E quipm E nt m a nagEr s a rE En h a n ci n g t h E e uip m an in D ema BY SUSAN L. HODGES VER THE PAST YEAR, demand O 34 set equipment markets spinning. Heightened activity in petroleum, transportation, marine and power, to name a few, joined with low interest rates to push up vol-umes for the year and multiply calls for residual valuations, third-party inspections and apprais-als. Also in demand were experienced equipment managers, who were found to be in short supply. Services for The Alta Group. “Recent surveys of senior equip-ment managers have found that equipment management departments are working more closely with risk and credit departments to increase portfolio yields, address compliance concerns and mitigate risk.” “This was a year where our roles in the industry expand-ed,” says Bob Mercogliano, Managing Director & Head of Asset Management for Sun Trust Equipment Finance Group in Atlanta. “For years we were contracting, and now I’m see-ing a lot of companies acknowledge that they have to invest more in asset management, which has created a lot of job opportunities for asset managers.” No wonder. ELFA’s Monthly Leasing & Finance Index showed year-over-year leasing and finance volume growth reached 6% as of November 2014. “Because of this, equip-ment management services have been in high demand,” says Kimberly Esposito, Managing Director, Asset Management Volatility, in Vogue The pace of change is one reason. The faster markets move, the tougher it is to gauge risk, adjust regulatory compliance processes and calculate accurate residual values. Consider the heavy-duty truck market. Prices for Class 8 trucks are now at an all-time high because firms that clung to old in-JANUARY/FEBRUARY 2015 EQUIPMENT LEASING & FINANCE MAGAZINE SHUTTERSTOCK/ THINKSTOCK