Equipment Acquisition Trends for 2020

Equipment Acquisition Trends for 2020

The Equipment Leasing and Finance Association (ELFA) recently revealed its Top 10 Equipment Acquisition Trends for 2020. Projections for U.S. businesses, nonprofits, and government agencies estimate they will spend $1.91 trillion in capital goods or business investments this year, with financing being used to purchase a large majority of those assets.

According to ELFA these are the top 10 equipment acquisition trends you need to know for 2020:

1. Economic Growth – A strong labor market and healthy consumer spending in 2019 should continue its trend through the first half of 2020.

2. Capital Spending – The forecast for growth in equipment and software investment is 1.1% this year.

3. Interest Rates – Equipment financing will remain an attractive strategy as businesses take advantage of low fixed rates, flexibility, and other financing benefits.

4. Financing – Nearly eight out of 10 U.S businesses—79 percent—use at least one form of financing for their equipment acquisitions, with leasing being the most used method.

5. Trade Issues – Businesses will keep in mind trade issues and their influence to help or hinder the U.S. and global economic outlook.

6. Equipment – A number of equipment verticals are expected to improve or grow modestly in 2020.

7. Technology – Innovations in technology will make acquiring the most up to date equipment more attractive.

8. Lease Accounting – Small businesses and nonprofits will have additional time to meet requirements for compliance and take advantage of the benefits from leasing.

9. Politics – Elections in November have the potential to impact equipment investment decisions.

10. Wild Cards – There are also other factors that businesses need to keep an eye on for the potential impact they might have on their strategies.