2021 Thus far - A Trend Report
Harry Fry & Associates has been a proven leader in the heavy equipment finance and lease industry for the past 26 years, so it is no surprise that we look towards Harry Fry and his team to learn about the trends of the industry, as they certainly have their finger on the pulse.
As 2020 drew to a close, businesses and people alike were excited to welcome 2021 with open arms, in the hopes of putting 2020 behind. As we have passed the halfway mark of 2021, HFA is recording positive growth in financing and leasing of both new and used equipment.
So, what are the industry trends thus far? Used equipment continues to trend ahead of new equipment as it pertains to financing and leasing. HFA reports that used equipment accounts for more than half of all transactions thus far, a trend similar to the past five years. However, that doesn’t mean that interest in new equipment is waning. In fact, HFA has reported a 15% increase in new equipment transactions beginning in 2019. “While it is unlikely that new equipment will exceed used equipment purchases anytime soon, it is an interesting trend to watch.“, says HFA, President, Harry Fry. The largest issue this year is delayed deliveries. Parts and supplies have been limited, therefore delaying delivery of not only new equipment, but used as well.
While deal sizes vary for a number of reasons, HFA is reporting another trend to possibly keep an eye on- transactions between $100K- $500K. Over the past five years the majority of new and used transactions have consistently fallen between $100K-$500K, and while that still holds true for 2021, HFA is reporting an almost 10% increase in this category alone with all other price point categories holding steady to prior years data. This could suggest that the growth in business and industry alike will come from new and used equipment in this price range. Time will tell if this interesting data point is just one to watch or simply just a 2021 trend, but interesting nonetheless.