There’s no shortage of indicators that describe how the economy is performing, but some of the most telling signs are business creation and hiring. For example, mosts economists say that anything less than 5 percent unemployment can be considered full employment. The jobless rate has been below this threshold for most of the year so far. Additionally, the private sector has added jobs for over 75 months in a row now.
Much of this prosperity wouldn’t be possible without entrepreneurial investment, both in the U.S. economy and in business owners’ operations. In fact, when it comes to obtaining equipment, approximately 70 percent of businesses use some form of financing, according to the Equipment Leasing and Finance Association.
Here’s a brief look at how various forms of equipment financing fuel the economy’s engine:
Construction
In 2019, 69% of construction equipment distributors said sales of new equipment are expected to increase. Construction equipment, meanwhile, saw the greatest increase in residual value out of 15 other equipment types.
Healthcare
One-tenth of Americans are employed in the healthcare industry, and U.S. households spend 10% of their income on health-related expenses. To meet demand, hospitals spend $93 billion annually on medical devices and upkeep. The more healthcare facilities and medical offices can spend on critical equipment, the better care they can provide.
Manufacturing
Every $1 investment in manufacturing — an industry that contributes $2.37 trillion to the U.S. economy every year — results in another $2.74 added to the economy. A large majority of private-sector research and development (63%) goes toward manufacturing advancements that push society forward.
Restaurant & Food Services
Within the next decade, restaurant sales are expected to reach $1.2 trillion annually. Because 1 in 10 Americans is employed in this critical industry, continuous investments in equipment must be a top priority to keep business humming right along.
Technology
More than 30% of small business leaders use more than five applications to run their businesses. Technologies such as AI and CRMs are becoming increasingly vital to small businesses, especially when it comes to acquiring new customers and marketing automation.
Refer to the infographic below for a few other ways today’s most asset-intensive industries support the U.S. economy:
