SINCE THE MID-80’s, the Foundation’s Industry Future Council (IFC) has been a guiding light for the equipment finance industry, helping to steer its course three to five years into the future. The IFC publishes an annual report of its discussions and findings, and this year’s results will be shared first at the Foundation’s luncheon on Monday, October 25, during the ELFA 60th Annual Convention.
The Foundation partnered with Keybridge to conduct a forward-looking project tentatively titled Equipment Finance Strategic Assessment: Industry Recovery in a Post-Pandemic Economy. IFC members served as the primary focus group and advising team for this project, working independently and in virtual sessions to provide insight and input to guide the foreseeable future of the industry.
I connected with Jeff Jensen, Vice President at Keybridge, to learn more about what’s in store from the IFC’s findings this year.
CV: From a high level, what’s the importance of “futures thinking” and looking ahead for our industry?
JJ: Thinking carefully about emerging trends in the economy and one’s industry has long been a critical component of any business’s strategic plan, and this has never been more apparent than now, as the economy recovers from an historically deep (and, thankfully, historically short) recession triggered by the pandemic. While some impacts will be temporary, others are likely to be permanent and will require business leaders to adapt quickly in the face of unforeseen changes to fundamental assumptions about how they operate.
Some of the changes we are seeing in the industry, including changing preferences of equipment end-users and their customers, were beginning to emerge even before the pandemic. Equipment finance industry leaders who were already conducting futures thinking exercises will have a head start at adjusting to the trends identified in the IFC report and will be better equipped to identify new trends that emerge down the road.
CV: What are the implications of this vital work?
JJ: The IFC has long been the industry’s lens into the future, providing an early assessment of changes that could, over time, redefine how equipment finance firms operate. This year’s report continues that tradition, but the additional analytical structure that underpins this year’s report will help industry leaders sift through the noise and zero in on the most important economic, workforce and technology trends that will shape the equipment finance industry over the next five years.
CV: To reveal one of the key areas, what were some important high-level findings around Diversity, Equity and Inclusion in this report?
JJ: Firms, customers and the broader public are increasingly recognizing the business case for increasing diversity, equity and inclusivity. The IFC report references a broad swath of research illustrating how diverse and inclusive firms are more innovative, more profitable and have employees who are more engaged and loyal—leaving them better positioned to recruit and retain talent. However, while the private sector’s focus on DEI issues has increased in recent years, progress in many industries has been slow, including the equipment finance industry.
The report emphasizes that to improve DEI in a meaningful way, industry leaders will need to emphasize diversity across management levels (including upper management), expand recruitment channels, and make a concerted effort to reduce conscious and unconscious bias during the recruitment and employee review process—thereby creating a climate that encourages and elevates diverse perspectives in the workplace. Given that an increasing share of Americans (particularly younger Americans) want to work at companies that offer engaging and positive organizational cultures where creativity, innovation and exploration are encouraged, a strong commitment to DEI may become an important differentiator for recruitment and retention efforts.
To learn more about the IFC’s key trends and strategic assessment for the industry, join us in person or virtually at the 2021 ELFA Annual Convention. You won’t want to miss it!
For more information on the IFC and Futures Thinking including a video micro lesson on the subject, please visit this page on the Foundation’s IFC webpage.
The Foundation partnered with Keybridge to conduct a forward-looking project tentatively titled Equipment Finance Strategic Assessment: Industry Recovery in a Post-Pandemic Economy. IFC members served as the primary focus group and advising team for this project, working independently and in virtual sessions to provide insight and input to guide the foreseeable future of the industry. I connected with Jeff Jensen, Vice President at Keybridge, to learn more about what’s in store from the IFC’s findings this year.
CV: From a high level, what’s the importance of “futures thinking” and looking ahead for our industry?
JJ: Thinking carefully about emerging trends in the economy and one’s industry has long been a critical component of any business’s strategic plan, and this has never been more apparent than now, as the economy recovers from an historically deep (and, thankfully, historically short) recession triggered by the pandemic. While some impacts will be temporary, others are likely to be permanent and will require business leaders to adapt quickly in the face of unforeseen changes to fundamental assumptions about how they operate.
Some of the changes we are seeing in the industry, including changing preferences of equipment end-users and their customers, were beginning to emerge even before the pandemic. Equipment finance industry leaders who were already conducting futures thinking exercises will have a head start at adjusting to the trends identified in the IFC report and will be better equipped to identify new trends that emerge down the road.
CV: What are the implications of this vital work?
JJ: The IFC has long been the industry’s lens into the future, providing an early assessment of changes that could, over time, redefine how equipment finance firms operate. This year’s report continues that tradition, but the additional analytical structure that underpins this year’s report will help industry leaders sift through the noise and zero in on the most important economic, workforce and technology trends that will shape the equipment finance industry over the next five years.
CV: To reveal one of the key areas, what were some important high-level findings around Diversity, Equity and Inclusion in this report?
JJ: Firms, customers and the broader public are increasingly recognizing the business case for increasing diversity, equity and inclusivity. The IFC report references a broad swath of research illustrating how diverse and inclusive firms are more innovative, more profitable and have employees who are more engaged and loyal—leaving them better positioned to recruit and retain talent. However, while the private sector’s focus on DEI issues has increased in recent years, progress in many industries has been slow, including the equipment finance industry.
The report emphasizes that to improve DEI in a meaningful way, industry leaders will need to emphasize diversity across management levels (including upper management), expand recruitment channels, and make a concerted effort to reduce conscious and unconscious bias during the recruitment and employee review process—thereby creating a climate that encourages and elevates diverse perspectives in the workplace. Given that an increasing share of Americans (particularly younger Americans) want to work at companies that offer engaging and positive organizational cultures where creativity, innovation and exploration are encouraged, a strong commitment to DEI may become an important differentiator for recruitment and retention efforts.
To learn more about the IFC’s key trends and strategic assessment for the industry, join us in person or virtually at the 2021 ELFA Annual Convention. You won’t want to miss it!
For more information on the IFC and Futures Thinking including a video micro lesson on the subject, please visit this page on the Foundation’s IFC webpage.
Don’t miss the sessions “Capital Markets Review: Syndication and Origination in the Digital Age,” “Financing the Intersection of the Circular Economy and the ESG Revolution” and “Cyber Security – Keeping Your Company Safe” supported by the Foundation at the 2021 ELFA Annual Convention.
Learn more at www.elfaonline.org/ac.
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2021