Optimism is growing around the COVID-19 vaccine roll out and a long-awaited economic recovery, so it’s understandable that business and corporate leaders might want to briefly celebrate the conclusion of 2020 before jumping into the business challenges facing them in 2021. 
 
The year undoubtedly will be different. Decision makers will be under pressure to maintain steady results in a still unsteady economy. To wisely spend available dollars today with an eye pointedly looking toward tomorrow. And to pivot at a moment’s notice based on an unrelenting, unparalleled and unforgiving pandemic.  
 
Despite the certainty of continued uncertainty, careful planning and thoughtful decision making can bring great results in 2021 for those willing to think bravely and act proactively. This can be a gamble, but it does not hurt to be backed up by research forecasting credible trends by industry sector. Dispensing equipment financing advice to our clients in a few key industries will help them make informed equipment or software purchases–decisions that will drive their business productivity. Making such financial decisions, however, is harder than it looks when these questions loom:
 
Will the airline industry soar again or be grounded permanently by wary travelers? Will the reinvention of manufacturing processes invigorate the sector or burden it? Will unprecedented shifts in healthcare delivery, support and suppliers inject new life into that sector or collapse the existing model? And finally, will the remarkable acceleration of technology adoption take us to places we have never been or bog us down with costly glitches and missteps?
 
It undoubtedly will take months, if not years, to sort all this out. But while we are waiting for things to be “normal” again, here is what you need to know for favorable financing trends in 2021:

1) Industrials and Manufacturing Kick into Gear

The Manufacturing sector expects a 3.6% annualized increase, rising to almost $6 trillion by 2025¹. The most important trend in this sector focuses on process improvement, simply because increased productivity translates to revenue growth.

Source¹: IBISWorld, 2020, Manufacturing in the U.S.
 

2) A Greener Path in Logistics & Distribution

Investment trends in Logistics and Distribution, which expects a 3% annualized increase, rising to almost $1.5 trillion by 2025², relate to automation, fuel efficiency and technology. The use of automated cranes and robots, particularly at warehouses and ports, is projected to increase. We will see more sophisticated and fuel-efficient vehicles in response to environmental regulations; and technology will continue to evolve at a rapid pace to improve efficiency, reduce labor costs and limit accidents.

Source²: IBISWorld, 2020, Transport and Warehousing in the U.S.
 

3) Private Travelers will See New Heights in Safety

The Private Aircraft sector expects a 5.1% annual increase, rising to almost $32.3 billion by 2025³.  Not surprisingly, this sector’s growth will be directly tied to COVID-19, as the industry heavily promotes safety and health in order to woo travelers away from commercial airlines. Expect to see a rise in more personalized services to meet the increasing demands of savvy travelers, while private aircraft companies court returning and new users in an effort to increase demand for an industry historically seen by some as financially out of reach, but now increasingly seen as reliable, safe and more affordable.

Source³: IBISWorld, 2020, Charter Flights in the U.S.
 

4) The Infinite Scope of Technology Marches Upward

Investment trends in the Data and Technology sector foresee a 4.4% annual increase, rising to almost $60 billion by 2025⁴. In this area, data collection and management will leverage data capabilities with untapped data to improve efficiencies; cybersecurity is poised to prioritize and further transform a burgeoning market with complex tech stacks and remote work; and intelligent composable businesses will increase companies’ agility in a rapidly responsive environment.

Source⁴: IBISWorld, 2020, Database Storage and Backup Software in the U.S.
 

5) Healthcare Focuses on Inventory and Wellness

Finally, the essential field of Healthcare, which was truly tested in 2020, expects a 1.1% annual increase, rising to almost $3 trillion by 2025⁵. Digital delivery models will capitalize on the unprecedented 10,000% surge in technology/telemedicine use during the pandemic, while staff support strategies to expand wellness programs and reduce staff burnout will be critical areas of focus. Finally, re-evaluating suppliers to expand vendor lists for sufficient inventory levels will be on everyone’s mind for the near future.

Source⁵: IBISWorld, 2020, Healthcare and Social Assistance in the U.S.

How First American Can Help:

Being ready for the unexpected is what we do at First American. When the working from home movement exploded in 2020, like many we shifted to a completely new way of doing business. However, our digitally enabled model with a new business platform allowed us to continue to do business without skipping a beat–so our clients did not either. The FA | Experience digital platform allows clients to:

• View project statuses instantly

• Sign contracts using e-sign

• Securely submit information quickly and confidentially

• Track and update assets online

• View and pay invoices

• Download reports

• Determine what equipment is returned or kept for continued use

The platform not only allowed our clients to make leasing and financing decisions, it also illuminated ways to further improve for the coming year. Keeping leasing and financing projects moving keeps companies moving–and signals that your business is open for business.
 
First American clients know that when we say, “Let us sweat the small stuff,” we mean it. So while 2020 definitely presented plenty of sweat-inducing moments–some expected, but most wholly unexpected–we begin 2021 ready to enhance our processes, outwork and outdistance our competitors, and leverage our strong relationships to keep our clients’ projects moving forward.
 

Fill out the form below to learn more about how First American can customize a financing solution for your business.