With more than half the year being over, it’s time for my “what’s hot in equipment financing” post.
I’ll start out by saying “hot” is a relative term. The current climate of supply chain delays, shortages, and inflation basically mean nothing is really “hot” like we used to think of it. But there are a few industries and equipment types that are holding serve.
Like last year, construction equipment is still quite popular. No matter what the economy has done over the last two decades, we’re still building, retrofitting, rebuilding, developing, etc.
In many parts of the country, homes are being built at record paces, and buyers are lining up. In my own neighborhood, when a home goes up for sale, it seems like there are ten prospective buyers in ten minutes. So companies are still building, and we’ve never stopped financing construction equipment.
We’re still seeing technology-related equipment remain strong, but I feel that’s more for scarcity than anything. Chip shortages are real, and when a company sees a piece of high-tech equipment available, they snap it right up. CNC Machines of all types aren’t in warehouses very long, if at all. Waiting lists for equipment have become a thing.
Of course, one of the biggest markets of all right now is used equipment, across the board. Used “everything” is hot right now. This obviously extends to the above-mentioned construction equipment, but almost anything used can be moved if it’s in decent shape.
The reasons are many. When companies cannot find a new version of a needed piece of equipment, they turn to the used market. In addition, many companies have closed / owners retired during the pandemic, but their machines, fixtures, POS systems, and similar are fetching solid dollar amounts. Whether sold through dealers, auctions, or private party equipment sales, used equipment is still very robust.
Like last year, I’m not going to do a “what’s not hot” post, because in plain terms, I don’t like pointing out industries that aren’t doing well. Business can be hard enough without me reminding everyone about industries that have seen better days.
That said, it does please me to shine a light on industries that are still strong. We read a lot of doom and gloom, but I can attest that many industries are calling us daily, and my commute is still slower than it needs to be due to construction. But I take that as a good thing, and not a bad one (it’s a good way to look at a traffic jam!)