Over the past year, the United States economy has been volatile due to the COVID-19 pandemic. As COVID-19 vaccinations start to roll out to the public and the economy begins to pick back up, how will it affect performance in the equipment financing industry?
In uncertain times, it’s important to be asking the right questions. Today we sat down with Spencer Thomas, President of KLC Financial to talk about the continued outlook for the equipment finance industry through 2021.
It’s going to be a strong year for equipment finance. We’re starting to see the economy pick up, along with new technology in all the different verticals we serve. There are so many new technologies coming. Robotics in manufacturing, medical innovations, the EV market in material handling, last-mile and trucking. There are so many things happening and equipment is always changing and evolving so quickly. Typically, equipment finance companies are quicker to approve and accept the new, high-tech equipment than a bank might.
The equipment finance industry has been waiting for an infrastructure bill, which is now in the works at the end of March. We’re going to see a big push in spending on infrastructure, which is really going to help our business. Construction companies and contractors are going to need to buy equipment. Additionally, the green energy push is going to help an already strong and innovative EV sector.
Recently I have seen EV technology emerge in several labor-intensive spaces including lawn and grounds maintenance, really showing that the EV marketplace is quickly expanding across industries in both commercial and consumer areas.
Another area where we’re seeing a bump that we didn’t necessarily anticipate was in agriculture. We had anticipated that agriculture was overdue to cycle back up, and we’re really starting to see that rebound now with commodity prices rising, so I think that will drive a lot of business as well.
I feel like there’s a lot of pent-up demand in the market. I think we’re really going to see trucking continue to improve. Agriculture, as we talked about earlier, will continue to grow. Commodity markets are improving and strong as prices are up and optimism is growing with business owners.
The pandemic has shown us that there is a need for more innovation in the medical industry, and we’re continuing to see that take a foothold into 2021. Manufacturing also continues to improve. What we’re hearing is that manufacturing is definitely picking up here.
KLC Financial can help finance your heavy equipment. With years of expertise in the equipment financing industry, we are ready for shifts in the market. For more information about our services or to learn more about our financing options, get in touch today.
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