2016-11-15 12:18:32
A ROUSING ROCK BAND kicked off the opening general session of the 55th ELFA Annual Convention, capturing the energetic and upbeat mood of 1,000 industry leaders in attendance. The three-day event, Oct. 23-25 in Palm Desert, Calif., brought together executives from across the nation and the world to network, exchange best practices and address critical industry issues focused on the convention theme “Financing Solutions for a Changing World.”
Keynote speakers addressed packed audiences with their perspectives on a range of issues relevant to the industry. On Monday morning, political commentator Joe Scarborough offered timely analysis and insights into the upcoming presidential and congressional elections, followed by a Q&A session with ELFA President and CEO Ralph Petta. At the Equipment Leasing & Finance Foundation Luncheon, business strategist Jay Baer offered guidance for getting and keeping customers. Following Baer’s remarks, Foundation Chairman Bill Verhelle joined him on-stage for a Q&A session. At the Tuesday General Session, “Dean of innovation” Jeff DeGraff shared strategies for achieving cultural change that leads to sustainable innovation and growth, followed by a Q&A session with incoming ELFA Chairman Tony Cracchiolo.
Nearly 100 leasing and finance professionals spoke at 22 concurrent breakout sessions and Business Council luncheons on a wide range of topics, including managed solutions, e-leasing, fin-tech, the next generation, securitization, technology and the customer, the Foundation’s 2016 U.S. Equipment Finance Market Study and much more. In his Convention address, Outgoing Chairman Bill Stephenson, CEO and Chairman of the Executive Board of DLL, focused on challenges and opportunities impacting the equipment finance industry.
First he stressed that the needs of customers are rapidly changing, creating both opportunity and risk for the industry. “I’m not just talking about the increased demand for managed solutions or the trend toward usage versus ownership,” he said. “I’m talking about serious generational differences that are putting pressure on organizations to evolve every aspect of their business models—from their go-to-market strategies to their back-office systems.”
He noted the increasing role millennials are playing in influencing leadership at many organizations, and highlighted that our industry must learn about its future customers. “We need to find out what their needs are before they even realize they have them,” Stephenson said. “The key to innovation and differentiation is to solve an unmet need, and our industry is poised to do just that if we commit to embracing change.”
Another challenge: Business models are being confronted by alternative forms of financing and new technology. “We need to be paying attention to where the industry is headed,” Stephenson said. “And we need to be having the tough conversations today that will better prepare our organizations for the future.”
Not only is technology forcing lessors to innovate their business processes, said Stephenson, it’s dictating the way our partners and customers transact business. He forecasts that technology will disrupt many of the traditional distribution channels used today to sell equipment to customers and, in turn, will disrupt how leasing and finance solutions are introduced to customers at the point of sale. “How will lessors ensure their offer is still relevant and visible to these customers? How will we compete for this business?” he asked. “We need to be preparing for these changes now.”
2016 Chairman Bill Stephenson reported on the state of the industry.
Stephenson noted that the equipment finance industry also needs to consider the opportunities and challenges of a growing population. He predicts that resource scarcity will force manufacturers to reconsider their business models and manufacturing processes. He called for a shift to a more sustainable economic model and proposed a dialogue with manufacturers on how leasing can provide them with a higher degree of visibility into their installed base and support a circular model.
Another major challenge that ELFA members are facing is increased regulation, said Stephenson, noting that the cost of compliance is continuing to force companies out of the industry.
What can industry leaders do to address these challenges? First, said Stephenson, we need to invest in the next generation of leaders. “The industry is changing, our customers’ needs are evolving, and we need fresh, young talent to help us adapt to the new way of doing business,” he said.
Second, we should support ELFA’s Emerging Talent Advisory Council and Guest Lecture Program (GLP). Stephenson shared that he has presented the GLP to students at his alma mater, Florida State University, several times and has been encouraged to see their enthusiasm for the opportunities that exist in our industry.
Last but not least, ELFA must continue its lobbying efforts on the Hill. “Our association is hard at work making our voices heard on a variety of topics that continue to impact our business, including tax reform, the implementation of Dodd Frank, capital requirements and more,” said Stephenson. He called on all members to get involved with the association to help ensure the future success of the equipment finance industry.
In closing, Stephenson remarked that although his year as Chairman has come to a close, his commitment to advancing the equipment finance industry remains. “I will continue sharing my passion for the industry with college students and young professionals. I will continue mentoring high performers within my organization. I will welcome the advice and leadership of the next generation and lean on them to help us evolve the way we currently do business. I challenge all of you to do the same.” ELFA President and CEO Ralph Petta began his association address by recalling 1987, the year he joined the association staff. Not only did the stock market tank that year, but a recently passed tax reform measure had industry observers announcing the impending death of the leasing industry. Petta wondered if he had made a mistake in joining ELFA. “Oh no—what have I done? Nice career move,” he wryly recalled thinking.
Joe Scarborough
Jay Baer
Jeff DeGraff
Stephenson passed the leadership torch to incoming Chairman Tony Cracchiolo.
However, Pet ta soon learned about the resilience of the equipment finance industry. Amid many challenges that first year and in the years since, the industry has weathered the storm. “Smart, resourceful association members not only survived, they thrived,” said Petta, noting that the industry has grown in size to $1 trillion today. “The hallmark of this industry is its resilience, adaptability and ability to turn challenges into opportunities.”
Fast forwarding to present day, Petta reported that 2016—his first year as President and CEO—has been a very busy and exciting year, with the membership highly engaged on a number of critical issues impacting the industry. He announced several new initiatives the association is engaged in:
ELFA is conducting a Member Impact Assessment to gain a comprehensive picture of members’ environments and understand how the association can continue to support and advance the industry moving forward.
A digital documents education campaign will raise awareness among members about the business benefits of adopting electronic documents known as e-chattel paper.
Efforts to engage the younger generation continue through the Guest Lecture Program and the Emerging Talent Advisory Council, which is working on introducing a leadership development program.
Petta highlighted some key accomplishments from the past year, reporting that ELFA:
l Advocated for the industry at the federal level, with more members participating in Capitol Connections, hosting in-district meetings with Members of Congress and contributing to the political action committee LeasePAC.
Ralph Petta shared highlights from his first year as President and CEO.
Breakout sessions covered a variety of hot topic
The Women in Leasing Reception drew a large crowd.
A high-energy rock band kicked off the Monday General Session.
Remained very active on the state legislative front, engaging states on legislative and regulatory proposals including lenders licensing, state tax, automatic renewal and data security. Petta recognized Dennis Brown, VP of State Government Relations, who will retire at the end of 2016 after 23 years with the association.
Saw strong attendance at business and professional development events, delivering high-quality opportunities for members to exchange best practices and learn strategies for succeeding in an ever-changing marketplace.
Continued to be the leading, credible resource for industry data through ELFA and the Foundation.
Raised the image and visibility of the industry among internal and external audiences and redesigned the ELFA website as a “one stop shop” for industry information.
Met all membership goals, achieving a 90% membership renewal rate and adding 60 new members by year’s end. The association is financially sound and poised to achieve 2016 budget projections.
Michael J. Fleming Distinguished Service Award winner Ray James
Petta concluded by thanking outgoing Chairman Bill Stephenson and the membership for their continued support. “The association is so fortunate to be blessed with an unbelievable group of volunteer members… Each and every day, they inspire me and the ELFA staff.”
At the LeasePAC booth, members learned about ELFA’s political action committee and answered association and industry trivia questions.
The new mobile app allowed attendees to share updates, view attendees and more.
In the exhibit hall, 30 exhibitors showcased the latest products and services for the industry.
Recordings of Convention sessions are available free to attendees and for purchase by non-attendees. See details at www.elfaonline.org/events/ conference-resource-center
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