December is the time to reflect on what has happened over the past year and to position an organization for the coming year.
The commercial equipment finance and leasing industry is robust, flexible, and innovative.
Participants have made many changes over the past eighteen months. Most industry participants have successfully navigated, or are well into the process of navigating, the transitional period. I have described 2024 as being consistently inconsistent. Delinquencies leveled off and then suddenly rose again, followed by a normalization of delinquencies. Production has been erratic. Originators and companies have had record production months and significantly lower production months throughout 2024.The constants in 2024 were that credit standards rightfully continued to tighten, and pricing remains elevated compared to previous years (2020 through 2024).The transition has been painful for some participants and has created unlimited opportunities for others. The industry has corrected and normalized; and the basic principles of risk and reward have been restored. Below are a few observations going into 2025:
- Participants that are focused on the future rather than the past will flourish.
- Automation and AI are rapidly changing the industry. The changes will be measured in months rather than years.
- The industry has once again been reminded that the equipment matters, and success requires equipment expertise.
- Vendors and end-users reward professional value-added services and expect their financial partners to know more than commodity-based products. Flexibility, creativity, and innovation are always rewarded.
- The industry needs leaders who truly understand every aspect of the commercial equipment finance and leasing industry. The next generation of industry professionals has a tremendous opportunity to reshape the industry to service the equipment needs of businesses.
- There are many new opportunities developing in the industry and participants need strong hunters to identify, prospect, and win these relationships.
- There is pent-up demand for commercial equipment in nearly every sector. The commercial equipment finance and leasing industry will be facilitating these acquisitions in 2025.
- There are unlimited opportunities for every organization and originator in 2025.
- I remain bullish and optimistic for the industry and all individuals who are fully engaged in offering superior products to both vendors and end-users.
|