Average Marketing Budgets of Asset Finance Companies to Rise By 1.9% Over the Next 12 months, Claims Timetric24 Dec 2012 • by Natalie Aster
The European asset finance industry is optimistic over business growth and profitability
Survey results reveal that the majority of asset finance companies expect growth in business. A total of 74% of the CEO-level respondents expect the business volume to increase over the next 12 months, with 44% expecting an increase between 5% and 20%. Similarly, 63% of the respondents expect an increase in profit, with 44% expecting an increase between 5% and 20% over the next 12 months. A total of 17% of respondents expect business volume to increase by over 20%.
Consolidation is set to increase in the asset finance industry in 2013
According to the report “European Asset Finance Industry CEO Business Outlook Survey 2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in the Asset Finance Industry” by Timetric, a notable 40% of CEO-level respondents expect ‘no change’ in M&A activity over the next 12 months. Market uncertainty and increased regulations in view of the 2008–2009 financial crisis and the ongoing eurozone debt crisis are holding back some entities from consolidating.
In contrast, 48% of respondents expect either an ‘increase’ or a ‘significant increase’ in the level of M&A activity over the next 12 months. The main reasons for this are changing capital requirement regulations, pressure on profitability forcing companies to consider inorganic growth, growing focus on divestitures, and a desire by many companies to increase their global market presence.
European Asset Finance Industry CEO Business Outlook Survey 2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in the Asset Finance Industry
Published: November, 2012
Price: US$ 995.00
Eastern Europe, India and Brazil are promising emerging markets for asset finance
A total of 24% of CEO-level respondents identified India as a key emerging market. The country’s infrastructure and construction sectors are expected to register growth over the next few months, leading to huge demand for equipment. According to the country’s twelfth Five-Year Plan (2012–2017), a total of US$1 trillion of investment is planned for infrastructure development, of which 50% is expected to come from the private sector. Consequently, huge potential exists for equipment leasing and financing companies in India.
‘Renewable energy asset financing’, ‘IT equipment financing’ and ‘commercial vehicle financing’ are the most promising products for the asset finance industry
According to 56% of CEO-level executives, ‘renewable energy asset financing’ is expected to record high levels of demand over the next 12 months, while 44% expect ‘IT equipment financing’ to record high demand in 2013. ‘Commercial vehicle financing’ is also expected to record high demand as identified by 41% of respondents.
‘Market uncertainty’, ‘reducing demand’ and ‘lack of liquidity’ are key concerns for the asset finance industry
Among respondents from the asset finance industry, 58% identified ‘market uncertainty’, 40% identified ‘reducing demand’ and 38% identified ‘lack of liquidity’ as leading business concerns for 2012. ‘Increased regulation’ is another important issue, as identified by 23% of CEO-level respondents.
Asset finance lenders expect capital availability to increase over the next 12 months
Adequate availability of capital is of key importance for the lenders as well as suppliers operating in the asset finance industry. Of all respondents, 28% expect capital availability to ‘increase slightly’, while 40% expect ‘no change’.
Average annual marketing budget of companies expected to increase slightly in 2013
Timetric and VRL’s industry survey revealed that the average marketing budgets of asset finance companies are expected to rise by 1.9% over the next 12 months. The average marketing budget for companies in the European asset finance industry is expected to be US$2.3 million, the average increase in budget is expected to be US$47,300 over 2013.
More information can be found in the report “European Asset Finance Industry CEO Business Outlook Survey 2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in the Asset Finance Industry” by Timetric.
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