Equipment Leasing Association Task Force Findings
(from ELT, the magazine of Equipment Leasing & Finance)
Industry Profile (highlights):
*Leasing is institutional---25 companies doing 75 percent of the total business.
*There’s been a rapid decline in number of independent companies.
*Bank and captive lessors dominate the marketplace, with only a few independent or quasi-independent companies making an impact.
*There’s been significant bank consolidation and changing position of equipment leasing organizations within banks.
*There is a bi-polarization of leasing companies into haves and have-nots.
A study of the ELA membership finds 30-40 of the largest regular members could include all companies that drive the market and manage the risks...To understand
this, the committee broke it down into four groups:
* Mega companies with major market positions (35). Their presence matters in the marketplace because of size.
*Active regular members of all sizes who participation in ELA activities and support of its efforts matter to the success of the industry (175)
*Passive regular members who do not participate or contribute significantly to the success of the association and industry (300)
Associate (service provider) members that primarily market to regular member companies (230)
What do the member’s value---
*Advocacy—a strong collective, pro-active representative and voice
*Networking---both for doing business and sharing information
*Industry Knowledge, including statistical data and reports, practices, and issues, tends, compliance, and make-up of the marketplace.
*Competency, including the basic threshold non-proprietary learning for large numbers, and limited advanced education for key member company functions such as credit, sales, accounting, equipment management and compliance.
Thus the new changes in dues with a rise basically of the minimum from $1200 to $2400. As many leasing companies, salesmen, and brokers have found micro leases of $1500 are not “economical” for the “overhead” involved. Many banks consider $500,000 a bare minimum for their operation.
“There are 177 members in the category that currently pays $1,200 in dues - about 35% of the regular members. They pay 11% of the total dues.”
Many active members are “in-between” and due to the major changes, to not lose their involvement, a $600 “transition member” fee ( no voting ability), but involvement and resources remain.
“We project that at any one time there will be, at least, 100 individuals who are not currently employed by an ELA member company and are looking for employment., “ says Michael Henderson, Director, Membership & Marketing
“ ELA is very excited about the Transitional Membership because it's a chance to help many individuals who have helped ELA in the past. ELA still expects Regular Members to be the preponderance of its membership.
“The minimum per member dues (which has not been adjusted in a decade) has been determined to be $2,200. It is calculated based on factors including the size of a company (i.e. the risk outstanding that a company ahs in the industry), how many employees a company has (i.e. how many of a company's employees are using ELA's benefits and services), and the basic cost of administration of a member (regardless of size).
“ELA dues are used primarily for programs related to advocacy issues, industry research, ELT magazines and the like. It is not used for conferences, workshops, and training. Those programs are supported by registration fees.”
Director, Membership & Marketing
Equipment Leasing Association
4301 N. Fairfax Drive, Ste. 550
Arlington, VA 22203
703.527.8655; 703.527.2649 (Fax)