Evolve, Emerge, Excel!

To stay relevant and thrive in today’s fast-changing world, ELFA leaders must be ready to evolve. That’s the message that resounded throughout the 57th ELFA Annual Convention, which drew 1,025 equipment leasing and finance executives to Phoenix last month. In keeping with the Convention theme, “Evolve, Emerge, Excel!” attendees focused on positioning their companies for success by evolving their business operations, emerging stronger than ever and excelling at achieving their goals.

Linda Bernardi

Over three days, industry leaders challenged old assumptions and considered new strategies for success. From the breakout sessions to the networking receptions, attendees took advantage of multiple opportunities to build their networks, exchange ideas and best practices with other industry leaders and get up-to-speed on critical issues and trends affecting the industry and their businesses.

Keynote speakers shared timely insights on a range of issues relevant to the industry. Technologist Linda Bernardi kicked off the Monday General Session with an inspirational keynote on innovation and disruption and how they will impact the future—from the Internet of Things to artificial intelligence. Following Bernardi’s remarks, outgoing ELFA Chairman Dave Schaefer joined her on-stage for a Q&A session. At the Equipment Leasing & Finance Foundation luncheon, economist Dr. Mark Zandi reported on the state of the economy and the future forecast, followed by a Q&A with Foundation Chairman Jeff Elliott. At the Tuesday General Session, election analyst Dr. Larry Sabato handicapped the midterm elections and answered audience questions facilitated by incoming ELFA Chairman Jud Snyder.

Nearly 70 equipment leasing and finance professionals spoke at 20 concurrent breakout sessions and Business Council luncheons on a wide range of topics, including changing customer expectations, technology trends, rising interest rates, tax reform implications and attracting and retaining emerging talent.

 

Dr. Mark Zandi

 

Dr. Larry Sabato

Perseverance Is Key, says Schaefer

In his “State of the Industry” Convention address, Dave Schaefer, CEO of Mintaka Financial and Founder and CEO of Orion First Financial, LLC, opened his remarks with an interactive timeline illustrating the evolution of equipment finance. From the repeal of the investment tax credit to the Great Recession of 2007-2009, Schaefer observed that even in the most difficult times, the industry has remained resilient.

2018 Chairman Dave Schaefer reported on the state of the industry.

He highlighted the association’s influence on a number of industry milestones. For example, a major advocacy effort by ELFA positively impacted the direction of the new lease accounting standard, and the association’s advocacy on recent tax reform legislation benefitted members. “Thanks to ELFA’s advocacy efforts, the tax measure preserves important incentives designed to promote equipment acquisition,” he noted.

In recounting the history and resilience of the industry, Schaefer shared some of his own personal history. He revealed that in the late 1970s his father was taken hostage by Iran and held for 444 days. “This shaped me forever as a person,” he said. “I don’t allow myself to have a bad day because I know that people deal with really bad situations and I appreciate every day of my life. I also learned to appreciate perseverance.”

Schaefer said his appreciation of perseverance reappeared two decades later he launched his company Orion First Financial on Oct. 1, 2001, in the wake of 9/11 terrorist attacks. “It felt like the economy was crumbling down around us, and here I was launching a new business!” he recalled. “This was another lesson in perseverance. When we are faced with a great challenge, our determination and grit can be our most important assets.”

He acknowledged that many in the industry have faced challenges with grit. “I know many of you in the audience have faced adversity in your businesses and persevered to be here today. When we talk about our industry emerging and excelling, it is a testament to our ability to face challenges head on, adapt to change and discover new opportunities and solutions.”

After reviewing the evolution of the industry, Schaefer moved on to the second prong in the Convention theme: What’s emerging in the industry.

He spotlighted the changing customer experience, pointing to customers’ new mindset toward usage rather than ownership of equipment; the “uberization” of assets, or utilizing assets by sharing them; and increased demand for bundled services and enhancements. He observed, “For consumers it’s all about convenience: their desire to have access to what they want, when they want it.”

At the same time, equipment finance organizations are becoming more flexible, with employees working remotely, so they are attracting talent without geographic restrictions. “This digital age—of connecting people to your company—is where change is coming from and where the value is.”

Finally, Schaefer examined the third prong of the convention theme: What it means to excel for your employees, your companies and your customers.

He stressed that continuous improvement should be the top priority. “As individuals we should be constantly learning, looking for other successful people and watching what they’ve done,” he advised. He added that leaders need to learn how to get out of the way, to delegate and to allow others to grow.

Focusing on the customer is key, said Schaefer, emphasizing that companies need to offer quality products, deliver a great customer experience, provide value and anticipate the customers’ needs. “We have to be thinking about new products and solutions in advance of the customer even knowing he or she needs them,” he said.

He concluded by noting that the equipment finance industry touches every aspect of the economy. “We provide the capital that drives supply chains across every industry. We enable companies to acquire equipment and employ individuals, so they can support their families and their communities. The healthy flow of commerce and capitalism is good for our communities—and it’s good for our country. I hope you think about the value we create, and that you’re proud to be a part of that.”

 

Schaefer passed the leadership torch to incoming Chairman Jud Snyder.

Schaefer and Petta presented the Michael J. Fleming Distinguished Service Award to Deb Reuben.

Petta Spotlights Major Initiatives

In his “State of the Association” address, ELFA President and CEO Ralph Petta highlighted some of the major initiatives underway at the association. First, he previewed several new digital tools designed to help members succeed:

• The revamped Fundamentals of Equipment Leasing and Finance online training course delivers “virtual” hands-on experience and training in the fundamentals of our business.
• The Survey of Equipment Finance Activity Interactive Dashboard lets members explore a decade of key findings from the survey, from originations to performance and efficiency metrics to market data.
• New online communities will debut this Winter, giving members a new place online to interact, share ideas, answer questions and stay connected.

Petta also spotlighted a few of the many volunteer member committees that are doing critical work on behalf of the association.

• A new Technology Innovation Working Group has been formed to monitor and analyze technology developments. “We are in a time of rapid change, and our industry is being challenged to innovate to compete in a new world in which disruption—from automation to blockchain to artificial intelligence—feels like the norm,” said Petta, who promised to report on the findings of this new Working Group at next year’s Convention.
• The ELFA Women’s Council has been working to increase the engagement and leadership of women in the association and the equipment finance industry. “I am pleased to report that this important initiative to achieve gender balance is paying off,” reported Petta, sharing data showing increased engagement by women across the association’s volunteer bodies. In 2019 the Council will host the second annual Women’s Leadership Forum, April 1-2 in Washington, D.C.
• The Emerging Talent Advisory Council (ETAC), a group of up-and-coming employees from member companies, is working to encourage industry professionals to get involved in the association early in their careers and attract the best and brightest to the industry. Petta encouraged members to check out the Emerging Talent webpage for information about upcoming events and activities, including Emergence2019, July 17-18 in Washington, D.C.

Petta also reported that the Board of Directors recently updated the association’s Mission Statement and Strategic Objectives to include language embracing diversity and inclusion. Read more on the updates here.

Finally, Petta reported that thanks to the efforts of member volunteers, ELFA has been extremely active in a number of important advocacy areas.

• In the federal advocacy arena, the association is keeping a close watch on the impact of tax reform legislation on our industry and monitoring developments at the Consumer Financial Protection Bureau to make sure section 1071 of Dodd-Frank doesn’t make it more burdensome for members and their customers to do business together.
• ELFA’s state advocacy team has been effective this year in ensuring that legislative and regulatory proposals in states from California to Louisiana to Illinois—and almost every other state—do not make doing business in these jurisdictions more difficult or costly for member companies.  
• And, with the effective date of new lease accounting rules just around the corner, the association’s Lease Accounting Resource Group continues to review questions and implementation issues related to the new standard and is working to ensure that members’ concerns are communicated to and addressed by the FASB.

“ELFA is fortunate to be blessed with an unbelievable group of volunteer members who inspire the Board and ELFA staff every day,” said Petta. “As you and your businesses continue to ‘Evolve, Emerge and Excel,’ we are here to support you. That’s our singular goal. Thank you for your participation!”



For recordings of Convention sessions, visit the Conference Resource Center at www.elfaonline.org/events/conference-resource-center