About Leasing
The Equipment Leasing Association conducted a study to measure the value and importance of the equipment leasing industry on the U.S. economy. Key results of the study show that the equipment leasing industry:
- Produced $227 billion additional real equipment investment.
- Created between 3 million and 5 million additional jobs.
The study also showed that economic value extends beyond jobs because the incomes of labor and business proprietors were affected as well. The leasing industry accounts for roughly $375 billion of real personal income annually.
The study implied that the most important contribution of the equipment leasing industry lies in providing access to capital. It found that when leasing is unavailable, the demand for equipment is curtailed, which impacts other industries everywhere along the equipment supply chain. The contribution of leasing is so critical and so valuable to the economy because:
- Leasing cuts across goods-producing and services-producing industries in the U.S. economy.
- Leasing is a crucial approach to acquiring a variety of equipment types, especially high technology equipment, which is so vital to innovation and growth.
- Leasing arrangements are used by all sizes of businesses, even though their capital requirements may differ.
It was also noted that several subsidiary benefits extend to the economy as well. With leasing there is greater access to capital, which permits greater entry into markets. By expanding the pool of market participants, the markets are potentially more competitive. Increasing the market for capital goods at the margin facilitates greater growth in new capital goods production and investment.