Financial Stories Archives - Material Handling Wholesaler

Flux Power reports Fiscal Year 2026 First Quarter Financial Results

Thu, 13 Nov 2025 21:57:18 +0000

Flux Power Holdings, Inc. , a developer of advanced lithium-ion energy storage solutions and software-driven electrification for commercial and industrial equipment, has reported financial and operational results for the 2026 fiscal first quarter ended September 30, 2025. First Quarter and Recent Business Highlights Received $2.4 million in repeat orders from a leading global food and beverage distribution company and a global industrial equipment manufacturer Secured a large order with another major airline customer, doubling the number of North American airlines served to eight from last year Graduated its software SkyEMS 2.0 SaaS platform from beta into production with multiple paying customers Received UL EE Listing across its material handling portfolio, opening up a new $1B total addressable market across the chemical, oil & gas, agricultural processing, and pharmaceutical industries Received UL 1973 Listing for its G80-G2 lithium-ion solution, the company’s first 80V product for mobile battery energy storage systems (BESS) in the ground support equipment (GSE) industry, resulting in new market opportunities in AGVs and AMRs Regained compliance with Nasdaq’s continued listing requirements Raised $13.8 million in new capital, net of fees and underwriters’ discount Continued to execute on cost reductions in pursuit of profitability goals CEO Commentary “First quarter revenue reflected a temporary pause in customer orders due to the uncertainty surrounding the tariff situation and overall near-term caution on the macroeconomic environment,” said Krishna Vanka, Flux Power’s CEO. “That said, we have begun to see order activity materially rebound in the second quarter, highlighted by multi-million-dollar orders from significant material handling customers and a more recent large order from a major new airline customer. Flux Power now supplies eight major North American airline carriers. We also continue to receive strong interest in our SkyEMS SaaS software platform with the recent production release of version 2.0 to a growing number of paying customers. “Additionally, we further strengthened our financial position and balance sheet through a recent public equity offering and a prior private placement during the quarter, which collectively raised $13.8 million in proceeds net of underwriter’s discount and offering related expenses. This additional capital will be used for working capital purposes, allowing us the flexibility to more rapidly execute on our operating, sales, and product development initiatives as we pursue our ultimate goal of delivering sustained profitability in the quarters ahead. Our strong portfolio of advanced mobile energy storage products combined with our integrated software solutions provide Flux Power significantly expanded market opportunities with both new and existing customers that will be key to driving our future growth and expansion.” First Quarter Fiscal 2026 Financial Results Revenue for the first fiscal quarter of 2026 was $13.2 million, compared to $16.1 million in the first fiscal quarter of 2025. Gross profit for the first fiscal quarter of 2026 was $3.8 million, or 28.6% of revenue, compared to $5.2 million, or 32.4% of revenue, in the first fiscal quarter of 2025. Operating expenses for the first quarter were $5.9 million, compared to $6.4 million in the prior year quarter. Operating loss for the first quarter was $2.2 million, compared to a loss of $1.2 million in the prior year quarter. Excluding costs associated with the multi-year restatement of previously issued financial statements and stock-based compensation, first quarter non-GAAP operating loss was $2.0 million, compared to an operating loss of $0.6 million in the prior year period. Net loss for the first quarter was $2.6 million, or ($0.15) per share, compared to a net loss of $1.7 million, or ($0.10) per share, in the first quarter of 2025. On a non-GAAP basis, first quarter net loss was $2.4 million, or ($0.14) per share, which excludes the above-referenced costs, compared to a net loss of $1.1 million, or ($0.06) per share, in the prior year. Adjusted EBITDA for the first quarter was ($1.7) million, compared to ($0.4) million in the prior year period. Balance Sheet As of September 30, 2025, the cash balance was $1.6 million. Subsequent to quarter-end, the Company raised approximately $9.2 million in proceeds net of fees and underwriters discount from a secondary public offering of our common shares. On September 15, 2025, the company closed a private placement offering of prefunded warrants of $4.6 million net of offering related expenses. The cash impact of both offerings is approximately $12.6 million, net of debt conversion and fees. Additional sources of working capital include a revolving line of credit under a $16.0 million credit facility with Gibraltar Business Capital (“Gibraltar”). Our current borrowing capacity under the Gibraltar line of credit is $16.0 million subject to available collateral as defined by the credit agreement and satisfaction of certain financial covenants.

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Manufacturing Technology Orders Grow 4.3% in June 2024 as Year-Over-Year Order Gap Narrows

Mon, 12 Aug 2024 14:37:32 +0000

Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology, totaled $386.7 million in May 2024. Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT – The Association For Manufacturing Technology, totaled $402.3 million in June 2024. New orders of metalworking machinery were up 4.3% from May 2024 but down 1.6% from June 2023. Year-to-date orders reached $2.2 billion, down 10.7% compared to the first half of 2023. While the value of orders maintained momentum in June 2024, with the average value increasing significantly, the number of units ordered for the month dropped to 1,471 units, the lowest since July 2023. This divergence indicates manufacturers are generally investing in more automated, task-specific solutions. This trend is further confirmed, as inflation among machine tools, measured by the producer price index, has stayed relatively flat for the last several months. June 2024 orders from contract machine shops dropped over 10% from May 2024 in both the number of units ordered and the total order value. Through the first half of the year, the value of these orders was the lowest since the first half of 2020, but the number of units ordered fell further, reaching its lowest level since the first half of 2010. Primary metal manufacturers have also pulled back machinery orders in 2024, dropping to the lowest levels in both unit count and value since the first half of 2010. Demand for machinery in this sector has been waning, as the World Steel Association reports that global steel production in the first half of 2024 was flat compared to the first half of 2023. One notable exception to this recent trend is the aerospace sector, which has increased orders in the first half of 2024 to the highest number of units since the first half of 2018, yet the value of orders remains about 2% below orders placed in the first half of 2022. With capacity utilization in the aerospace sector reaching post-COVID peaks, this confirms that these manufacturers are in need of additional machinery to meet growing demand. Orders of manufacturing technology are down nearly 11% in the first half of 2024 compared to 2023, but that difference has narrowed in the past several months after the beginning of the year failed to meet the optimistic expectations formed from anticipated interest rate cuts and strengthened consumer and business sentiment. Despite the lingering uncertainty around the Federal Reserve’s interest rate policy, the pending election, and escalating geopolitical tensions, the remainder of 2024 seems ready for a rebound in demand for manufacturing technology – perhaps even more so with the opening of IMTS 2024 – The International Manufacturing Technology Show in September at Chicago’s McCormick Place.

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Manufacturing Technology Orders grow in May 2024 despite sustained high interest rates

Tue, 09 Jul 2024 22:51:25 +0000

Manufacturing technology orders, measured by the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology, totaled $386.7 million in May 2024. New machinery orders were up nearly 22% from April 2024 and 6.5% over May 2023. This is the first month in 2024 where the value of orders placed exceeded those of the same month the previous year. Through the first five months of 2024, orders totaled $1.8 billion, a 12.2% decrease compared to 2023. Manufacturers have realized they can no longer outwait the Fed’s “higher for longer” interest rate strategy. As a result, they are beginning to increase capital equipment purchases to meet the sustained demand for goods and machinery from consumers and businesses, even as high interest rates persist. Despite 2024’s mild slump in machinery orders compared to the beginning of 2023, cutting tool orders, as measured by the Cutting Tool Market Report, a collaboration between AMT and the U.S. Cutting Tool Institute (USCTI), show 2024 consumption holding steady at record levels. This indicates that despite reported hesitation to invest in additional machinery, production levels remain elevated, which is confirmed by the measure of industrial production from the Federal Reserve. Contract machine shops, the largest consumer of manufacturing technology, increased their orders from April to May 2024 but significantly less than the industry’s overall growth. While some OEMs have made additional investments despite heightened interest rates, contract machine shops have consistently failed to keep pace with the overall market throughout 2024. Electrical equipment manufacturers are having the best start to the year since the record-setting start of 2022. Similarly, power generation and transmission equipment manufacturers are investing at the second-highest year-to-date rate since 2008. These industries undoubtedly benefit from the government investment authorized by the CHIPS and Infrastructure Acts and are, therefore, less sensitive to interest rates than others. As previously reported, the Biden administration is in a rush to spend the remaining money allocated by Congress under these bills in case President Joe Biden does not win reelection in November. That spending could accelerate, given the public’s response to Biden’s debate performance at the end of June. The automotive sector continued to purchase machinery but at a much slower pace than the previous two years. Vehicle assemblies increased in May 2024 and remained above the monthly average this year. Like manufacturers awaiting lower interest rates before investing in machinery, consumers may have grown tired of waiting out the Fed, as new vehicle sales increased in April and May. The Fed’s interest rate path has thrown a wrench in many economic forecasts since the beginning of the year. The outlook for manufacturing technology orders was no different. The beginning of the year fell well short of expectations, but the lag behind 2023 has narrowed in recent months. Whatever course the Federal Reserve eventually takes with interest rates, the USMTO data shows the appetite for additional manufacturing capacity growing as we approach September’s IMTS 2024 – The International Manufacturing Technology Show, the largest manufacturing trade show in the Western Hemisphere.

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Port of Long Beach sets $760 million annual budget

Mon, 17 Jun 2024 22:26:49 +0000

The Long Beach Board of Harbor Commissioners has approved a $760 million budget for the Port of Long Beach for the 2025 fiscal year, establishing a plan to fund new capital improvements in rail, zero-emissions, and other infrastructure. Later this year, the budget will be sent for approval to the Long Beach City Council. It includes a record $25.8 million transfer to the City’s Tidelands Operating Fund, which supports quality-of-life projects along Long Beach’s 7-mile coastline that have improved shoreline safety, cleanliness, water quality, facilities, and other amenities. The Port’s budgeted spending for the 2025 fiscal year, which begins Oct. 1, is 19.5% higher than the budget adopted last year. The increase is largely due to infrastructure projects like the Pier B On-Dock Rail Support Facility, which breaks ground this year, and the proposed Pier Wind. If approved, Pier Wind would be the nation’s largest facility specifically designed to assemble offshore wind turbines. Operating revenue is estimated to be 6.8% higher than last year’s budget. “This budget reflects our values, balancing serving as an economic engine for our city and region and growing responsibly while limiting environmental impacts,” said Port of Long Beach CEO Mario Cordero. “We are optimistic about the year ahead and this spending plan builds our competitive advantages for the green future.” “Because trade, construction and tourism support 51,000 jobs in Long Beach – or one in five jobs – it’s important we stay focused on attracting business, building for the future and moving cargo sustainably,” said Harbor Commission President Bobby Olvera Jr. “This budget advances these goals by leveraging our stable financial strength as a top gateway for global commerce.” Next year’s proposed capital budget totals $368.3 million, 47.2% higher than the prior year. Of the sum, $204.9 million is for the Pier B project, which will break ground this summer. Pier B will shift more cargo to “on-dock rail,” where containers are taken to and from marine terminals by trains. Moving cargo by on-dock rail is cleaner and more efficient, as it reduces truck traffic. No cargo trucks would visit the facility. The Port of Long Beach maintains one of the most comprehensive seaport infrastructure programs in the nation. Also included in the budget is approximately $25 million in Clean Truck Fund subsidies to support the transition of the heavy-duty truck fleet to zero emissions. The Port of Long Beach has twin goals of a zero-emissions cargo-handling fleet by 2030 and zero-emissions trucking by 2035. Additionally, during the Board’s action, the amount allocated for the Community Sponsorship Program was increased from $2 million to $3 million. The sponsorship program helps the Port of Long Beach engage with and inform local community members about Port operations and initiatives. As the City’s Harbor Department, the Port of Long Beach does not use tax revenue to support operations.

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Will labor costs and consumer confidence crash the holiday hiring season?

Mon, 18 Sep 2023 14:32:59 +0000

As the 2023 holiday season kicks off, the labor market is starting to cool and employers are hiring at a slower clip. As labor costs and interest rates rise, seasonal employers may rein in their typical hiring sprees, as both consumers and employers feel the crunch, according to one workplace authority. “With inflation slowing, companies, particularly Retailers, won’t be able to pass increased labor costs to the consumer as easily. This could lead to more cuts, rather than more added positions, as evidenced by the increase in job cuts in this sector,” said Andrew Challenger, workplace and labor expert and Senior Vice President of global outplacement and executive and business coaching firm Challenger, Gray & Christmas, Inc. Retailers have announced 55,755 job cuts through August, according to the latest Challenger Report. This is up 524% from the 8,940 job cuts announced in the sector through August 2022. Due to the current environment, Challenger predicts Retailers will add 410,000 seasonal positions, the lowest number of jobs added in the final quarter since 2008, according to an analysis of non-seasonally adjusted data from the Bureau of Labor Statistics (BLS) by Challenger. The 2022 holiday hiring season saw Retailers add 509,300 jobs, revised down from 519,400, according to the BLS. That is down 27% from the 701,400 jobs added during the holiday season in 2021, and the lowest since Retailers added 495,800 seasonal positions in 2009. Retail employment has surpassed pre-pandemic levels, but is lower than 2018, when 15,713,500 people were employed in the sector in August. This year, Retail employment in August is 15,530,000, according to preliminary non-seasonally adjusted data from the BLS. Peak employment for the sector in August occurred in 2016, when 15,809,900 workers were employed. The highest employment in Retail recorded in a single month occurred in December 2016, when 16,338,300 workers were employed. Meanwhile, Transportation and Warehousing, which saw its highest employment on record last December with 7,049,500 has fewer workers this August than in the same month in 2022. In August, the BLS reported 6,556,200 workers, down 24,000 jobs from August 2022. So far this season, seasonal hiring announcements are slow to occur. US-based companies have announced just 38,000 seasonal hiring plans so far this year, according to Challenger tracking. By this point in 2022, employers had announced 258,201 seasonal hiring plans, up 36% from the 190,000 seasonal hiring plans announced by the same time in 2021 and down from 301,700 hiring plans companies announced at this point in 2020. 1-800-FLOWERS.COM will hire 8,000 workers for the 2023 holiday season, the same number as last year. Bed, Bath & Beyond plans to hire 30,000 for the holiday season. Kroger announced it would hire “thousands,” but did not specify a number. Job posting sites have ads for seasonal employment for companies such as Crate & Barrel, Macy’s and UPS, but no other employers have announced major hiring plans as they have in past years. Notably, UPS not announced seasonal hiring plans after negotiations with the union led to higher wages for current members and avoided a strike. The transportation company has announced 100,000 new hires for the holidays in each of the last three years. “Seasonal employers have a few issues to grapple with in the coming months. One is the cost of labor limiting desire to add workers. Another is whether consumers continue to spend at the same clip. Another is one that has been fairly constant since the pandemic: can they attract workers?” said Challenger. JOBS ADDED IN RETAIL TRADE October, November, December Oct Nov Dec TOTAL % Change 2005 122,300 392,700 196,600 711,600 0.20% 2006 150,600 427,300 169,000 746,900 5.00% 2007 87,900 465,400 167,600 720,900 -3.50% 2008 38,600 213,600 72,700 324,900 -54.90% 2009 45,100 317,100 133,600 495,800 52.60% 2010 149,800 339,200 158,600 647,600 30.60% 2011 134,200 390,600 154,500 679,300 4.90% 2012 138,700 485,400 99,600 723,700 6.50% 2013 159,600 443,100 184,100 786,800 8.70% 2014 182,800 412,200 154,100 749,100 -4.80% 2015 183,300 399,300 125,700 708,800 -5.38% 2016 149,400 359,400 132,200 641,000 -9.57% 2017 146,400 462,700 59,300 668,400 4.27% 2018 115,900 494,800 14,900 625,600 -6.40% 2019 160,900 431,900 79,500 672,300 7.47% 2020 239,200 356,800 140,300 736,300 9.52% 2021 224,400 348,600 128,400 701,400 -4.74% 2022 143,700 263,200 102,400 509,300 -27.39% Average* 142,933 389,072 126,283 658,317 *Since 2005 JOBS ADDED IN TRANSPORTATION & WAREHOUSING October, November, December Oct Nov Dec TOTAL % Change 2011 11,200 25,900 62,200 99,300 -2.93% 2012 14,000 28,300 103,900 146,200 47.20% 2013 11,300 57,500 96,300 165,100 12.39% 2014 39,100 56,800 135,800 231,700 40.34% 2015 13,900 70,600 144,000 228,500 -1.38% 2016 28,000 85,500 152,800 266,300 16.54% 2017 41,400 88,600 135,200 265,200 -0.41% 2018 52,900 111,200 95,400 259,500 -2.15% 2019 36,300 119,400 139,300 295,000 13.68% 2020 117,900 254,200 121,700 493,800 67.39% 2021 121,600 239,800 190,900 552,300 11.85% 2022 86,800 166,900 122,700 376,400 -31.84% AVERAGE* 47,867 108,725 125,017 281,608 *Since 2011 Source: Challenger, Gray & Christmas, Inc., with non-seasonally adjusted data provided by the U.S. Bureau of Labor Statistics

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Alta Equipment Group Inc. announces pricing of upsized Secondary Offering of Common Stock

Sun, 23 Jul 2023 14:45:20 +0000

Alta Equipment Group Inc. (NYSE: ALTG) (“Alta” or the “Company”), a provider of premium material handling, construction and environmental processing equipment and related services, today announced the pricing of an upsized underwritten secondary offering of 2,200,000 shares of its common stock, par value $0.0001 per share (the “Common Stock”) by an affiliate of B. Riley Financial, Inc. (the “Selling Stockholder”) at a price to the public of $16.25 per share. The underwriters have been granted a 30-day option to purchase up to an additional 330,000 shares of Common Stock from the Selling Stockholder. The offering is expected to close on July 25, 2023, subject to the satisfaction of customary closing conditions. Alta is not offering any shares of Common Stock in this offering and will not receive any proceeds from the sale of shares by the Selling Stockholder and will bear certain costs associated with the sale of such shares, but not underwriting discounts and commissions. D.A. Davidson & Co. and B. Riley Securities are acting as joint book-running managers and representatives of the underwriters for the offering. Northland Capital Markets is serving as a co-manager for the offering. The offering of these securities is being made pursuant to a resale shelf registration statement, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 25, 2020 and initially declared effective on April 3, 2020, as amended by Post-Effective Amendment No. 1, filed with the SEC on July 1, 2021 and declared effective on July 12, 2021. The offering is being made only by means of a prospectus supplement and an accompanying prospectus. A copy of the prospectus and prospectus supplement relating to the offering may be obtained, when available, by visiting the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus and prospectus supplement relating to the offering may be obtained by contacting: D.A. Davidson & Co., Attention: Equity Syndicate, 8 Third Street North, Great Falls, MT 59401, (800) 332-5915, prospectusrequest@dadco.com or B. Riley Securities, Inc., Attention: Prospectus Department, 1300 17th Street North, Suite 1300, Arlington, Virginia 22209, Phone: (703) 312-9580, Email: prospectuses@brileyfin.com.

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FMI Analysis: Warehouse racking market expected to scope US$ 10,839.2 million by 2033

Tue, 09 May 2023 16:19:30 +0000

As per a recent market analysis by Future Market Insights (FMI), the global warehouse racking market is expected to capture a 3.8% CAGR from 2023 to 2033. The market is likely to increase from US$ 7,464.9 million in 2023 to US$ 10,839.2 million by 2033. The global logistics industry comprises a wide range of freight and cargo-related transportation sectors. The integration of material handling, warehousing, packaging, transportation, inventory management, supply chain management, procurement, and shipping security are expected to drive sales of warehouse racking market. Furthermore, the need for flexible material storing and stacking architectures with new safety features and resource efficiency is a vital factor spurring demand for industrial racking systems. In addition to this, the ex; expansion of the e-Commerce sector is also fuelling the growth in the market. Different solutions are being presented as technology advances to make operations easier. With cutting-edge approaches and effective solutions, smart storage ideas are gaining traction. With the correct kind of training in automated solutions, a warehouse management system may be considerably more effective, empowering employees to be more productive even when working at a high intensity. Upgrading, modifying, or relocating storage systems following changing business needs is another significant consideration. This is compelling manufacturers to employ racking systems, such as drive-in pallet racks and structural selective pallet racks, thereby augmenting the growth in the market. “Growing need for quick product accessibility, maximum space utilization, product and worker safety, convenient workability, and overall performance enhancement is expected to drive the market. Furthermore, the availability of both manual and automatic rack servicing is expected to boost sales in the forthcoming years,” says the FMI analyst. Growing Demand for Warehouse Space Optimization Global trade volumes are increasing at an unprecedented rate as a result of improved trade connections via roads, trains, and airways. This is rising the demand for customized products and favorable trade agreements. The Trade and Transportation Corridor Initiative, for example, is expected to invest roughly US$ 2,000 million over the next decade. To improve Canada’s transportation efficiency and effectiveness. Many manufacturing companies do not own warehouses and instead prefer to use third-party logistics providers to keep their goods. This saves money and allows them to focus on the quality of their products and services. As a result, warehouses must optimize their space to accommodate more goods. Most warehouse racks manufacturers also offer consulting services to help with warehouse management. The Key Driver of Market Growth is Rising Demand for Retail Space Growing retail space globally is expected to boost the global storage rack market over the forecast period. The worldwide retail market is expanding as a result of robust economic expansion and urbanization. E-commerce is quickly becoming a popular way for customers to buy consumer products, resulting in a high need for warehousing. This is projected to help the highlighted market grow during the forecast period. Furthermore, shopping convenience is one of the numerous aspects driving consumer interest in online channels. Furthermore, supermarkets, hypermarkets, and convenience stores have traditionally been the primary sales channels for consumer goods. Traditional retail establishments sell a variety of brands offered by vendors. Allowing customers to readily select the best brands available. Vendors’ rising emphasis on raising retail sales and retailer expansion fuel demand for warehouse racking, accelerating the market’s growth pace throughout the forecast period. A Glimpse of Country-wise Insights Does the Expansion of the Food and Beverage Sector Boost the Market in the United States? Manufacturers in the United States use Warehouse Shelving to Improve Inventory Management The market in the United States is predicted to increase at a 13.4% CAGR during the forecast period, according to FMI. The food and beverage business is vital to the country’s economy. According to the USA Committee for Economic Development, the industry employs over 1.5 million people and includes nearly 27,000 enterprises. As a result, growth in the food and beverage sector, as well as increased export and retail of organic food items, drive sales in the United States over the forecast period. What Indian Storage Rack Market is expected to Grow? Increased Acceptance of Warehouse Racking Systems in India Drives Growth The rapid expansion of India’s e-commerce industry is boosting market growth. With sales expected to expand at a 7.2% CAGR over the assessment period. In India, the shift from traditional brick-and-mortar storefronts to online retail platforms is increasing. This is driving the demand for effective storage solutions and sales of warehouse racking equipment. The Automotive Sector Drive the Market in the United Kingdom? Automakers Invest in Warehouse Shelving Units to Improve Supply Chain Management The warehouse racking market in the United Kingdom is expected to register a 3.0% CAGR over the forecast period, according to FMI. In the automotive industry, warehouse racking systems are utilized to store various automotive spare parts and automobiles. Increased motor vehicle sales in the United Kingdom are driving manufacturers. To implement industrial shelving systems to maximize storage area utilization. With these elements behind it, the United Kingdom market is expected to rise rapidly in the future years. Competitive Landscape Daifuku, SsiSchaefer, Interroll, Dematic, Vanderlande, AK Material Handling Systems, Beumer, Constructor, Dmw&H, Godrej Storage Solutions, Warehouse Rack & Shelf LLC., and Steel King Industries, Inc. among others are some players in the warehouse racking market are employing smart promotional strategies, advertisements, and new product launches to gain a competitive edge in the market.

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2023 Economic Outlook forecasts 4.2% expansion in Equipment and Software Investment and 0.9% GDP growth next year amid mild U.S. Recession

Thu, 15 Dec 2022 15:20:59 +0000

In what is likely to be a more challenging year for both the economy and the equipment finance industry, the 2023 forecast for equipment and software investment growth is 4.2%, according to the 2023 Equipment Leasing & Finance U.S. Economic Outlook. The report released today by the Equipment Leasing & Finance Foundation also forecasts sluggish U.S. GDP growth of 0.9% (annualized) due to a mild recession that is expected to begin midway through the year. The Foundation’s report is focused on the $1.16 trillion equipment leasing and finance industry and highlights key trends in equipment investment, placing them in the context of the broader U.S. economic climate. Nancy Pistorio, Foundation Chair and President of Madison Capital LLC, said, “Equipment investment, the lifeblood of the equipment finance industry, has maintained steady growth since the onset of the pandemic. Despite higher interest rates, inflation, and expectations of a downturn in 2023, the report indicates that a ‘soft landing’ in which the economy avoids recession is still possible. In addition, there are several factors that may make the looming downturn less severe for our industry than previous recessions, including pro-industrial legislation, equipment order backlogs, and reshoring trends.” Highlights from the 2023 Outlook include: Equipment and software investment growth boomed in the second half of 2022 with nearly 12% annualized growth in Q3, providing a solid jumping-off point for 2023. However, rising interest rates are expected to weigh on investment growth next year. The U.S. economy also saw GDP growth bounce back during the second half of 2022, although underlying conditions remain troubling. The housing market is struggling, financial markets are highly volatile, and the global economy is slowing. The manufacturing sector continues to outperform expectations given rising interest rates and the global economic slowdown. Although activity appears likely to slow in 2023 given expectations for a recession, recent pro-industrial legislation and a push for supply chain re-shoring should give the manufacturing sector a boost. For Main Street businesses, the combined effects of high inflation and tightening financial conditions are likely to contribute to turbulent operating conditions in 2023. Fortunately, financial stress is still quite low, and small business lending activity remains positive for now. Monetary policy is among the biggest questions facing the equipment finance industry in 2023. The Fed has hinted at the possibility of slowing down interest rate hikes while stressing it is committed to reining in inflation at the risk of higher unemployment or a recession. Interest rate levels are expected to rise above 5% next year, and potentially higher. The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is released in conjunction with the Economic Outlook, tracks 12 equipment and software investment verticals. In addition, the Momentum Monitor Sector Matrix provides a customized data visualization of the current values of each of the 12 verticals based on recent momentum and historical strength. This month one vertical is expanding, six are peaking, two are recovering, and three are weakening. Over the next three to six months, year over year: Agriculture machinery investment growth is likely to sidewind. Construction machinery investment growth is likely to ease. Materials handling equipment investment growth may improve slightly. All other industrial equipment investment growth may continue to decelerate. Medical equipment investment growth will likely sidewind. Mining and oilfield machinery investment growth may decelerate. Aircraft investment growth may continue to pick up. Ships and boats investment growth are unlikely to accelerate. Railroad equipment investment growth may have peaked and could decelerate. Trucks investment growth is unlikely to improve. Computers investment growth is unlikely to accelerate further. Software investment growth is unlikely to improve. Download the full report at https://www.leasefoundation.org/industry-resources/u-s-economic-outlook/.

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First Financial Equipment Leasing expands operations in Canada following acquisition of NorFund Capital

Thu, 08 Dec 2022 22:58:40 +0000

First Financial Equipment Leasing (FFEL), a provider of equipment financing solutions and a member company of JA Mitsui Leasing Ltd (JAML), announces a strategic expansion into Canada with the acquisition of NorFund Capital. Based in Toronto, Canada, NorFund Capital is an independent leasing company specializing in capital equipment, solar and alternative energy, and vendor finance programs. The acquisition continues First Financial Equipment Leasing’s tremendous growth trajectory, driven by its vision to elevate and broaden solutions offered to its global customers. “NorFund Capital’s expertise and creativity within the Canadian market made it the ideal fit to lead our growth in new markets and industries,” said Tom Slevin, FFEL Co-Founder and CEO. “With Canada becoming a significant part of our North American platform, this acquisition provides key opportunities for us to extend our financing solutions and enhance the customer experience throughout our global client base.” “We are excited to join First Financial Equipment Leasing and the JA Mitsui Leasing Ltd. family of companies,” said Robert MacFarlane, President and Founder NorFund Capital. “Our organizations have a shared passion for building innovative financing solutions with a customer-focus approach. Given the complementary nature of our combined businesses, we look forward to a strengthened global platform with expanded investment opportunities.” MacFarlane will lead the newly named First Financial Canadian Leasing as Senior Vice President, overseeing the Canadian sales strategies and business development. He will focus on growing the company’s fair market value (FMV) leases and establishing First Financial Canadian Leasing as a market leader in renewable energy financing in Canada. MacFarlane has over 30 years of experience in the leasing industry and has built and managed several highly successful equipment finance companies. First Financial Equipment Leasing was represented by Cassels Brock & Blackwell LLP on the transaction.

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UgoWork secures $22.8M to scale connected Energy as a Service solutions for industrial vehicles

Tue, 22 Nov 2022 23:56:52 +0000

UgoWork™, a provider of flexible Energy as a Service (EaaS) solutions for industrial vehicles, announced the closing of its all-equity $22.8M Series B financing. This round was led by Fonds de solidarité FTQ, with participation from Export Development Canada (EDC), and existing UgoWork investors Desjardins Capital and Investissement Québec. Proceeds from series B will be used to accelerate the development efforts of its software and artificial intelligence platform, enabling the Energy as a Service program for its lithium-ion battery lineup. It will also be used to grow sales, and expand its distribution footprint to meet fast-growing international demand. In an unprecedented global context whereby supply chains, labor shortage, and energy efficiency are top concerns, industrial fleet operators are continuously looking for innovative solutions to navigate this new reality. UgoWork’s cutting-edge battery technology and connected platform empower operators to make data-driven decisions to increase output, optimize resources, and take a step towards a zero-carbon footprint. Its Energy as a Service subscription model reduces upfront costs for faster deployment and enables customers with access to the latest technology, connected platform, and best-in-class support and updates. “We warmly thank both our existing and new partners who understand that we are a pioneer in the electrification of industrial vehicles,” said Philippe Beauchamp, UgoWork’s CEO. “We have ambitious goals and aggressive targets to expand internationally with major Fortune 500 customers. Already, we have set high expectations in the market thanks to the performance, innovation, and unprecedented business value our solutions offer. We are delighted to have new partners to support us in the next stage of our growth and we are thrilled to create many high-quality jobs in the process.” “UgoWork’s innovative solutions perfectly fit into the concept of a circular economy. This is one of the reasons why we are very proud to continue our support for this company,” says Marie-Hélène Nolet, Chief Operating Officer of Desjardins Capital. Its founders were pioneers in 2015 by developing a unique technology and business model that has proven to be successful. The demand for UgoWork’s solution is growing rapidly and we are confident that the team in place will be able to achieve the growth that will allow them to take a leading position in the market.” ’’UgoWork stood out for us by its leadership, its desire to innovate, and its international reputation. The development of their artificial intelligence and their latest technological advances impressed us. The Fonds believes in UgoWork and will always be there to support and advise the Quebec City-based company in its next steps of growth, regarding both technology and exports’’, said Philippe P. Huneault, Vice-President, Private Equity and Impact Investing – Technology and Fund Management, and Chief International Business Development Officer at the Fonds de solidarité FTQ. This is Investissement Québec’s second round of all equity funding with UgoWork, a testament to the tremendous market opportunity in the company’s solutions and the confidence the portfolio holders have for its future. “We are proud to reiterate our support in UgoWork in order to enable it to continue developing its expertise and to propel its growth. UgoWork solutions help support our companies in their efforts to reduce their environmental footprints and promote our energy transition. Investissement Québec embraces its role in helping Québec to become a leader in the green economy, and this intervention ideally serves that purpose” says Guy LeBlanc, President and CEO of Investissement Québec.

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Industry prepares for continued rate hikes as wholesale trade adds 15,000 jobs in October and inflation shows tepid signs of deceleration

Mon, 07 Nov 2022 19:50:55 +0000

An economic slowdown is likely in the next 6 to 12 months with the onset of regular rate hikes. The industry encourages the federal government to avoid enacting policies that may increase the likelihood of a global recession The National Association of Wholesaler-Distributors (NAW), which is the voice of the 7.4 trillion-dollar wholesale distribution industry, and employs more than 5 million U.S. workers, reacted to the newly released October jobs report; cautioning the federal government to refrain from aggressive economic overcorrection and reckless spending that will fuel ongoing economic uncertainty. According to the Bureau of Labor Statistics, the US economy added 261,000 jobs in October, as unemployment inched up to 3.7% and Wholesale Trade added 15,000 jobs. Additionally, employment in wholesale trade increased by an average of 17,000 per month thus far in 2022, compared with 13,000 per month in 2021. “Today’s jobs report shows that six consecutive rate increases from the Federal Reserve have barely had an impact on the labor market,” said NAW CEO Eric Hoplin. “Combined with the rate increase announced on Wednesday, these numbers indicate that our economy has not slowed down enough to counter record-breaking levels of inflation. Additionally, increased rate hikes increase the likelihood of a recession as industries pull back in anticipation of economic unrest. NAW will continue to monitor the economic situation for our members and for the wholesale distribution industry. Once again, we urge the federal government to avoid unnecessary spending that will continue to fuel economic hardship in this country,” concluded NAW CEO Eric Hoplin.

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NRF predicts healthy holiday sales as consumers navigate economic headwinds

Thu, 03 Nov 2022 20:52:51 +0000

Holiday spending is expected to be healthy even with recent inflationary challenges, as the National Retail Federation today forecast that holiday retail sales during November and December will grow between 6% and 8% over 2021 to between $942.6 billion and $960.4 billion. Last year’s holiday sales grew 13.5% over 2020 and totaled $889.3 billion, shattering previous records. Holiday retail sales have averaged an increase of 4.9% over the past 10 years, with pandemic spending in recent years accounting for considerable gains. “While consumers are feeling the pressure of inflation and higher prices, and while there is continued stratification with consumer spending and behavior among households at different income levels, consumers remain resilient and continue to engage in commerce,” NRF President and CEO Matthew Shay said. “In the face of these challenges, many households will supplement spending with savings and credit to provide a cushion and result in a positive holiday season.” NRF expects that online and other non-store sales, which are included in the total, to increase between 10% and 12% to between $262.8 billion and $267.6 billion. This figure is up from $238.9 billion last year, which saw extraordinary growth in digital channels as consumers turned to online shopping to meet their holiday needs during the pandemic. While eCommerce will remain important, households are also expected to shift back to in-store shopping and a more traditional holiday shopping experience. “This holiday season cycle is anything but typical,” NRF Chief Economist Jack Kleinhenz said. “NRF’s holiday forecast takes a number of factors into consideration, but the overall outlook is generally positive as consumer fundamentals continue to support economic activity. Despite record levels of inflation, rising interest rates, and low levels of confidence, consumers have been steadfast in their spending and remain in the driver’s seat.” “The holiday shopping season kicked off earlier this year – a growing trend in recent years – as shoppers are concerned about inflation and availability of products,” Kleinhenz said. “Retailers are responding to that demand, as we saw several major scheduled buying events in October. While this may result in some sales being pulled forward, we expect to see continued deals and promotions throughout the remaining months.” Kleinhenz’ comments mirror NRF’s consumer data, which shows that consumers have been kicking off their holiday shopping early over the last decade in order to spread out their budgets and avoid the stress of holiday shopping. This year, given concerns around inflation, 46% of holiday shoppers said they planned to browse or buy before November, according to NRF’s annual survey conducted by Prosper Insights & Analytics. Still, consumers plan to spend $832.84 on average on gifts and holiday items such as decorations and food, in line with the average for the last 10 years. NRF expects retailers will hire between 450,000 and 600,000 seasonal workers. That compares with 669,800* seasonal hires in 2021. Some of this hiring may have been pulled into October as many retailers are eager to supplement their workforces to meet increased consumer demand. While retailers face a multitude of challenges, one is totally out of their hands. Weather, as always, plays a role in holiday retail sales. The National Oceanic and Atmospheric Administration is forecasting warmer-than-average temperatures for the Southwest, Gulf Coast, and Eastern Seaboard, which cover a large swath of the U.S. population, but wetter and snowier conditions are expected for parts of the northern tier. NRF’s holiday forecast is in line with the organization’s full-year forecast for retail sales, which predicted retail sales will grow between 6% and 8% to more than $4.86 trillion in 2022. NRF’s holiday forecast is based on economic modeling that considers a variety of indicators including employment, wages, consumer confidence, disposable income, consumer credit, previous retail sales, and weather. NRF’s calculation excludes automobile dealers, gasoline stations, and restaurants to focus on core retail. NRF defines the holiday season as November 1 through December 31. *The methodology used to calculate holiday retail employment in 2020 was changed to accommodate the sizeable impact of COVID-19 on overall industry employment. In 2021, NRF returned to a traditional employment buildup method. Additional holiday information is available on NRF’s Winter Holidays web page.

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Federal Reserve Board raises interest rates for the sixth time this year as inflation soars

Wed, 02 Nov 2022 19:49:39 +0000

NAW urges the government to rein in out-of-control spending The National Association of Wholesaler-Distributors (NAW), which is the voice of the 7.4 trillion-dollar wholesale distribution industry, and employs more than 5 million US workers, issued the following statement today in response to the Federal Reserve’s announcement that it is once again raising interest rates by 75 basis points to curb inflation. “Unprecedented spending by the federal government has set us on a path of economic uncertainty,” said NAW CEO, Eric Hoplin. “The Federal Reserve Board has raised interest rates for the sixth consecutive time this year, which may lead to an overcorrection that will send the US economy tumbling into a complicated recession. Wholesaler-distributors and their employees are being hit with rising food and energy prices, potential labor strikes, workforce shortages, supply chain challenges, and increased costs. As consumer demand outpaces supply, and our industry works to fully recover from the global pandemic, NAW urges federal lawmakers to rein in out-of-control spending and avoid any potential legislation that will only make matters worse. Americans are having to tighten their finances and cut back on unnecessary spending during these difficult economic times. Perhaps Washington should take note and do the same,” concluded NAW CEO Eric Hoplin. NAW is one of America’s leading trade associations, representing the $7.4 trillion wholesale distribution industry. Founded in 1946, NAW is comprised of national, regional, and state employers of all sizes, industry trade associations, partners, and stakeholders spanning all sectors of distribution. Our industry employs more than 5 million workers throughout the United States and accounts for 1/3 of the U.S. GDP. There are 35,000 wholesale distribution companies that operate nearly 150,000 places of business across North America, including all 50 states. NAW’s mission is to deliver world-class programs and services, designed to help the most dynamic companies in wholesale distribution succeed. Our programming is tailored for the CEOs, senior executives, and rising leaders at our member companies and associations. Members engage with NAW through our offerings in Thought Leadership, Networking, Executive Education, Benchmarking/Research, and Shared Resourcing. Partnerships, Government Relations, and Public Affairs.

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Pricing of CNH Industrial Capital LLC $400 million notes

Thu, 06 Oct 2022 20:33:01 +0000

CNH Industrial N.V. (NYSE: CNHI / MI: CNHI) today announced that its wholly-owned subsidiary, CNH Industrial Capital LLC, has priced $400 million in aggregate principal amount of 5.450% notes due 2025, with an issue price of 99.349%. The offering is expected to close on October 14, 2022, subject to the satisfaction of customary closing conditions. CNH Industrial Capital LLC intends to add the net proceeds from the offering to its general funds and use them for working capital and other general corporate purposes, including, among other things, the purchase of receivables or other assets in the ordinary course of business. The net proceeds may also be applied to repay CNH Industrial Capital LLC’s indebtedness as it becomes due. The notes, which are senior unsecured obligations of CNH Industrial Capital LLC, will pay interest semi-annually on April 14 and October 14 of each year, beginning on April 14, 2023, and will be guaranteed by CNH Industrial Capital America LLC and New Holland Credit Company, LLC, each a wholly owned subsidiary of CNH Industrial Capital LLC. The notes will mature on October 14, 2025. BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are acting as joint book-running managers and the representatives of the underwriters for the offering, and BNP Paribas Securities Corp., CIBC World Markets Corp. and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. The offering is being made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission on March 14, 2022. Copies of the prospectus supplement and the accompanying prospectus for the offering may be obtained by contacting BofA Securities, Inc., Attn: Prospectus Department, 200 North College Street, NC1-004-03-43, Charlotte, NC 28255-0001, Telephone: 1-800-294-1322, Email: dg.prospectus_requests@bofa.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, Attn: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: 1-866-803-9204; Morgan Stanley & Co. LLC, 180 Varick Street, New York, NY 10014, Attn: Prospectus Department, Telephone: 1-866-718-1649, Email: prospectus@morganstanley.com; or RBC Capital Markets, LLC, Attn: Syndicate Operations, 200 Vesey Street, 8th Floor, New York, NY 10281, Telephone: 1-866-375-6829, Email: rbcnyfixedincomeprospectus@rbccm.com. Copies of the prospectus supplement and the accompanying prospectus for the offering are also available on the website of the U.S. Securities and Exchange Commission at http://www.sec.gov.

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Federal Reserve Board raises interest rates as inflation soars

Wed, 21 Sep 2022 21:05:32 +0000

The National Association of Wholesaler-Distributors (NAW), which is the voice of the 7.4 trillion-dollar wholesale distribution industry, which employs more than 5 million US workers, issued the following statement today in response to the Federal Reserve Board’s announcement that it is once again raising interest rates by 75 basis points to curb inflation. “The Federal Reserve Board is raising interest rates once again to combat rising inflation caused by increased government spending. Despite previous rate increases by the Fed this year, inflation was still 8.3% in August. Misguided laws such as the Inflation Reduction Act will actually increase inflation through 2024. Hardworking American families and businesses feel the pinch, and many are reaching their breaking point as their reserves dry up, access to credit and credit products diminishes, interest rates skyrocket, the housing marketing slows, and the government continues to irresponsibly spend taxpayer dollars. The increase in feckless government spending is raising rates and driving up inflation while sending the country into a recession, an energy crisis, and financial insecurity for everyday Americans – all with no accountability and no end in sight. Every day our government expects Americans to live responsibly, pay their bills, balance their checkbooks, and trust our leaders to do what is best. But those government leaders are progressively more about ‘spending and spinning,’ less about substance and stability,” concluded NAW CEO Eric Hoplin. NAW is one of America’s leading trade associations, representing the $7.4 trillion wholesale- distribution industry. Founded in 1946, NAW is comprised of national, regional, and state employers of all sizes, industry trade associations, partners, and stakeholders spanning all sectors of distribution. Our industry employs more than 5 million workers throughout the United States and accounts for 1/3 of the U.S. GDP. There are 35,000 wholesale distribution companies that operate nearly 150,000 places of business across North America, including all 50 states. NAW’s mission is to deliver world-class programs and services, designed to help the most dynamic companies in wholesale distribution succeed. Our programming is tailored for the CEOs, senior executives, and rising leaders at our member companies and associations. Members engage with NAW through our offerings in Thought Leadership, Networking, Executive Education, Benchmarking/Research, Shared Resourcing. Partnerships, Government Relations, and Public Affairs.

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Risk Assessment

Wed, 20 Jul 2022 05:00:31 +0000

As you well know there are quite a few issues facing dealers for the balance of 2022 and into 2023. We have Inflation with many factors pointing to Stagflation. We have interest rate risk (which is scary). We have credit risk from your OEM down to your customer level. We have increased transportation costs. We have pending EV interest and requirements. We have consolidation on many equipment fronts. We have staffing problems. We have supply chain problems. We have the retail sector stuck with bloated inventories. You can add a few more. On the positive side a recent BDO newsletter I received states that industrial real estate is staged to almost double the volume of five years ago. With many companies needing to put products closer to customers and the trend to produce more products in the US, lift truck dealers have a tremendous opportunity to add market share. Sounds good so far, but there is no free lunch because owners of these properties plan to become digitally aware looking to digitally connect systems to work together and deliver more productivity. Sounds great as long as you can participate in this digital process. If you cannot, do not expect to be at the top of the list when they need equipment. ( I suggest you sign up for those BDO emails because they contain a lot of practical material). The next item on the list will require a strong balance sheet along with meaningful EBITDA. A year ago, you have a Fed Fund Rate of about “0” to which the bank adds, let us say, 2.5% to 3.0%. as your rate to receive working capital and Cap-X loans. When you think about this your costs are increasing, and vendors who experience a similar fate will be passing on their higher interest costs to you as well. A lose-lose situation because the reality of this situation is you incur higher interest costs without a source of revenue to offset them. You obviously will have to increase margins to cover this higher rate, but it may take a year to catch up to the cost increase, with the higher interest passed on by vendors making it even tougher to catch up. For example, you now have a 2.5% loan. With the Fed rate changes, the base rate is now 2.5% (and will probably go higher) to which you add on the bank rate of 2.5%, with the new rate being 5%. That’s a 100% increase! To see the impact of these changes, take a look at your 2021 annual financials to see what your interest cost was. Now double it to compile what your new annual interest dollars will be.YIKES. Where is cash coming from to cover this expense? Where you find yourself after these higher rates are executed is in front of your banker who says, “ Looks like you missed your covenants, and we will have to see what needs to be done to correct the situation.” I hate to pile on like this but ’22 is the year of the new lease accounting rules which will add lease debt to your balance sheet which could create additional covenant problems. All the more reason to take a HARD look at your balance sheet now to give you time to prepare your defense when the loan renewal comes up. Dealers with unit inventory and a rental fleet might see debt covenants as follows. Debt/Equity. Debt/EBITDA-Cap X. EBITDA/ Interest. EBITDA / Total Debt Service. I am sure that a lot of you are familiar with these calculations. Hopefully, you have examples of how the bank calculates these results. If you do not have those examples, get them, and keep them handy. Since EBITDA shows up in more of these covenant calculations make sure you have an outline for adjustments to make to the EBITDA. For example, one-time charges and personal expenditures could be used to adjust the EBITDA to a higher positive result. It will pay to study how you are accounting for revenues and expenses to insure you have the right figures in the right period. And remember the “I” in EBITDA stands for interest. Make sure you are using the correct amounts for interest expenses. Obviously, the lease debt will increase the debt amount on the balance sheet resulting in a material adjustment if you lease a lot of equipment or have long-term contracts (not equipment related). Bankers have been saying that you do not have to worry about the lease debt, as long as you are in good standing with the bank. Get a bit out of sync and you may find that suddenly the lease debt is more important than anticipated. One last point. Your customers and vendors will find themselves also having problems with increasing rates. So now is the time to see how the financials of your slow players look. These rates are sure to generate a lot of Zombies (Wall St. term for a company not able to make their next bank note payments) who borrowed too much because the rates were low. Thus, the question becomes “How many Zombies are in your AR schedule?” Is not owning a lift truck dealer fun? Most times yes. For the next eight months probably not. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.

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LiuGong North America reveals LiuGong Finance

Mon, 25 Apr 2022 22:35:03 +0000

LiuGong North America has announced a new private label program to become a one-stop-shop for equipment and financing. The new LiuGong Finance program will serve customers and dealers with a multitude of benefits. “As we continue to help support, grow and develop our customers and dealer network, we’re delighted to introduce LiuGong Finance,” said LiuGong North America President Andrew Ryan. We’ve built the LiuGong Finance program to include several components that will benefit our customer and dealer network and their businesses.” LiuGong Finance will provide dealers with finance support for both LiuGong North America and non-competing products. Additionally, it will enable dealers to utilize competitive rates and flexible finance structures under a captive finance program. This helps to differentiate LiuGong from its competitors and creates customer loyalty that can lead to future sales. Dealers and end-users will have access to a dedicated finance team. LiuGong Finance offers both retail financing and dealer-owned rental fleet financing under the program. There are three types of retail financing included: FMV lease, equipment loan, and custom structures. There are two types of dealer-owned rental fleet financing offered: rental equipment loans and custom structures.

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Equipment Finance Industry confidence eases again in March

Sat, 09 Apr 2022 23:42:17 +0000

The Equipment Leasing & Finance Foundation (the Foundation) has released the March 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 58.2, easing from the February index of 61.8. When asked about the outlook for the future, MCI-EFI survey respondent Michael Romanowski, President, Farm Credit Leasing, said, “Supply chain issues continue to hamper equipment availability. The Ukraine conflict has enhanced volatility and is contributing to an already unsettled environment. We continue to work closely with our partners and customers to ensure we are advancing our mission in these uncertain times.” March 2022 Survey Results: The overall MCI-EFI is 58.2, easing from the February index of 61.8. • When asked to assess their business conditions over the next four months, 21.4% of executives responding said they believe business conditions will improve over the next four months, a decrease from 24.1% in February. 50% believe business conditions will remain the same over the next four months, down from 69% the previous month. 28.6% believe business conditions will worsen, an increase from 6.9% in February. • 25% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 24.1% in February. 75% believe demand will “remain the same” during the same four-month time period, an increase from 72.4% the previous month. None believe demand will decline, down from 3.5% in February. • 21.4% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 17.2% in February. 78.6% of executives indicate they expect the “same” access to capital to fund business, a decrease from 82.8% last month. None expect “less” access to capital, unchanged from the previous month. • When asked, 46.4% of the executives report they expect to hire more employees over the next four months, up from 44.8% in February. 50% expect no change in headcount over the next four months, a decrease from 55.2% last month. 3.6% expect to hire fewer employees, up from none in February. • 3.6% of the leadership evaluate the current U.S. economy as “excellent,” a decrease from 10.3% the previous month. 85.7% of the leadership evaluate the current U.S. economy as “fair,” down from 86.2% in February. 10.7% evaluate it as “poor,” an increase from 3.5% last month. • 7.1% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 24.1% in February. 57.1% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 58.6% last month. 35.7% believe economic conditions in the U.S. will worsen over the next six months, an increase from 17.2% the previous month. • In March 42.9% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 44.8% the previous month. 57.1% believe there will be “no change” in business development spending, up from 51.7% in February. None believe there will be a decrease in spending, down from 3.5% last month. March 2021 MCI-EFI Survey Comments from Industry Executive Leadership: Bank, Middle Ticket “While equity markets, crude, supply chain and global industry trade have all been greatly impacted by the Russian invasion of Ukraine, it is the suffering and loss of life that is most disturbing. I am proud of Key’s immediate humanitarian efforts on behalf of the Ukrainian people.” Adam Warner, President, Key Equipment Finance Independent, Small Ticket “Through 2021, often businesses used their federal government stimulus money to purchase capital equipment and services. The deeper we get into 2022, increasingly, these businesses will return to financing their capital equipment purchases.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC

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ARA forecast for equipment rental revenue growth continues to rise

Wed, 23 Feb 2022 12:53:52 +0000

The latest updated quarterly American Rental Association (ARA) forecast for equipment rental revenue now calls for a 10.2 percent increase in 2022 to reach $52.7 billion in the United States, a slight increase from the previous forecast in October 2021, reflecting the positive influence of expected increases in infrastructure spending. The revenue forecast also calls for equipment rental, which includes construction, industrial and general tool revenue, to increase by 6 percent in 2023, 2.9 percent in 2024, and 3.4 percent in 2025 to reach $59.5 billion. Scott Hazelton, director, economics and country risk, IHS Markit, Andover, Mass., the company that provides data and analysis for the ARA Rentalytics forecasting service, says the continued strong forecast for growth corresponds with the optimism within the industry. “This is a market that will surpass the peak revenue levels of 2019. That means the impact of the coronavirus (COVID-19) on equipment rental revenue will be unwound by the end of the year,” Hazelton says. Construction and industrial equipment rental revenue is expected to lead the way with a 12 percent increase in 2022 to $38.9 billion while general tool is expected to grow by 5 percent to reach $13.9 billion this year. The largest uncertainty facing the industry that could impact the U.S. forecast is the current rate of inflation, which was recently reported to be 7.5 percent, year over year. “It is clear that supply chains have a lot to do with the current inflation rate and unwinding the current backlogs will increase the supply of goods and bring prices back down,” says John McClelland, Ph.D., ARA vice president for government affairs and chief economist. “However, if it takes too long to unwind the supply chain bottlenecks, inflation can get backed into things like wages and cause the Federal Reserve to act more aggressively, slowing economic growth, which could have negative effects on the equipment and event rental industry,” McClelland says. Although supply chain issues have caused delays in delivery of fleet to equipment rental companies, the ARA forecast projects a 36.7 percent increase in investment in inventory to reach $14.4 billion in 2022, exceeding the previous annual high of nearly $13.8 billion spent in 2019. The forecast calls for another investment increase of 10.1 percent in 2023 to reach nearly $15.9 billion. The ARA forecast for equipment rental revenue in Canada mirrors the positive expectations of the United States, calling for 5.5 percent growth in 2022 to reach nearly $4.4 billion followed by growth of 5.7 percent in 2023, 3.5 percent in 2024, and 1.8 percent in 2025 to reach nearly $4.9 billion

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Micropsi raises $30M Series B Funding to Scale Industrial Automation with Human Motion Trained Robots

Thu, 10 Feb 2022 22:48:53 +0000

Micropsi Industries secures a $30M Series B for its deep tech AI software for controlling and training industrial robots MIRAI robot control system enables hand-eye-coordinated actions for automation of tasks that improve productivity in industrial environments The Series B funding is co-led by Metaplanet, VSquared, and Ahren Innovation Capital as Micropsi is ready to scale in the US and Europe Micropsi Industries has just announced the successful closing of its $30 million Series B funding round. The company provides ready-to-use AI systems for controlling industrial robots to enable the automation of manufacturing processes that so far could not be automated. By using cameras and sensors to react in real-time to dynamic conditions in a workspace, Micropsi-powered robots can be trained by humans to perform hand-eye-coordinated actions in industrial environments. MIRAI is successfully deployed in assembly, material handling, and quality control applications in a wide range of industries. Companies like Siemens Energy; ZF Group, one of the largest automotive suppliers in the world, and BSH, the largest manufacturer of home appliances in Europe, are already using MIRAI in their production halls. New investors Metaplanet, VSquared, and Ahren Innovation Capital co-led the funding round. Existing investors Project A Ventures and M Ventures also participated. MIRAI’s “Different Approach” does what others only promise “Our technology makes it easy to transfer dynamic motion know-how from humans to robots,” said Ronnie Vuine, CEO and co-founder of Micropsi. “We have not optimized the textbook approach for specific applications but took a radically different approach inspired by how humans coordinate motions. MIRAI is a proven and independent technology that’s working 24/7 in the factories of our customers. That is what convinced our investors: Here is a company that can already verifiably do what many current startups only promise to develop.” Industrial robots can compensate for labor shortages and secure supply chains. The manufacturing skills gap in the U.S for example could result in 2.1 million unfilled jobs by 2030. Before factories can put robots into service, however, a lot of preparatory work is necessary, with specialists developing software code line by line to trigger the individual movements of the machines. This is complex, expensive, and makes robots inflexible, as variance in positions or materials throws the robots off. Micropsi’s MIRAI changes this. Using artificial intelligence (AI), workers are able to train the machines through demonstration. A human guides the robot arm through the work task, which then learns and carries out the movements autonomously. In doing so, it is able to handle variance and changes in the environment and the robot’s target at execution time. This expands the commercial potential of industrial robots, as it allows them to handle complexity and keeps them flexible even as conditions change. MIRAI augments industrial robots. Once configured with MIRAI, a robot arm can perceive its workspace through cameras and continuously adjust its movements as it performs a task. MIRAI skills are not programs, they have collected intuitions of human movement that MIRAI then intelligently transfers to robots. New funding plans: Expanding operations The new funding is going to be used to expand operations in the US, ramp up sales efforts and expand to more robot platforms. Micropsi Industries has recently hired robotics expert Prof. Dominik Bösl as managing director to be in charge of the company’s ambitious technology roadmap. Prof. Bösl previously held positions at Festo, Kuka, and Microsoft. Rauno Miljand, the managing partner at Metaplanet, says: “Intelligent robot automation could tap into a currently locked productivity pool. The end-to-end learning solution built by Micropsi is one of the most advanced systems in the market and is well-positioned to unlock potential in a wide array of industrial settings. The ease of use and the fast learning cycle make it one of the most scalable platforms in the industry.”

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