construction sector Archives

The construction and engineering industries are highly competitive, so it is important to stay ahead of the game. Leasing can help you obtain the equipment your business requires to ensure you can keep pace with the latest technology. Investing in new plant equipment and machinery can be a huge outlay, but leasing offers an advantageous alternative for the construction sector to buying with highly competitive interest rates. Indeed, with banks reducing the amount of overdrafts and loans available to businesses, leasing and asset finance is increasingly being considered as the best and most tax efficient way to acquire new equipment or assets for the sector.

With a lease agreement, the asset you require is yours to use straightaway, but you pay for it in installments over a fixed period of time, which helps you spread the cost over the life of the equipment. You can also upgrade or expand your resources easily, as and when the need arises.

Furthermore, with leasing you have a fixed interest rate. This protects you against interest rate rises and enables you to plan your budget effectively. And as inflation rises, because your payments are fixed, the cost of the equipment reduces in real terms.

A wide range of equipment, from milling machines and welding equipment to portacabins and cement mixers, can be leased. Some of the types of equipment that can be leased include:

Welding equipment
Vehicles (e.g. cement trucks and tractors)
Bulldozers
Plant equipment
Portacabins
CNC machining centres
Surveying equipment
Cranes
Diggers
Drills
Lathes
Generators
IT hardware and software
CAD software

WestWon Limited has a wealth of experience in providing asset finance solutions for the construction and engineering sectors. For more information, download your free Essential Guide covering Construction and Engineering Equipment Leasing for Business. Or call Tel: 01494 611 456 for more information and an instant quote for the equipment you require.

Figures released at the end of 2013 by the Finance & Leasing Association (FLA) show that new business provided to fund investment in construction equipment grew in October by 41% (to £134 million), and by 13% over the last twelve months (to £1.2 billion).

It was also a good month for the commercial vehicle and IT equipment finance sectors, with double digit growth in new business of 13% and 12% respectively.

Overall, the asset finance market reported growth of 4% to £1.9 billion in October for new business deals of up to £20 million. This market has grown each month since April 2013, with new business up in the first ten months of the year by 2% to almost £17.7 billion compared with the same period in 2012.

Commenting, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said:

“The asset finance industry is in a unique position to support businesses as the recovery takes hold. It funds investment in the key equipment that businesses need if they are to expand to meet stronger domestic demand.

“The FLA’s Q4 2013 Asset Finance Confidence Survey suggests that the industry’s senior executives are cautiously optimistic about economic prospects and market conditions over the next year, with a majority expecting growth of up to 10% in each of the main channels for new business.”

	Oct 2013	% change on Oct 2012	3 months to Oct 2013	% change on prev. year	12 months to Oct 2013	% change on prev. year
Total FLA asset finance (£m)	2,137	+11	5,687	+3	21,667	-2
Total leasing and hire purchase excluding high value (£m)	1,926	+4	5,372	+3	21,053	0

Data Extracts:
Plant and machinery finance (£m)Of which: Construction equipment finance (£m)	398 134	+14 +41	1,158 365	+10 +48%	4,416 1,209	+3 +13
Commercial vehicle finance (£m)	474	+13	1,309	+10	4,795	+2
IT equipment finance (£m)	112	+12	338	+11	1,495	+9
Business equipment finance (£m)	150	-3	439	-4	1,860	-7
Car finance (£m)	627	-4	1,618	-2	6,676	+1
Aircraft, ships and rolling stock finance (£m)	3	-96	35	-83	264	-50

bers provided £80.2 billion of new finance to UK businesses and households. £21.5 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year.
The FLA quarterly asset finance confidence survey aims to gauge senior executives’ opinions about the outlook for the UK economy and the asset finance industry. All FLA asset finance senior executives were invited to take part in the survey. The Q4 2013 results are based on responses from 30 member companies, who accounted for 76% of annual new business.

For more information see the FLA website. You can also download the WestWon Guide To Equipment Leasing here.

Tag Archive for: construction sector

Leasing Cements Its Place In The Construction Sector

Construction Sector Leasing Grows In Popularity

GET IN TOUCH

PORTAL ACCESS

CORPORATE INFORMATION