What Headwinds? Equipment Buyers Are Feeling Breezy

Almost 40% of buyers are upping orders.

Sunny forecast: Despite yet another rate increase and continued economic headwinds, small-business equipment finance activity is rising.

• • In our survey of over 6,000 small-business decision makers, only 9% were delaying an equipment purchase because of the economic climate…
  • …While 38% were increasing their equipment appetite for 2023 over their original plans in January.

The big picture: This spring led to a “wait and see” mindset among many businesses. But with consumers still actively spending, businesses still investing, and the Fed possibly taking a “soft landing” approach, equipment finance and equipment buying activity is rising.

By the numbers: Here’s how major industry sector data on equipment buying intent has changed since January:

• • Manufacturing +4%
  • Transportation +3%
  • Construction +22%
  • Traditional IT +7%
  • Office Technology +4%
  • Ag/Forestry/Landscaping +19%
  • Restaurant +8%

Takeaways for brokers:

1. The end of 2023 could see a flurry of equipment buying, when the normal seasonal increase combines with pent-up demand from those businesses who have been waiting to see how the economy might impact them.
2. Though credit is still far tighter, equipment needs will still require funding—opening the door for brokers and creative capital providers to fill the gap.