In a study released December 18, 2007, the Equipment Leasing & Finance
Foundation reports on the domestic equipment finance sector and its
importance both domestically and internationally. According to the
report, “The commercial equipment finance sector contributes to capital
formation in the U.S. and abroad and plays a vital role in supporting the
continued expansion of the U.S. economy by facilitating capital
investment.” Since equipment finance is a financing mechanism for the
acquisition and utilization of capital goods, the report concludes that it should be recognized as capital formation. Through equipment financing, US businesses are able to acquire affordable capital equipment. These investments directly impact the commercial economy and the financing of such activity is a form of capital formation.

The report is based on information related to the $1.1 trillion invested
in plant, equipment and software in 2006 of which 55% or $600 billion was
financed through loans, leases and lines of credit. Included in the
category of equipment finance are loans, leases, and lines of credit
secured by plant or equipment assets. Financed equipment studied in the
report included: commercial and corporate aircraft; rail cars and rolling
stock; trucks and transportation equipment; business, retail and office
equipment; manufacturing and mining machinery and equipment; IT equipment
and software; vessels and containers; construction and off-road equipment; medial technology and equipment; rigs and drilling equipment; and plant and production facilities.

More information about the report and its sponsors can be obtained at the
Equipment Leasing & Finance Foundation's website:
http://www.elfaonline.org/pub/news/IndNews/news_report.cfm?id=8009