Rising Use of Asset Finance Amongst Manufacturing Firms

  Enquire / contact me

Survey conducted amongst global top 40 industrial machinery manufacturers

Rising Use of Asset Finance Amongst Manufacturing Firms
Rising Use of Asset Finance Amongst Manufacturing Firms

Manufacturing firms worldwide are increasingly deploying asset finance to facilitate equipment acquisition and technology upgrade, according to the latest study from Siemens' Financial Services Division (SFS). Conducted amongst the global top 40 industrial machinery and equipment manufacturers, the research reveals that 76% of respondents have seen increased customer demand for asset finance when acquiring manufacturing equipment over the last two years.

The study also shows that usage of financing in the last 24 months varies in different regions of the world. In Europe, the use of asset finance remained static amongst manufacturing firms, attributable to the slow business investment environment. In contrast, the proportion of manufacturing equipment sales enabled through asset finance has risen over 2% per year in the US, and remarkably by over 15% per year in Asia. The great difference in growth rates must be viewed in the light that asset finance is still in a relatively early stage of its development in Asia compared with the mature economies of the West.

Looking at the next two years, 93% of respondents expect global interest in asset finance to increase still further from their manufacturing customer base. In particular, use of asset finance is expected to grow by over 5% annually in Europe, reflecting a previously deferred need to invest as economic confidence returns. In the US and Asia, uptake of asset finance by manufacturing firms is expected to continue to grow annually by 3% and by over 14% respectively. Strong demand for manufacturing equipment finance is expected to come, above all, from China, Poland/Industrial Eastern Europe and South East Asia. The growing popularity of asset finance is likely to be fuelled by budget pressures, with 72% of respondents reporting a "squeeze" on their customers' capital equipment budget in the last two years.

"Access to up-to-date technology is critical to a manufacturing company's competitive position, cost-control and productivity," commented Brain Foster, Head of Industry Finance at SFS. "By using asset finance, businesses can meet the constant demand for high-specification, tailor-made equipment in a financially sustainable way."

Asset financing arrangements such as leasing and renting allow manufacturers to acquire the latest industrial equipment without having to tie up precious capital. Since monthly payments can be fixed for the agreed financing period, businesses' borrowing terms are not subject to any changes in interest rates, volatility of shorter-term economics and market dynamics. With its ability to help businesses preserve working capital for tactical opportunities, asset finance is likely to gain further prominence in manufacturing industry.

Posted on January 6, 2015 - (167 views)
by
Related articles
High-Speed Camera with 4 Channels CXP-12
Bolts Configurator with Groove
3D Scanning and Inspection Solutions
Bi-Metal Temperature Gauges
Hoist Trolleys
Reels for Hydraulic Applications
Growth Record for Schaffner in Fiscal Year 2017/2018
Industrial Wireless LAN Access Points
FMAC NEO: 3-Phase Mains Filter
Molex Acquired CVS Division of Laird Limited
Sensing Innovation in Process and Control
Ultrasonic Flowmeter TRX
Hannay Reels Delivers Every Time
Multi-protocol Network Diagnostics
Take your Manufacturing to the Edge. Connect Everything
Power in new Dimensions - BXT Motor Family
Mechanical Position Sensor MP600 Series
Heaters of H series
3 Phase Book Style EMC Filter
Leading Distributor in Automation & Robotics Technology
High-Speed Camera with 4 Channels CXP-12
Bi-Metal Temperature Gauges
Industrial Wireless LAN Access Points
FMAC NEO: 3-Phase Mains Filter
Cogent DataHub IoT Gateway
Chip Fuse for Highest Demands
SUT-H: for Hgh Inrush Currents
FPBB RAIL - Compact DIN-Rail Filter
DG11: IEC Appliance Plug with Circuit Breaker
Labfacility L60+ Thermocouple & Fine Wire Welder
Bi-Metal Temperature Gauges
Hoist Trolleys
Interactive Projection Module
JVL Shows the Highlight of SPS IPC Drives 2018
Schildknecht Presents the Universal ioT Gateway at SPS IPC Drives 2018
Danfoss Drives Presented its Latest Novelties at SPS IPC Drives 2018
Rockwell Presents the iTrack System at SPS IPC Drives 2018
Microscope Optics by Optris Presented at SPS IPC Drives
Aucotec Presents the DCS Portal at SPS IPC Drives 2018
LMI Technologies Receives the Certification for Integration with Universal Robots