The Equipment Leasing and Finance Association, also known as ELFA, has released its Top 10 equipment acquisition trends for 2016.  In heavy equipment, there has been an all time high at 1.6 trillion dollars for the upcoming year.  It is predicted that this year will be great for heavy equipment and the factors are listed below.

  1. Investments in software and equipment will reach a high but it will be moderate in growth with so many businesses cutting back on spending.
  2. The end of zero interest rate policy will help to encourage businesses to invest before rates increase as the Federal Reserve will gradually put in rate increases. This will help to encourage small businesses to take advantage of low rates before they go higher.
  3. Financing options will increase but it will be at a slower pace than what is normally seen. This is due to various reasons but the growth will be there for heavy equipment.
  4. New lease accounting rules will go into effect this year. The new lease will determine how leases are accounted for but it will not affect a business’s ability to get equipment and lease it is as has been done in the past.
  5.  In recent months’ China’s economy is concerning everyone and every business. US businesses will more than likely feel a reduced demand from China as well as Japan and Russia due to the economic slowdown.
  6. The industry of heavy equipment will change widely in the market. While some will do amazing, some will have extreme weakness. Equipment with a lower outlook is oilfields, railroad, mining and agriculture. The housing sector should gain a lot of momentum this year.
  7. Flexibility and convenience is one of the things that will get better this year due to customer demand. Customer preferences have shifted with the want for bundling equipment, software and other items as well as alternative financing options. This will lead companies to have to come up with creative ways to fill the needs of their customers.
  8. Low oil prices appear to be a staple of the upcoming year. The US is receiving an increase supply of oil from Argentina, Iran and China. This may cause a lack of investment for energy equipment.
  9. The presidential election of 2016 will be closely monitored this year to determine if there will be any policy changes as this has the potential to change how some business is done.
  10. With heavy equipment, there is also a chance for wild cards to develop. Such as a low inventory of homes will help to increase the demand for construction equipment. However, the threat of terrorism could diminish the market and could have lasting effects.