Subscribe to our free, weekly email newsletter!


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 Modern Materials Handling Staff
June 05, 2013

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!

Recent Entries

Though the variations are endless, the right system is best achieved with careful planning toward a goal.

Dallas-Fort Worth-based regional operation offers service and support for key logistics hub.

This complimentary white paper addresses areas of potential benefit to a grocery distributor considering an investment in automated case picking technology.

In 2015, a new era in shipment pricing will go into effect when major carriers implement dimensional ("dim") weight pricing for all ground packages regardless of their size. This complimentary white paper, "Dimensional Weight: Don't Let it Weigh You Down", can help you optimize your packaging operation to minimize the financial impacts of dimensional weight pricing.

Replacing older, less-efficient lift trucks at the right time can reduce your maintenance costs, improve your productivity and, most importantly, save money and maximize your return on investment. So how do you determine the right time to make a new, significant purchase? Download this complimentary white paper for guidance on how to determine the ideal time to replace lift trucks and how planned replacement can benefit your operation.

About the Author

Josh Bond, Associate Editor
Josh Bond is an associate editor to Modern. Josh was formerly Modern’s lift truck columnist and contributing editor, has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce. Contact Josh Bond


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA