According to a new report by the Equipment Leasing & Finance Foundation, 2014 will see a 3.1 percent increase in equipment and software investments across all industries in the United States. The growth will be mostly driven by economic stability and improved business confidence.
Despite the overall positive growth trend, some sectors will perform significantly better than others, the report predicts. For example, industrial equipment investment reached growth of 5 percent in the third quarter of the year and the trend is set to continue in 2014. Growth in the sector will be fueled by new orders and higher earnings, the Equipment Leasing & Finance Foundation said.
RELATED: Scada Software for Plant-specific Analysis of Individual KPIs
On the other hand, demand in construction equipment investment is expected to slow down next year, following a record level of investment in 2013. In the third quarter of the year investments dropped 2.8 percent year-on-year and the report says that the segment is likely to fall by a further five to 10 percent next year.
A positive development was recorded in the third quarter for transportation equipment investment, which went up slightly. The report forecasts more solid growth in the category over the next 12 months.
According to William G. Sutton, president and CEO of the Equipment Leasing and Finance Association, U.S. businesses will operate in a dynamic environment in 2014. Demand for equipment investment will increase in line with GDP growth, although policy uncertainty might prove to be a challenge for businesses.