ELFA economic activity survey: April new business up 23% year-over-year

Monthly Confidence Index for May is 56.7, an increase from the April index of 54.0.

By ·

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $725 billion equipment finance sector, showed their overall new business volume for April was $7.5 billion, up 23% compared to volume in April 2012. Month-over-month, new business volume was up 10% from March. Year to date, cumulative new business volume was up 8% compared to 2012.

Receivables over 30 days were unchanged in April from the previous two months at 2%. They were down from 2.7% in the same period in 2012. Charge-offs were unchanged from March at the all-time low of 0.3%.

Credit approvals totaled 77.2% in April, down from 78.4% in March. Seventy-two percent of participating organizations reported submitting more transactions for approval during April, up 50% from the previous month.

Finally, total headcount for equipment finance companies was up 3% from the previous month, and was unchanged year over year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for May is 56.7, an increase from the April index of 54.0, reflecting industry participants’ increasing optimism despite continuing concerns over the economy and the impact of federal policies on capital expenditures.                    .

ELFA president and CEO William G. Sutton, CAE, said: “Both performance indices—the MCI as an indicator of future optimism about the direction of the U.S. economy, and the MLFI-25’s growth trend in new business activity—provide solid evidence that the demand side of the capital investment equation continues to pick up as the broader economy strengthens. It is our hope that this trend pushes into the second half of the year.”

Paul J. Menzel, president and CEO, Financial Pacific Leasing, LLC, said: “Over the last four years businesses of all sizes have pursued a defensive strategy of austerity by right sizing their balance sheets, maximizing operating efficiencies, and optimizing cash flow, all while top line revenue growth has remained weak.  This has kept many borrowers and lessees on the sidelines despite historically low rates. The anemic revenue story may be coming to an end as businesses seem to be going on the offensive and investing for growth, as this month’s MLFI data reflects.”


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Latest Whitepaper
Download the full 2016 Modern Materials Handling Salary Survey
How does your earning power match up with your peers across the material handling industry? Materials Handling salary survey, Warehouse manager salary survey, Warehouse Salary Research
Download Today!
From the November 2016 Issue
In Whirlpool Corp.’s Clyde, Ohio, factory, mobile robots have automated the delivery of parts to the line. The result is a more consistent, efficient and safer operation.
Optimizing home delivery: It takes more than planning
9th Annual Salary Survey: Success and Satisfaction Continue to Reign
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
Systems Report: Whirpool puts mobile robots to work
In Whirlpool Corp.’s Clyde, Ohio, factory, mobile robots have automated the delivery of parts to...
Modern Materials Handling’s 2017 Casebook Collection
The 2017 Casebook features more than 35 case studies that put the spotlight on successful innovation...

Brownells: Designing for Efficiency and Growth
Brownells’ new Iowa distribution center has taken touches—and miles—out of the order...
Industry celebrates National Manufacturing Day
Fourth annual Manufacturing Day is a grassroots effort by U.S. manufacturers to improve the public...