PlasticsWatch

Top 10 equipment acquisition trends for 2022

The Equipment Leasing and Finance Association (ELFA) announced its Top 10 equipment acquisition trends for 2022:

1. The U.S. economy will have solid growth; potential for economic growth later in the year is substantial with 3.5 percent GDP growth forecast for 2022.
2. Equipment shortages will continue due to supply chain disruptions. Businesses will be likely to invest capital in maintaining inventories of crucial components and develop relationships with new suppliers to reduce impact of future disruptions.
3. High inflation will be a major headwind for Main Street and the economy. The Federal Reserve has announced several interest rate hikes in 2022. It remains to be seen what impact, if any, interest rate increases will have on supply or demand.
4. Positive growth in capital spending will continue. Equipment and software investment growth of 4.6 percent is expected.
5. Equipment finance will play a significant role in economic growth. Based on historical precedent, more than half of equipment and software investment this year will be financed. In addition, inflationary pressures that drive equipment prices higher will make financing more desirable with payments spread out over time.
6. Government fiscal and regulatory policies will pose opportunities and challenges to capital spending.
7. Pandemic-driven changes in the workplace will continue to impact equipment demand. Ongoing remote/hybrid work arrangements will drive demand for new types of equipment and software. Automation and AI technologies such as robotics, machine learning and natural language processing will boost the productivity of employees working remotely and fill the void of unavailable labor.
8. Many key equipment types will show growth. While equipment and software investment should expand at a healthy rate, growth is likely to be uneven across equipment verticals. Trucks, oil and gas equipment and materials handling equipment should benefit from sustained demand. Verticals such as automobiles, construction machinery and agricultural equipment may continue to face pandemic-related headwinds such as input shortages, high energy prices and volatile demand conditions.
9. Businesses will increase their focus on digitization and data. Businesses will need to leverage both customer and external data for competitive advantages in areas such as customer behavior and market dynamics. Cybersecurity risks will require increasingly robust cyber- and data-security protocols to be implemented.
10. Wild cards will play a role in business investment decisions. There are other areas in addition to the trends above that businesses will keep an eye on that could impact their equipment acquisition strategies. Continued fallout from the pandemic and future variants, ongoing labor shortages, passage of the “Build Back Better” spending package in Washington and midterm elections could all have potential business impacts.

ELFA distilled recent research and data, including the Equipment Leasing & Finance Foundation’s 2022 Equipment Leasing & Finance U.S. Economic Outlook, industry participants’ expertise and member input from ELFA meetings in compiling the trends. www.equipmentfinanceadvantage.org/toolkit/10trends.cfm.

Medical polymers market forecast to grow at CAGR of 8.3 percent

A report by Research and Markets is predicting that the medical polymers market will grow at a CAGR of 8.3 percent. According to the Medical Polymers Market – Size, Shares, Outlook and Opportunity Analysis, 2021-2028, the growing prevalence of chronic disease and increasing investment in healthcare are driving growth. Increasing use of advanced medical technologies such as 3D printed implants and customized devices are contributing to this growth. Medical polymers is the term used for the building blocks of most medical devices today. These polymers include elastomeric fibers, polyethylene glycol, plastics, rubber micro particles, rubber powder, resins, thermoform, silicone, nylon, cement and rubber composites. Medical polymers are generally classified into synthetic resins, synthetic fibers and elastomeric fibers. Medical polymers can be used as fillers and additives in a variety of medical plastics, packaging and devices. They are also used in the manufacturing of surgical gloves and other medical accessories. Some of the most common medical polymers include neoprene, polystyrene, polyurethane, polyisocyanurate, polycarbonate, acrylate, polyethylene terephthalate (PET) and polycarbonate. For more information, visit www.researchandmarkets.com/reports/5509627.

Asia/Pacific region predicted to have strong demand for adhesives, sealants

A Freedonia Group analysis of the global adhesives and sealants market projects the Asia/Pacific region to account for over 70 percent of global volume demand growth between 2020 and 2025. Expanding manufacturing output will fuel sales gains across a number of major markets in the region, boosting adhesives and sealants use in packaging, tapes and labels, motor vehicles, electronics and footwear, among other applications. China’s global dominance in several key end-use industries — including appliances, electronics, footwear, furniture, machinery and packaging — will continue to bolster the country’s position as the world’s top consumer of adhesives and sealants. In emerging economies in the region, suppliers of packaging adhesives will benefit from rising demand for packaged consumer goods, supported by growing urban populations and improving disposable income levels. A rebound in motor vehicle production in Japan and South Korea will support demand in these countries.

India will see the most rapid advances of any major national market globally, boosted by rising public infrastructure spending, which will drive strong growth in domestic construction activity (and related adhesives and sealants use) and domestic sales of motor vehicles, which will fuel output and capacity expansions by major automakers in the country.

Global Adhesives & Sealants is now available from the Freedonia Group. www.freedoniagroup.com/industry-study/global-adhesives-sealants-4301.htm.