As a sidebar to our September production print issue, we asked the leasing companies what interest are they seeing from dealers for funding leases for production and industrial print equipment? Following are the responses from representatives of leasing companies who responded to this question by our deadline. Additional commentary will be published in a future post.
“Demand for production print leasing is rising. After a year of unprecedented pressure on revenue, the growing market for lower cost, digital cut-sheet, and large format offers dealers a lower barrier to enter the space, a new source of revenue, and a path to potentially higher margins. As the technology evolves to include a wider variety of media types, advances in ink, better finishing options, and advanced label printing, it’s increasingly difficult to justify investments in traditional offset technology with higher lease payments.” Nick Capparelli, managing director, dealer solutions, LEAF Commercial Capital
“We have not seen any measurable increase in production or industrial printing equipment funding compared to the last few years. With that said, we are seeing an increase in quote requests and general inquires around products, rates, and programs. The conversations and requests are coming from approximately 15 to 20% of our dealer partners. We have also had requests from manufacturers. A few things are driving this increase in activity and interest. The current softening of net new placements as well as clicks in the market due to COVID and other factors has driven progressive dealers to look at other avenues of revenue. These range from IT solutions to managed services as well as production and industrial print. This is coupled with the fact that manufacturers have a strong focus on the placements of this segment which has also increased industry interest. In relation to financing, dealers have been discussing niches of applications such as graphic arts, packaging and transactional printing with us and the corresponding credit profiles as well as rates and residual positions. Based on the increased interest, we expect to see an increase in volume in this segment over the near future.” Fred Carollo, vice president of sales, U.S. Commodities and Global Markets, Specialized and Asset Finance, Macquarie Group
“Today’s industrial and production print equipment is truly amazing. The transition to the digital production and industrial gear means faster set up, nearly unlimited ability to customize jobs and immensely quicker turnaround times. This allows printer to save on time, labor expense and energy costs. Modern industrial and production equipment results in important wins for the printer – including substantial reduction of their energy costs, a smaller carbon footprint, lower operating, less reliance on outsourcing and new opportunities for additional revenues from new potential products and markets.” Michael D’Errico, director and office imaging team leader, CIT Equipment Finance
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