The Latest ELFA and Foundation Data

Margin Compression Declined in 2022 

According to the SEFA Interactive Dashboard, pre-tax spreads continued to decline following the first increase since the Great Recession. See the SEFA story in this issue and check out the new SEFA Interactive Dashboard at www.elfaonline.org/interactiveSEFA.

Tracking Pay Trends

Equipment finance CEOs and presidents saw their total compensation fall 6% on average in 2022, with an average bonus as a percent of salary of 60%, according to ELFA’s 2022 Small and Medium Enterprise Compensation Survey. Watch for the 2023 survey report coming later this year from the ELFA Knowledge Hub.

July Monthly Leasing and Index Year-Over-Year

ELFA's Monthly Leasing and Finance Index (MLFI-25) reports economic activity from 25 companies representing a cross section of the equipment finance sector.

New Business Volume 

Aging 
Charge-offs
Credit Approvals
Employment

Equipment & Software Investment Forecast 

High interest rates and slowing economic growth will continue to impact equipment and software investment growth as 2023 progresses, resulting in 0.9% investment growth and 1.6% GDP growth for the year. That’s the forecast from the Foundation’s Q3 update to the 2023 Equipment Leasing & Finance U.S. Economic Outlook. Watch for the Q4 update, coming in late October.

Confidence Rising  

Overall confidence in the equipment finance market was 50.4 in August, the third consecutive monthly increase, according to the Foundation’s Monthly Confidence Index. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by industry executives.


 

Sector Activity Mixed 

The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor tracks 12 equipment verticals. According to the September forecast:

• One vertical is expanding: computers
• Four are recovering/emerging: agriculture, construction, ships & boats, and trucks
• Seven are weakening: aircraft, materials handling, medical, mining & oilfield, other industrial, railroad, and software