Crystal ball gazing is
always a dicey activity. But some trends can be picked out as
having the potential to take off in the year ahead.
Renewables is one. Although some
lessors supplying the UK renewables market are concerned that
government support may be turned down a notch or two (see
Fears over feed-in tariffs’
future), the underlying demand for renewables
funding is likely to remain strong.
Go deeper with GlobalData
In Germany, a world leader in
renewable energy, leasing companies see huge opportunity in the
sector. Carbon emission reduction targets will continue to be on
the political agenda across Europe and leasing is positioned to
help ensure they are met.
Smart meters, photovoltaic plant and
anaerobic digestion units are set to become the norm.
Materials handling is already emerging
as a sector to watch as competition heats up for business. Hitachi
(see Hitachi Capital in
direct sales drive), Aldermore (see
Aldermore one-stop
shop), and Close Asset Finance all aimed to build
their presence in this sector last year, attracted by the long
lifetime of the assets and the stability of RVs.
The logic goes that even if business
is bad, a forklift truck remains the last piece of equipment needed
to keep the operation running. In a weak and unpredictable economy,
essential assets are an attractive option.
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By GlobalDataLeasing deals for materials handling
equipment are often arranged at the point of sale with many deals
struck through dealers. Closer ties between manufacturers, vendors
and funders will also be a feature of 2011, as both seek a mutually
beneficial partnership.
If lending to small business is top of
the agenda – and many lessors claim that it is – then there needs
to be a reliable route to market and a good vendor relationship can
provide that.
Competition among lessors for the most
lucrative, and for exclusive, vendor tie-ups is to be expected.
Leasing is said to be a people business and it’s relationships that
will oil the wheels this year.
The trend for closer relationships
between manufacturers, dealers and lenders also points to the
growth in strength of captive finance providers. Captives are
gaining ground across Europe as the manufacturing economy reforms
and funding flows in from new sources.
In one case a Chinese bank is funding
a well-known Italian manufacturing brand (see
Zoomlion makes European funding
debut), and in another Siemens has gained a licence
to enter the banking arena. It will be interesting to see how the
corporation develops its financing offers as a result.
Infrastructure projects are on
Siemens’ agenda, and on the agendas of many other leasing
companies. Rail projects are especially attractive and the green
light given to London’s Thameslink rail project has been a ‘go’
sign for consortia to start bidding for the business (see
SMC bids for Thameslink).
Public works projects, where they
survive the cutbacks, should continue as a source of business for
construction and transportation assets.
Liz Bury
Top 30 under
40
Do you know of a great salesperson, a
switched-on credit evaluator or a genius IT manager poised to make
waves in leasing?
Leasing Life is seeking the
next generation of lessors – the industry’s potential movers and
shakers of the future – for its careers feature next month.
If you, or somebody you know fits into
the under-40 age bracket, and has accomplished or shows the
potential to achieve good things in the leasing sector, then please
get in touch by 14 January.
As part of this, we will also have a
feature on careers and human resource management in the sector.
Comments about the future of leasing are also sought, regardless of
age.
Contact: Claire.Hack@vrlfinancialnews.com
