Survey says S According to ELFA’s 2017 Survey of Equipment Finance Activity (SEFA), equip-ment fi nance companies generally mirrored those conditions with an overall increase in new business volume (NBV) of 2.5% in 2016. While the rate contrasts sharply with the 12.4% growth reported for 2015, the industry none-theless outperformed the national economy, which grew just 1.6% for the year, according to the U.S. Department of Commerce. Th e SEFA report covers key statistical, fi -nancial and operations information for the $1 trillion equipment fi nance industry, based on a survey of 115 ELFA member companies. Th e 300-page report, which is produced by Price-waterhouseCoopers, is the most important and comprehensive source of statistical informa-tion available on the equipment fi nance sector. Key fi ndings for 2016 as reported in the 2017 SEFA include: 2017 Survey of Equipment Finance Activity finds new business volume grew 2.5% in 2016 of a U.S. recession subsided in 2016 amid guarded optimism on Wall Street—made stronger by the presidential election—and slow but continued recovery in the wake of the Recession of 2008-2009. EVEN CONSECUTIVE YEARS OF GROWTH would tempt fate in any economy. But fears largest participating in this survey, fi ve saw large-scale declines or sea changes in the core businesses of their parent companies, and declining equipment sales translate to less fi nancing. INDEPENDENTS: NBV for independent companies climbed 12% from 2015 to 2016, the largest percentage increase of the indus-try’s three sectors. Th e growth wasn’t sur-prising, given banks’ continued regulatory restrictions and captives’ focus on fi nancing the products of their parent companies. But with more than $114 billion in new industry volume overall, independents continued to hold less than 8% of total market share, even though that share rose roughly 0.5% last year. Get Your Copy Participation in the SEFA is a benefi t of membership in ELFA. Member-respondents receive a complimentary copy of the Survey Report, as well as confi dential Individual Company Data Sheets. Learn more at www.elfaonline.org/SEFA . 2017 SURVEY of EQUIPMENT FINANCE ACTIVITY TICKET SIZE: By ticket size, industry per-BANKS : As in 2015, banks drove the indus-try’s 2016 growth, still bolstered by absorption of portfolios formerly owned by GE Capital and the fact that banks’ surging market share increasingly has led banks to compete mostly with other banks. NBV for the sector rose 5% in 2016. Market share also inched upward, from 67% in 2015 to 69% in 2016. In 2008, by compar-ison, banks held a 45% share. formance varied, with large-ticket showing a nearly 2% drop in new business volume for 2016, likely related to declines in corporate aircraft , railroad and trucks and trailers. Meanwhile the middle-ticket market experienced the largest growth in NBV at 5.2% over 2015 fi gures. Mid-dle-ticket claims the largest share of the equip-ment fi nance industry and covers a wide range of equipment types and end-user industries. Th e small-ticket market grew slightly by 0.8%. and transportation as well as fundamental shift s in information technology, captives experienced a sharp decline of more than 6% in NBV for 2016. Th is was the third year of struggle for the sector, but the fi rst in which new business vol-ume fell instead of rising somewhat. Not all cap-tives in the survey had diffi culties. But of the 10 CAPTIVES: Troubled by slumps in agriculture INDUSTRY SECTORS: End-user industries charting the most growth in NBV were utili-ties, industrial and air transportation. End-user industries marking the largest declines in NBV included truck transportation, which suff ered a freight slump that is abating in 2017. Also ex-periencing declines were mining, oil and gas extraction, still hurting from the oil glut, and agriculture, forestry and fi shing. ■ 2017 Small Ticket SURVEY of EQUIPMENT FINANCE ACTIVITY 32 JULY/AUGUST/SEPTEMBER 2017 EQUIPMENT LEASING & FINANCE MAGAZINE