As the tumultuous economy of 2021 makes its way through the first quarter, businesses are encountering sporadic patterns of equipment investment demand depending on which market sectors they serve.
Based on the Equipment Lease Finance Foundation’s U.S. Equipment & Software Investment Momentum Monitor, most vertical sectors are showing historically weak momentum after the COVID-19 pandemic suddenly halted investment during the first half of 2020.
Many transportation segments are seeing quicker recovery
Vertical segments that are exceedingly impacted by a stalemate in consumer mobility, particularly aircraft, are most likely going to remain weak. However, other vertical segments have the possibility for a greater recovery, including Class-8 tractors, other industrial equipment, and medical equipment.
The reason for this stronger recovery for transportation fleets is a product of the country’s reopening plans that placed heavy dependence and shipping activity for transporters, which ultimately has put more miles on trucks on the road today. Subsequently, truck replacement and investment strategies will rise in 2021, and will be a pivotal decision for many companies going forward.
This recent activity has already begun to pick up, as the most recent figures show that North American Class-8 orders in December reached the fourth-highest volume ever, surpassing 50,000 for the second month in a row, according to ACT Research citing truck makers’ initial data.
Grocery, retail, health segments driving demand
