The hottest trend of equipment investment in the U

U.S. equipment investment trend: business investment improves commercial equipment orders increase

U.S. equipment investment trend: business investment improves commercial equipment orders increase

China Construction machinery information

according to the American Equipment Finance Leasing Association (ELFA), in 2016, the investment in mechanical equipment in the United States, including government agencies, enterprises, non-profit institutions, will exceed $1.6 trillion, a record high. At present, the strong market situation and the warming economic environment in the United States can withstand the global industry downturn and potential political changes. ELFA recently announced the top ten trends of equipment investment in the United States. Under the influence of economic factors such as the end of the era of zero interest rates, equipment investment will reach a new high in 2016. However, due to the impact of the 2016 presidential election, low oil prices, economic slowdown and other environmental factors, the industry will grow moderately and will not advance by leaps and bounds. Driven by consumer demand benefiting from the improvement of the job market, the continued strength of the U.S. economy may encourage enterprises to finally allocate more funds for investment in new equipment after years of underinvestment

trend 1

the investment in equipment and software in the United States will reach a new high, but due to the control of expenditure by enterprises, the investment in equipment and software will achieve a moderate increase. Commercial investment will also hit a record high. As part of the continuous growth of GDP, the equipment investment cycle seems to have reached its peak. The weak manufacturing industry, low oil prices and other unstable global environmental factors make enterprises further control their expenditures from import to production. The investment growth rate is relatively slow, and SABIC PP 514m12 polymer is a single 1 material technology without phthalates. Different from investing in buildings and large-scale equipment in the past, enterprises now invest more in software and high-tech equipment. These devices are usually not as heavy and expensive as the previous "landmark devices". For example, many enterprises are using cloud services to handle logistics. Changes are so fast that official investment data cannot describe all ways in which companies expand and upgrade capacity

trend 2

the end of the era of zero interest rates has prompted many enterprises, including small enterprises, to invest before interest rates increase. After the first short-term interest rate increase in nearly a decade, the Federal Reserve of the United States (fed/fed) has gradually planned policies, and the additional interest rate increase will be completed within this year. Therefore, all kinds of enterprises were hesitant to invest before, but now they tend to invest at low interest rates. The Federal Reserve said that in the future, the pace of interest rate hikes by the Federal Reserve will be "gradual", and the future direction of interest rates will depend on economic data

trend 3

financing of newly purchased equipment will achieve solid growth, but the growth rate will slow down. In 2016, the United States is expected to invest $1.627 trillion in factory construction, equipment and software. About 64% or US $1.049 trillion of the investment will come from financial means such as loans, leases and credit limits. However, even if the financing tendency increases and the amount is large, the reduction of equipment replacement speed and the stagnation of market growth will also reduce the proportion of newly purchased equipment

trend 4

enterprises will prepare for the new financial leasing policy. Enterprises have long anticipated the new financial leasing policy and studied the uncertain factors of the market environment for many years, and are ready to accept it. Although the new standard of financial leasing will change the calculation method of leasing items in the enterprise's balance sheet, it will not affect the ability of enterprises to purchase additional production equipment in order to expand their business. Under the new rules, the factors that enterprises consider when choosing to lease equipment will remain unchanged, mainly for reasons such as ensuring cash flow, retaining capital, obtaining flexible financing strategies, and avoiding obsolete equipment

trend 5

the depressed economic environment in China has become a global issue. China's sudden economic cooling will affect global economic growth in 2016. The financial and commodity markets continued to encounter short pressure, while China's economic growth slowed to a 25 year low of 6.9% last year, which also triggered concerns about the spillover effect of China's economic slowdown. It is difficult to judge the impact of the recent financial market fluctuations and the uncertainty of China's problems on the U.S. economy. Now let's understand the impact of the operation method of the pneumatic coupling tensile testing machine. Decision makers are still hesitant about what action to take next. If this trend leads to a continued tightening of the financial environment, it may indicate a slowdown in the global economy and may affect the U.S. economy and inflation. Although only 7% of U.S. exports are targeted at the Chinese market, which seems a little insulated, U.S. manufacturers feel that China's economic slowdown cannot be underestimated, and the sharp decline in market demand in China, Russia, Japan and other trading partners has had a great impact on their business situation

trend 6

there are great differences in equipment investment in different industrial fields, some of which can bring growth momentum, and some of which have poor results. For example, the equipment market applied in agriculture, mining, oil field, railway, industry, material handling and other fields is poor, the medical equipment, computer and software markets are strengthening, and the construction machinery is relatively stable due to the rising market of real estate as an ideal alternative material

trend 7

customers will have higher demand for service convenience and flexibility, and non standardized financing means will be used more frequently. Customers' requirements for services are changing. The leasing method of pay per visit and other financing means will enable equipment finance leasing companies to develop more innovative solutions to meet customers' needs. Innovative means will not replace the traditional standard leasing, but will account for a larger proportion in the future financing methods

trend 8

low oil prices will continue to hinder investment in the energy sector. In 2016, the efficiency of the U.S. oil industry improved, and the oil supply of China, Argentina and Iran increased, making the world's crude oil production remain high. The low oil price continues, the operating pressure of production enterprises is doubled, and oil companies bear the brunt. At the same time, due to the slowdown of economic growth in China and Europe and the decline of oil demand, the global oil demand is far from enough to absorb the rapidly growing oil supply, and the investment in equipment in the energy sector has slowed down. In addition, although cheap oil prices have saved Americans a sum of money, American consumers are still cautious about spending this money, and now they are saving more money, which shows that the boosting effect of low oil prices on the U.S. economy is not as good as in the past

trend 9

the 2016 presidential election brings policy changes. The economic situation of the United States in the coming period will largely depend on the results of the presidential election, as well as the new president's policies on public expenditure and his tolerance for fiscal deficits. The new business environment will affect the equipment purchase plan of practitioners, which is currently in a wait-and-see state

trend x

unknown factors will affect investment decisions and bring resistance to equipment investment in 2016. At present, the U.S. real estate market is showing some signs of improvement. Investment in real estate and construction may increase. At the same time, rising house prices may deter potential buyers. The U.S. labor market will continue to strengthen, and the growth rate of wages will accelerate, boosting consumer confidence and increasing consumer spending. The possible inflation will make the Federal Reserve raise interest rates faster than expected. In addition, the potential threat of terrorist attacks affects the political and economic environment and changes the direction of capital investment in the short and long term