Sutton:  The world situation, weak GDP growth, regulatory pressure and uncertainty, and political uncertainty all affect confidence. Anything above 50 on the Foundation’s Monthly Confidence Index is positive, and we’ve been cycling around 60, so we are in positive territory.

Equipment Finance Advisor:  According to July’s MLFI-25 report, through June 2014, new business volume is up 3%. Additionally, according to the Foundation, investment in equipment and software is forecast to grow only 2.6%, which is down from 4.2%. While this is still positive growth, it is again, lackluster. What in your estimation needs to happen in the economy that will help to stimulate Capex expansion?

Warner:  Without a doubt, growth has been slow. Coming out of the recession we saw stronger than normal growth as a result of pent up demand, and I think the respite we are seeing now is because most of that slack has been absorbed. Slow growth in our industry is really a reflection of a sluggish GDP and overall slow business investment. I think we’ll see some pick-up in the second half of the year, and it’s important to remember that while we are in a recovery, this rebound is much slower than previous ones. We also need more job creation to really stimulate capital expenditures. As more people become employed and businesses continue to expand, we’ll see growth in the overall economy and within our industry.

Sutton:  I believe GDP growth above 3% and moving from a replacement environment to one of expansion would help our industry the most. We need more consumer confidence, more job growth and more political and regulatory certainty.

Equipment Finance Advisor:  More and more, banks – especially community banks – are entering the equipment finance industry. Can you provide your views on this trend? Do you view it as positive or not, or a mixture of the two?

Warner:  Investors are rewarding banks for growing their balance sheets right now. There is a lot of liquidity in the market, and equipment finance is a great way for banks to deploy some of that capital. For many banks, equipment finance is beneficial from both an economic standpoint and a risk standpoint.

I think this trend is very positive for our industry. It’s healthy for any industry to have more competition, and more companies operating in this space means both job creation and growth potential. Throughout history, increasing competition has motivated leaders in our industry to be more innovative and find new ways to meet customer needs. I see this kind of innovation happening within the industry now, and I anticipate we’ll see more of it into 2015.

Sutton:  Yes. It’s a good trend for the association. These community banks are joining ELFA to learn, to set up business opportunities, and to participate in the advocacy for our industry.

Equipment Finance Advisor:  Lastly, the equipment finance industry lost Mike Fleming on August 19. Without a doubt, Mike had made many contributions to the industry. I wanted to give you an opportunity to reflect on Mike’s passing and share your thoughts about the difference he made for the industry.

Warner:  Mike Fleming is an icon in this industry. For almost 30 years he was the face of the ELFA, and he should be credited with making the ELFA the premier association of our industry. His commitment to networking and education has helped both the ELFA and our entire industry to grow over the past three decades. But even more importantly, he was a real gentleman. His likability and approachability played a big part in making the ELFA the collegial association that it is today. It’s hard to think about the ELFA and not think about Mike Fleming. He will be missed dearly.

Sutton:  Mike built ELFA and the Foundation. More than being an association executive, he was a friend and mentor to many of us here on staff. Anyone who ever worked with or for Mike was truly blessed. You will never find a finer gentleman or more natural leader. He is already missed.