2022 Equipment Outlook

Survey of members ranks 15 markets.

What are the hottest equipment sectors in 2022? Construction, trucks/trailers, medical equipment, machine tools and hi-tech/computers are the five top-ranked, according to a new survey of ELFA member asset managers and consultants. “What’s Hot/What’s Not: Equipment Market Forecast 2022” reveals industry perceptions of 15 equipment markets based on the ELFA member survey. The following examines the top equipment types: 

#1 Construction

Construction was the big winner of this year’s survey, ranking first for the ninth consecutive year. It also ranked number one for the largest increase in residual value sentiment. The outlook for construction remains excellent, based on pent-up demand for housing, and commercial and civil projects. The infrastructure bill will be an added plus to this already hot segment. 
 

#2 Trucks/Trailers 

Trucks/Trailers finished in second place for the second year in a row. This sector also logged the second-highest net residual value preference increase. New class 8 sales, even though constrained, increased a solid 16 percent in 2021. The outlook for this sector is excellent, as the effects of the pandemic weaken and the economy stabilizes. However, this segment is believed to be the target of a host of new regulations brought about by the administration, and also subject to chip and parts supply problems that limit output.

#3 Medical 

This sector still suffers from confusion regarding the future of healthcare finance with changes to the Affordable Care Act, and its effect on hospitals and clinics, further complicated by changing requirements and guidelines related to COVID-19. The industry has a preference for leased equipment, which continues unabated, driven by demographics linked to the increasing health care needs of the baby-boom generation. U.S. healthcare spending rose a solid 5 percent in 2021 accounting for 19.7 percent of GDP. 

#4 Machine Tools

Machine tools finished in fourth place, a ranking believed to be linked to demand from the contract machining and allied industries. It should be noted that a falloff in automobile manufacturing during 2020 caused by the effects of the pandemic greatly influenced this market through lockdowns and chip and parts shortages. However, orders increased sharply in 2021 by around 50 percent year over year. 

#5 Hi-Tech/Computers 

This sector continues to operate on very low margins but has a vast secondary market. In 2020, global sales sharply increased by 13.8 percent and increased another 14.8 percent in 2021 due to the high number of work-at-home employees. Used prices for newer PCs increased by around 10 percent in 2021 and remain high compared with 2019. Read about all 15 equipment markets by downloading the full report from the ELFA website.