Chelsea Neil 2017-03-10 07:14:14
Get to Know the Chair of the Foundation Research Committee
THE FOUNDATION’S RESEARCH COMMITTEE has been led by Jeff Elliott of Huntington Asset Finance for the past four years. Jeff graciously allowed me to interview him about his role with the Foundation and his vision for the Research Committee.
When did you become involved with the Foundation?
I officially became a member of the Foundation Research Committee back in 2011, but I utilized the research materials provided by the Foundation for several years before joining the committee. In 2013 I became Chairman of the Research Committee and joined the Board of Trustees.
What impact do you want the Foundation Research Committee to have on the industry?
In order for our industry to continue to grow, it must innovate. My strategic plans for the Foundation Research Committee lean toward inspiring people and companies within and outside our industry to develop new concepts and ideas that lead to developing people, products, processes and profit improvements in the future. In order to deliver this impact, we must continue to build our brand at the Foundation and drive increased donor participation. As our brand builds, our research will be recognized not only with our industry but within other industries that are adjacent to us. As we broaden our appeal to many industries, our impact on our industry will soar.
Jeff Elliott
What value does the Foundation provide that keeps generous corporate and individual donors pledging year after year?
Donors’ value to the Foundation continues to grow as we continue to deliver research driven information on current topical issues within the industry as well as refreshing analysis on longtime traditional equipment finance markets. Additionally, I believe donors have an emotional attachment to the industry that has been very good to them in their careers, which drives them to assist in the betterment of the industry. Last, as we have built more consistently available data-driven products like the Economic Outlook, some donors are building the research into their economic planning process, which improves their vision into the future. These factors combine to provide a compelling value proposition for companies and individuals associated with the equipment leasing and finance industry..
What are three things that most people don’t know about you?
I’m a pretty social guy and kind of an open book, but here it goes….
• Most people don’t know that I had a ponytail and wore parachute pants in the 1980s, and my future job ambition was to be a power forward in the NBA.
• In today’s world I value experiences more than tangible items, so I pursue the art of cooking and gardening when I’m not working in the industry.
• Last, from a business perspective, I pursue a bottom-up management style, where I try to obtain information from the “frontline,” outside sources, future-focused research and other industries that lead me to develop strategic initiatives that drive production, create efficiency or improve controls in my organization or industry.
Chelsea Neil is Program Assistant for the Foundation.
ACCORDING TO the Equipment Leasing & Finance Foundation’s Monthly Confidence Index, confidence in the equipment finance market was 72.2 in February, leveling off after January’s all-time high index of 73.4.
When asked about the outlook for the future, MCI-EFI survey respondent Thomas Partridge, President, Fifth Third Equipment Finance, said, “With the commitment of the Trump Administration to reduce regulation we expect more companies to start thinking more about expansion and the growth of their business versus a focus on regulatory compliance. Longer term concerns are over the direction of tax policies and their impact on the equipment finance industry. Any movement toward expensing capital expenditures could impact our industry. We think this is more of a 2018 issue than a 2017 issue.”
Key Findings:
• In February, 69.2% of executives surveyed believed business conditions would improve over the next four months, a decrease from 74.2% in January. Another 26. 9% of expected conditions to remain the same, up from 22.6% in January, while 3. 8% believed conditions would worsen, up from 3.2% in January.
• A total of 53.8% of respondents believed demand for leases and loans to fund capital expenditures (capex) would increase over the next four months, down from 71.0% in January. Another 42.3% believed demand would remain the same, up from 25.8% in January, while 3.8% expected demand to decline, up from 3.2% in January.
• Some 15.4% of respondents expected more access to capital to fund equipment acquisitions over the next four months, down from 19.4% in January. Another 84.6% expected the same access to capital, up from 80. 6% the previous month, while none expected less access to capital, unchanged from January.
• When asked, 42.3% of the executives expected to hire more employees over the next four months, up from 35.5% in January. Another 50.0% expected no change in headcount, down from 61.3% in January, while 7.7% expected to hire fewer employees, up from 3.2% in January.
• None of the leadership evaluated the current U. S. economy as “excellent,” unchanged from January. A full 100.0% evaluated the economy as “fair,” and none evaluated it as “poor,” both also unchanged from January.
• A total of 73.1% of the survey respondents believed U.S. economic conditions would get “better” over the next six months, up from 61. 3% in January. Another 26.9% believed the economy would stay the same, down from 38. 7% in January, while none believed conditions would worsen, unchanged from January.
• In February, 65.4% of respondents expected their company to increase spending on business development activities during the next six months, up from 58.1% in January. Another 34. 6% forecast no change in business development spending, down from 41.9% in January, while none forecast a decrease in spending, unchanged from January.
Access the latest Monthly Confidence Index at www.leasefoundation.org/research/mci.
Survey Comments from Industry Executive Leadership
“ We start the year with cautious optimism. Transaction flow is consistent; projects that had been placed on hold by our customers seem to be moving forward. I am concerned that the political environment is still distractive and the flurry of activity in Washington since the inauguration is not providing the level of comfort we had hoped for from the current Administration. Portfolios continue to perform well. Yields are still under tremendous pressure. 2017 will continue the trend of favorable credit windows and rates for customers looking to finance equipment.”
Valerie Hayes Jester, President, Brandywine Capital Associates
“ We continue to support our customers as they traverse through a low dollar commodity cycle. There have been some improvement on input costs, but challenges continue resulting in lower capex for many of our customers.”
Michael Romanowski, President, Farm Credit Leasing Services Corporation “
For the first time in a decade we are seeing a pro-business environment. Overall, the political atmosphere, economic conditions and world matters are improving.”
Harry Kaplun, President, Specialty Finance, Frost Bank
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