The Wells Fargo Equipment Finance 2015 Construction Industry Forecast surveys construction contractors and equipment distributors to gather insight into current business conditions and trends. The survey measures their feel for construction activity in the upcoming year.
The US National Optimism Quotient (OQ) is the main metric for measuring. It gives an indication of optimism about the coming year compared to the previous year. You’ll be happy to know that the OQ for 2015 hit an all-time high! It showed broad consensus among contractors and equipment distributors across the US that there will be year-over-year improvement in nonresidential construction activity in 2015 vs. 2014.
You’ll find way more detail in their forecast and full report, but indications are that equipment purchases will increase in 2015. More contractors than in the previous year say they’ll increase new and used equipment purchases while more distributors expect sales of both new and used equipment to increase.
The regulatory issue of greatest interest in the 2015 survey was tax incentives, such as bonus depreciation and Section 179 deductions. The Highway Funding Bill and the Affordable Care Act were also among those issues most frequently mentioned to be of interest.
The trend in equipment rental growth is set to continue in the year ahead. Contractors who said they rented heavy construction equipment in 2014 also said they’ll increase rental activity in 2015.
Thanks Wells Fargo Equipment Finance for all the insight!