Learning to Slow Down

When we rush through our days and lives, we fail to notice the simple beauty of living. Throughout our lives, we are taught to value speed and getting things done quickly. We learn that doing is more valuable than merely being, and that making the most of life is a matter of forging ahead at a hurried pace. Yet as we lurch forward in search of some elusive sense of fulfillment, we find ourselves feeling increasingly harried and disconnected. More importantly, we fail to notice the simple beauty of living. When we learn to slow down, we rediscover the significance of seemingly inconsequential aspects of life. Mealtimes become meditative celebrations of nourishment. A job well-done becomes a source of profound pleasure, no matter what the nature of our labors. In essence, we give ourselves the gift of time -- time to indulge our curiosity, to enjoy the moment, to appreciate worldly wonders, to sit and think, to connect with others, and to explore our inner landscapes more fully.    A life savored slowly need not be passive, inefficient, or slothful. Conducting ourselves at a slower pace enables us to be selective in how we spend our time and to fully appreciate each passing moment. Slowness can even be a boon in situations that seem to demand haste. When we pace ourselves for even a few moments as we address urgent matters, we can center ourselves before moving ahead with our plans. Embracing simplicity allows us to gradually purge from our lives those commitments and activities that do not benefit us in some way. The extra time we consequently gain can seem like vast, empty stretches of wasted potential. But as we learn to slow down, we soon realize that eliminating unnecessary rapidity from our experiences allows us to fill that time in a constructive, fulfilling, and agreeable way. We can relish our morning rituals, linger over quality time with loved ones, immerse ourselves wholeheartedly in our work, and take advantage of opportunities to nurture ourselves every single day. You may find it challenging to avoid giving in to the temptation to rush, particularly if you have acclimated to a world of split-second communication, cell phones, email and overflowing agendas. Yet the sense of continuous accomplishment you lose when you slow down will quickly be replaced by feelings of magnificent contentment. Your relaxed tempo will open your mind and heart to deeper levels of awareness that help you discover the true gloriousness of being alive.

The Equipment Leasing and Finance Association (ELFA) which represents the nearly $1 trillion equipment finance sector, today revealed its Top 10 Equipment Acquisition Trends for 2022. Real private investment by U.S. businesses in equipment and software is forecast to be almost $2 trillion in 2022, with a substantial amount of that investment activity financed, so these trends impact a significant portion of the U.S. economy.

ELFA President and CEO Ralph Petta said, “The pandemic is the underlying theme throughout the trends this year as equipment acquisition continues to drive supply chains across all U.S. manufacturing and service sectors. Nearly eight in 10 of U.S. businesses use equipment leasing and financing to acquire the productive assets they need to operate and grow. We are pleased to provide the Top 10 Equipment Acquisition Trends to help businesses make their strategic equipment acquisition plans, especially since there are significant opportunities for businesses to benefit from expected economic growth this year.”

ELFA distilled recent research and data, including the Equipment Leasing & Finance Foundation’s 2022 Equipment Leasing & Finance U.S. Economic Outlook, industry participants’ expertise and member input from ELFA meetings in compiling the trends.

ELFA forecasts the following Top 10 Equipment Acquisition Trends for 2022:

1. The U.S. economy will have solid growth in 2022. After a highly volatile 2021, the economy is on more even footing this year, with the widespread availability and effectiveness of vaccines reducing the risks from the pandemic. Potential for economic growth later in the year is substantial with 3.5% GDP growth forecast for 2022.  
2. Equipment shortages will continue due to supply chain disruptions. Delivery bottlenecks will likely persist, especially if U.S. trading partners shut their borders in response to new virus strains. Businesses will be likely to invest more capital in maintaining inventories of crucial components and develop relationships with new suppliers to reduce the impact of future disruptions.    
3. High inflation will be a major headwind for Main Street and the overall economy. In fall 2021, supply chain snags added to inflationary pressures, which will be prolonged this year. The Federal Reserve has announced several planned interest rate hikes in 2022. It remains to be seen what impact, if any, interest rate increases will have on supply or demand.
   
4. Positive growth in capital spending will continue. Equipment and software investment expanded by more than 15% annualized from January to June 2021, which was comparable to the rapid growth of the post-2008-09 recession. With continued, though not as strong demand, equipment and software investment growth of 4.6% is expected.
   
5. Equipment finance will play a significant role in economic growth. Based on historical precedent, more than half of equipment and software investment this year will be financed. In addition, inflationary pressures that drive equipment prices higher will make financing more desirable with payments spread out over time. 
   
6. Government fiscal and regulatory policies will pose opportunities and challenges to capital spending. Businesses will need to stay informed on a range of federal and state policy changes that will impact their operations. They include the long-awaited infrastructure spending law enacted by Congress that will have businesses investing in related equipment verticals, and federal and state initiatives that will create more red tape for lenders along with associated costs to borrowers.
   
7. Pandemic-driven changes in the workplace will continue to impact equipment demand. Ongoing remote/hybrid work arrangements will drive demand for new types of equipment and software as businesses continue to adapt to the “new normal.” Automation and AI technologies such as robotics, machine learning and natural language processing will boost the productivity of employees working remotely and fill the void of unavailable labor.
   
8. Many key equipment types will show growth. While equipment and software investment should expand at a healthy rate, growth is likely to be uneven across equipment verticals. Trucks, oil & gas equipment, and materials handling equipment should benefit from sustained demand. Verticals such as automobiles, construction machinery and agricultural equipment may continue to face pandemic-related headwinds such as input shortages, high energy prices and volatile demand conditions.
   
9. Businesses will increase their focus on digitization and data. As investment in digitization accelerates across most industries, businesses will need to leverage both customer and external data for competitive advantages in areas such as customer behavior and market dynamics. Cybersecurity risks will require increasingly robust cyber- and data-security protocols to be implemented.
10. “Wild cards” will play a role in business investment decisions. There are other areas in addition to the trends above that businesses will keep an eye on that could impact their equipment acquisition strategies. Continued fallout from the pandemic and future variants, ongoing labor shortages, passage of the “Build Back Better” spending package in Washington, and mid-term elections could all have potential business impacts.

For an infographic and video highlighting the Top 10 Equipment Acquisition Trends for 2022, please visit ELFA’s Equipment Finance Advantage website for end-users at https://www.equipmentfinanceadvantage.org/toolkit/10trends.cfm.

2022 Mantra

An interesting approach to making goals for the New Year courtesy of our friend Burke Franklin of www.businesspowertools.com

 

Do You Have a Mantra for 2022? SMART goals... Ugh! You're likely getting all kinds of New Year's advice... Here's a combo of 2 ideas I think are smarter and more realistic: From Perry Marshall's 80/20 Sales and Marketing, we learn to iterate the Pareto 80/20 rule. Of the 100 things you could do in 2022, 20% will give you 80% of the results you want... 20% of 20% = 4% will give you 80% of 80% = 64%... One more time and 20% of 4% rounds up to 1% giving you 80% of 64% = 51% Your #1 thing gives you 51% of the results you want! That can be your #1 thing to make your mantra for the year. The British Olympic rowing team had a mantra, “Does it make the boat go faster?” All ideas welcome, but does it make the boat go faster? Likewise, whatever you choose, does it make your business better? Define what better is in terms of financial success, personal success, fulfillment, engagement, and otherwise good juju for your company. * Will this blow our customers' minds? * Will it make us more money? * Will we have more fun working here?

The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI)

The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) is designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by the key executives from the $900 billion equipment finance sector. Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout the history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment, and durables and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising. Robust consumer demand, a strong labor market, and increased equipment and software investment—the lifeblood of the equipment finance industry--look promising. We can look forward to ‘getting back to business’ in 2022, provided supply chain issues ease significantly and the pandemic is effectively curbed

Low financial stress, an expanding housing sector, and increased federal spending on infrastructure are expected to propel equipment and software investment growth of 4.6 percent for 2022. Annual U.S. GDP growth for 2022 is forecast at 3.5 percent, according to the “2022 Equipment Leasing & Finance U.S. Economic Outlook” released by the Equipment Leasing & Finance Foundation. The Foundation’s report, which is focused on the nearly $1 trillion equipment leasing and finance industry, highlights key trends in equipment investment and places them in the context of the broader U.S. economic climate.

Highlights from the 2022 Outlook include:

•   While equipment and software investment is forecast to grow 4.6 percent (annualized) in 2022, supply chain constraints, high inflation, and tighter monetary policy are key headwinds to growth.

•   The U.S. economy slowed in fall 2021 as the pandemic worsened and supply chain constraints snarled global trade and drove inflation to multi-decade highs. However, growth in Q4 has likely rebounded, and the economy appears poised for an above-average year in 2022.

•   The U.S. manufacturing sector should continue to expand at a healthy rate in 2022, although supply chain issues, hiring difficulties, and high inflation could dampen industrial sector output, particularly during the first half of the year.

•   On Main Street, the outlook has grown increasingly cloudy. Small firms are more susceptible to surging input costs and labor scarcity than large firms, which may weigh on small businesses as the new year gets underway. On the positive side, consumer demand remains robust, and the winter months should be smoother this year than last.

•   The Federal Reserve officials recently shifted their positions in response to new data and now acknowledge that inflationary pressures are likely here to stay. The Fed is now expected to end quantitative easing earlier than planned and raise interest rates at least once by mid-2022. Multiple rate hikes are possible in 2022, particularly if job growth stays on track.

The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor,

Eleven verticals are peaking/slowing, and one is accelerating. Over the next three to six months, year over year:

•   Agriculture machinery investment growth will continue to decelerate.

•   Construction machinery investment growth will decelerate, though likely remain in positive territory.

•   Materials handling equipment investment growth should remain positive.

•   All other industrial equipment investment growth should slow.

•   Medical equipment investment growth should remain in positive territory, but will likely decelerate.

•   Mining and oilfield machinery investment growth should stay strong.

•   Aircraft investment growth will continue to decelerate, though remain positive.

•   Ships and boats investment growth is expected to remain in healthy territory.

•   Railroad equipment investment growth is expected to remain strong.

•   Trucks investment growth should remain healthy.

•   Computers investment growth should remain positive, but is unlikely to accelerate.

•   Software investment growth may have peaked, though should remain robust.

The full report of the Momentum Monitor is now available at https://www.leasefoundation.org/industry-resources/momentum-monitor/.