A new survey by the Equipment Leasing Assn. (ELA) shows that the equipment leasing industry managed to grow slightly in 2001 despite an economic downturn and the aftershocks of the Sept. 11 attacks.
ELA's Survey of Industry Activity indicates the industry added $114.6 billion in new business volume versus $112.7 billion in 2000, a meager 1.6% increase, but positive growth nonetheless.
Most of that new business volume came from large transactions exceeding $5 million (35%), followed by leasing contracts worth between $250,000 to $5 million (26%). The most widely used re-marketing method to dispose of equipment at the end of an initial lease term, ELA said, remains being purchased by the original lessee (54%).
ELA said its survey results are compiled from 134 companies in one of four market segments that are determined based on the typical transaction size of a majority of their lease volume.
"The survey results demonstrate that U.S. businesses continue to capitalize on the benefits of leasing for their equipment needs," said president Michael Fleming. "Equipment leasing remains a strategic financing option, which offers value beyond just acquiring equipment."