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Investment in the equipment and software markets is expected to see continued growth in 2022, and at a rate that will outpace forecasted strong U.S. overall economic growth.
That’s according to a new report released Dec. 15 by the Equipment Leasing & Finance Foundation — one of the top trade associations in the U.S. commercial equipment finance sector.
The foundation’s 2022 Equipment Leasing & Finance U.S. Economic Outlook report detailed how relatively low financial stress, growth in the housing market, and accelerated infrastructure spending are set to carry investments in equipment and software to an increase of 4.6% in 2022. Meanwhile, 3.5% full-year growth is expected in U.S. gross domestic product.
“Despite uncertainty around new COVID variants, ongoing supply chain issues, and inflation, positive factors should outweigh the headwinds,” ELFF Chairwoman Nancy Pistorio said in a news release. “Robust consumer demand, a strong labor market, and increased equipment and software investment — the lifeblood of the equipment finance industry — look promising.”
The report noted that although the U.S. economy slowed this past fall amid the rise of variants of the COVID-19 pandemic — and various supply chain disruptions — growth likely accelerated for most of the fourth quarter, and 2022 is set for an “above-average year”.
In U.S. manufacturing, the foundation said growth is likely to accelerate in 2022 despite supply chain headaches, especially in the first six months.
The foundation reported that of the 12 equipment and software investment segments covered, 11 reflected investment growth that was peaking or slowing heading into 2022, while only one was accelerating. The report said mining and oilfield machinery, ship and boats, railroad equipment, computers, software, trucks, and material handling equipment were areas expected to see investment growth remain healthy or expand over the next three to six months compared to a year earlier.
Agriculture machinery, construction machinery, medical equipment, aircraft, and all other industrial equipment are expected to see investment growth decelerate.
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