Artemova, Marketing Specialist - Rocla AGV Solutions

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

“I really enjoy your newsletter and share the articles with all my training team for industry currency. I also print and display specific articles on forklift safety and accidents on our notice board for all the learners who attend our training courses to read...”

Gavin Trim - CEO, High Risk Work Licence Assessor, Mechanical Handling Equipment Specialist - Nationwide Training

Thanks Gavin for sharing your experience with Forkliftaction

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

Showcased in the Virtual Expo

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

CeMAT Australia is returning to the Melbourne Convention and Exhibition Centre on July 23 - 25, 2024.

Register for free and experience the leading global trade show for intralogistics, materials handling, and supply chain management, and familiarise yourself with the latest technology in your sector!

Register Now!