Construction equipment leasing and sales are expected to increase for the duration of 2021, despite the presence of the Covid pandemic.
So says a new report issued by the Washington-based Equipment Leasing and Finance Association, noting that the “propensity to finance equipment is higher than it is has been over the last two to three years,” fueled in part by declining long-term interest rates.
The report also says that construction equipment investment will be aided in the coming months by an “increased demand for single-family homes.”
Forecasting an overall nearly 8% growth in equipment leasing activity for the year, the ELFA report is also bullish about the nation’s Gross Domestic Product growth for 2021, which it pegs at 4.7%.
That GDP growth, adds the report, “will be weighted toward the second half of the year once vaccines are widely available.”
A separate report issued by the group showed that for the month of December new business volume in equipment leasing was equal to $12.1 billion, significantly up from November’s $7.3 billion.
But last year’s overall business volume was down by almost 6% compared to 2019.
For the duration of 2021 different types of equipment will be in demand for different kinds of businesses and services, largely framed by Covid-19. Technology upgrades for those who are working virtually, “will be among the wide-ranging impacts in the wake of the pandemic.”
By Garry Boulard
