When it comes to equipment management, the strong hardware and software markets offer promise for refurbished products.

Budgets in place, we’re halfway through the 2019 opening quarter for equipment management. What does the economic future hold? What factors should we watch to help us make informed decisions on equipment management in the coming year?

Part of the answer is found in the newly released 2019 Equipment Leasing & Finance U.S. Economic Outlook. The report, released by the Equipment Leasing & Finance Foundation, paints a mostly favorable picture as we head into 2019. First the good news: Transportation industries like railroad, aircraft, and ships and boats appear strong. Computer hardware and software markets are also poised for growth (That’s good news for Mainstream Global customers).

Among industries where a slowdown is expected for the equipment market, we find agriculture, medical, oil field, mining, and truck transportation, while most of the construction equipment market will see moderate growth rates.

So, let’s dive in and look at some of the evolving economic factors which could affect these trends and the way you should approach equipment management.

Continuing trade war with China could slow the dollar.

One of the few possible hiccups in the economy stems from the trade war with China. Economic uncertainty seems to be taking its toll. The Chinese market is in a slump and looking to worsen over the next 12 months. Residual effects can already be seen in the slight crunch on the Euro (EUR) as European markets begin to slow. The U.S. dollar has yet to be affected, but a slight reduction might eventually take place. Renewed trade negotiations or an easing of tariffs may be enough to ward off a possible downturn of the U.S. economy in the coming year.

Computer hardware and software continues to grow.

The computer hardware and software markets are forecast to expand between 4 and 9%, the same rate we saw in 2018. The continued expansion is good news for Mainstream Global customers as demand for redeployed hardware will remain strong.

Housing market weakens well into 2019.

Housing is the weakest sector in the U.S. economy and looks to remain that way through 2019. Rising costs of labor as well as lumber and other building materials have put a strain on homebuilder confidence. A combination of rising interest rates and elevated home prices have also started to slow consumer demand. Without a break in economic forces — Feds slowing interest rate hikes, soothing of the trade war with China — the housing market isn’t expected to rebound soon.

Labor market to remain strong.

The U.S. labor market is projected to remain strong through 2019, according to the report. The average hourly earnings of private sector workers are up 3.1% over 2018 numbers. Coupled with the prospect of better benefits and more flexibility in attracting workers in their prime back into the labor market, the outlook appears positive. Unemployment hovers around the 3.7% range and new jobs are being added at a high rate.

Consumer spending to remain healthy through 2019.

Consumer spending shows signs of staying strong throughout 2019. Spurred by tax cuts, a healthy labor market, and continuing consumer confidence, spending doesn’t look to slow anytime soon. Only large-scale consumer purchases seem to suffer, especially in the automotive and the housing markets.

So, what does this mean to Mainstream Global customers? The strong markets for both computer hardware and software will provide a robust outlet for refurbished IT assets, leaving Mainstream Global customers with a better ROI.

Let us tell you how we can help you get the most out of equipment management and your retired assets. Contact us today to learn more.

Mainstream Global, Inc., headquartered in Lawrence, Mass., owns and operates ISO 9001, 14001, OHSAS 18001 and R2 certified processing centers in the United States, Colombia, Peru, Chile, Argentina and Brazil.  With over 19 years of directly servicing and re-selling assets from top-tier manufacturers, Mainstream Global is the recognized expert.  Our partners rely on us for compliance, security, professionalism, and brand protection, all while providing the best returns and prioritizing global environmental standards. 

 

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