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01/09/2012

Top 10 Equipment Trends for 2012

 
Top 10 Equipment Trends for 2012

The Equipment Leasing and Finance Association has revealed its Top 10 Equipment Acquisition Trends for 2012.  What can facility managers and building owners expect from the industry this year?  Growth, uncertainty and end-user benefits come to the forefront as themes for 2012.  Is your strategic acquisition plan for 2012 in place?  These tips may help you formulate your plans:

1.            New equipment acquisition will gradually, but steadily improve.  The equipment finance industry is forecasting nine percent growth in investment in equipment and software for 2012, indicating that equipment acquisition by businesses in many industry sectors will increase this year. 

 

2.            Replacement needs will continue to drive new equipment acquisitions. Aging of equipment and replacement needs will be the main drivers of new equipment acquisition, as businesses await stronger signs of economic improvement before expanding their equipment investment.

 

3.            Uncertainty over proposed changes to lease accounting will have businesses playing a waiting game.  The resolution of proposed changes to lease accounting standards by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) later this year will have businesses waiting to find out how their balance sheets, earnings and other financials will be affected. Meanwhile, industry advocacy will continue to mitigate the negative impacts of lease accounting changes on U.S. businesses and the economy. The good news is that the primary reasons to lease equipment will remain intact, from maintaining cash flow, to preserving capital, to obtaining flexible financial solutions, to avoiding obsolescence.

 

4.            Used equipment prices will rebound in many, but not all, market segments.  The collateral value of many categories of equipment that ‘bottomed out’ over the last few years will rebound in 2012.  Car and truck values will be particularly strong, and construction equipment also will hold its value.  Certain segments, such as corporate aircraft, will remain at relatively lower values.

 

5.            Equipment finance companies will enhance customer relationship and support capabilities to build competitive advantages.  End users of equipment will benefit greatly from the efforts of banks and captive and independent finance companies to grow.  They’ll be providing specialized areas of expertise and value-added customer services that will be a win-win for both lessors and lessees.

 

6.            Credit availability will enable equipment acquisition for eligible businesses.   Last year credit approvals for the equipment finance industry remained above 75 percent.  In 2012, businesses seeking financing for equipment acquisitions will often find credit approvals higher in the equipment finance industry than from bank loans. 

 

7.            Organizations seeking ways to cut costs and increase operational efficiencies will look to technology innovations.  The flexibility, scalability and relative costs associated with cloud computing and shared services will begin to compete with new IT equipment purchases for many businesses.  

 

8.            The continuation of a limited bonus depreciation will allow businesses to plan for equipment upgrades or expansions.  The continuation of the depreciation bonus will allow businesses to write off 50 percent of the cost on new equipment purchases in 2012.  It remains to be seen whether the 100 percent bonus depreciation rate that expired at the end of 2011 will be restored.

 

9.            Global financial pressures will continue to add uncertainty to U.S. investment in equipment.  The fallout from the euro-zone crisis and other international financial instability will be a wild card in how much U.S. capital investment picks up this year.

 

10.          Individual equipment markets will see steady growth slightly below 2011 rates.  Investment in agriculture, computer and software, industrial, medical and transportation equipment will be positive, but may not match 2011 growth rates. Construction equipment investment is likely to slow in the immediate near term, but could be buoyed by the energy and housing sectors later in 2012.


 

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Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
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04/16/2014

The U.S. Army plans to start development of a solar array that will provide about 25% of the annual installation electricity requirement of Fort Huachuca, Arizona.

04/15/2014

The EPA's annual greenhouse gas emissions report is now available.

04/14/2014

Are you what some would call a “climate-change denier”? If so, you'll want to read this.

04/10/2014
Los Angeles has remained the top city for ENERGY STAR certified building since 2008, while Washington, D.C. continues to hold onto second place for the fifth consecutive year, according to a new list released by the EPA.
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04/03/2014
Building owners in Chicago now have more options when it comes to getting their building energy data verified.
04/01/2014
According to a new report from Eaton, such outages are up 15% in 2013 over 2012 and over half of those surveyed believe that downtime could have been prevented.
03/31/2014
The newly revised ANSI/ASHRAE Standard 105-2014, Standard Methods of Determining, Expressing, and Comparing Building Energy Performance and Greenhouse Gas Emissions, aims to provide a consistent method of measuring, expressing, and comparing the energy performance of buildings.
03/27/2014
Facility managers face an every expanding array of sustainability choices and challenges, but for the next generation of FMs, green practices could be second nature as sustainability literacy enters the K-12 school system.
03/25/2014
While the economic recession explains the decline in sales in 2008 and 2009, it is much less clear why sales have continued to fall.
03/24/2014
University of Washington (UW) scientists have built the thinnest known LED that can be used as a source of light energy in electronics.
03/21/2014
Mississippi Governor Phil Bryant signed Senate Bill 2378 into law, effectively enacting the state’s first building code.
03/19/2014
In an attempt to improve building energy performance, the DOE’s National Renewable Energy Laboratory has released a web-based tool called the Technology Performance Exchange, or TPEx.
03/18/2014
Could green building practices pose unanticipated life-safety hazards?
03/13/2014
Worried about workplace violence in your facility? Researchers have discovered that “mindfully observing” high-risk employees can avert danger and workplace violence.
03/11/2014
Through the DOE’s Building Energy Codes Program, every dollar the DOE has spent on building energy codes over the past two decades has resulted in $400 in energy cost savings.
03/07/2014
It is possible to harvest energy from Earth's thermal infrared emission into outer space, according to new research from the Harvard School of Engineering and Applied Sciences.
03/05/2014
Is your building prepared to handle an emergency?
03/04/2014
NASCAR revealed five newly installed charging stations for employee use.
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