Industry Analysis & Industry Trends
The Financial Leasing industry provides businesses, government bodies and households with the ability to lease assets, such as vehicles and various other equipment. Industry revenue is estimated to increase at a compound annual rate of 4.9% over the five years through 2016-17. Despite this impressive growth, revenue expansion was sluggish at the beginning of the period, as relatively weak consumer and business confidence levels restricted demand for financial leasing. Strict lending criteria also made it harder to obtain a financial lease. Nevertheless, historically low interest rates made leases more cost effective, which supported demand... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is determined by comparing the human and capital equipment factors of production using wages and depreciation as proxies. High depreciation costs indicate a high level of investment in depreciable assets such as buildings and equipment, implying high capital intensity. Conversely, high wage costs indicate high labour intensity. The Financial Leasing industry has a moderate level of capital intensity, with an estimated capital-to-labour ratio of 1:3.42. This indicates that for every £1.00 spent on capital, £3.42 is spent on labour.
Since it is a service-focused industry, the Financial Leasing industry has relatively high labour costs. A h.. purchase to read more