How Equipment Financing Fuels Our Economy [infographic]
There’s no shortage of indicators that describe how the economy is performing, but some of the most telling signs are business creation and hiring. For example, mosts economists say that anything less than 5 percent unemployment can be considered full employment. The jobless rate has been below this threshold for most of the year so far. Additionally, the private sector has added jobs for over 75 months in a row now.
Much of this prosperity wouldn’t be possible without entrepreneurial investment, both in the U.S. economy and in business owners’ operations. In fact, when it comes to obtaining equipment, approximately 70 percent of businesses use some form of financing, according to the Equipment Leasing and Finance Association.
Here’s a brief look at how various forms of equipment financing fuel the economy’s engine:
Consumer buying represents 70 percent of economic growth. Much of what we purchase in stores every day is brought there by commercial vehicles. Trucks move more than two-thirds of the freight transported in the U.S., according to the American Trucking Associations.
Our good health and well-being are priceless, but when hospitals and health care facilities invest in MRIs, X-ray machines and EKGs – putting millions of people to work so that they can be produced and operated – the investments help keep the economy in fighting shape.
No one can say the auto sales industry is still in a slump, not after it reached an all-time record of 17.5 million cars sold in 2015, according to vehicle valuation firm Kelley Blue Book. Without car assembly equipment used by auto manufacturers, the economy’s engine might need a jumpstart.
Restaurant & Food services
Just about everyone likes to go out to eat. A recent Gallup poll found that most Americans have a favorable opinion of the nation’s eateries. If our favorite restaurants didn’t have the equipment that makes for timely service, customers would likely eat in more often.
Take a look at the infographic below for a few other ways today’s most asset-intensive industries support the U.S. economy: