This market research report segments the global construction equipment by geography (the Americas, APAC, EMEA). The key leading vendors in this market are American Capital Group, Crest Capital, Fundera, GE, and JP Morgan Chase.
Technavio’s market research analysts estimate the global construction equipment finance market to grow at a CAGR of 10% between 2016 and 2020. Rise in construction activities across the globe has pushed several small construction firms to opt for leasing, which is considered to be a flexible funding option. Construction leasing mechanisms help construction companies preserve their working capital, which in turn aids in keeping the existing revolving line of credit. Therefore equipment financing companies are forming various strategic partnership with the financial institutions which would help the construction companies to generate cash from their working capital. The APAC dominates the global construction equipment finance market, covering around 57% of the total market share. Much of this region’s growth comes from the rising demand for infrastructure projects as well as equipment in countries like India and China due to factors like growing populations and higher GDP.
The new market research report from Technavio provides a breakdown and analysis of the construction equipment segments by technology.
“Owing to the convenient accessibility of equipment financing, construction companies are able to find cost-effective loans. Online financing is another option available to customers and helps them use available working capital efficiently. Most companies find that signing long-term rental contracts very advantageous as they can lease only the needed equipment. As for guarantees on loans, borrowers can negotiate terms and decide on signing covenants or asset liens. Since renting equipment helps to save on taxes and depreciation charges, construction companies from across the globe prefer to rent equipment,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research
There is a significant increase in the demand for used construction equipment such as dozers, excavators, cranes, and dumpers. Consequently, several financing companies such as Banc of America Leasing, Wells Fargo equipment finance, PNC equipment finance, U.S. Bank equipment finance and JPMorgan Chase equipment finance are offering fixed investment options to the construction companies. Also, many investment banks and financing companies are entering into tie-ups with construction equipment vendors so that they can help finance their projects. The leasing and financing options offered by these financing companies help the end-users save taxes.
The leading vendors in the global construction equipment finance market include American Capital Group, Crest Capital, Fundera, GE, and JP Morgan Chase. The scenario in the construction equipment financing market is quite complicated as many construction companies have money tied up with debtors in inventory and receivables. Cash flow management plays a very crucial role, and companies are looking for ways to increase cash flow. In this market, the lenders and borrowers work together to find viable solutions, which in turn will help to spur the prospects for market growth.
A more detailed analysis is available in the Technavio report, Global Construction Equipment Finance Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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