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Computer & Printer Leasing Expected to Grow 2.9% in 2014

March 11, 2014, 06:50 AM
Filed Under: Technology

The Computer and Printer Leasing industry lends its services to a variety of clients. Companies and government entities can cut costs by using variable leasing options instead of facing the possible cash flow problems associated with using scarce funds for purchases. The ability to use and return rented equipment within various timeframes encourages businesses and government organizations to move away from high-fixed assets and costs.

According to IBISWorld Industry Analyst Dmitry Diment, “By offering these services, the industry is sensitive to trends in fixed-capital spending by operators in the business and government sectors, which are influenced by changes in business and consumer sentiment, as well as economic activity.” Changes in real interest rates and tax laws that directly affect financing and leasing costs also impact industry performance. The industry faces competition from used office equipment, which increased in supply as businesses went bankrupt during the recession. While declining corporate profit and low business sentiment caused industry revenue to decline in 2009 and 2010, a reversal in these trends has slowly improved the industry's fortunes. Over the five years to 2014, IBISWorld expects industry revenue to grow at an annualized rate of 1.1% to $6.7 billion, including a 2.9% increase in 2014.
 
Industry growth is derived from the outsourcing of office equipment purchases. In particular, companies have turned to multifunction centers (MFCs) to increase productivity. As technology advances, more equipment will become obsolete, thus lowering residual sale values for owned equipment and assisting industry growth; however, the adoption of technology is encouraging competition within the industry. “Higher corporate profit and a more stable financial environment during the next five years will allow businesses to spend more on outsourcing office equipment,” says Diment. The national economy is expected to recover sluggishly over the five years to 2019, and industry revenue is forecast to grow slowly over the period. Technological change and the rapid expansion of office technology products will benefit the industry as businesses use a wider selection of computer and printer leasing services.







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