Events This Week
by Paul Menzel, CLP
Panels--San Jose, Ca
Starts Exceed Expectations
Incentives to Recruit New Members
Day in American History
This Border #####
Denotes Press Release (Not Written By Leasing News)
Events This Week
Weekly Jobless Claims
WEATHER FOR ELA’S 42ND ANNUAL CONVENTION REFLECTS THE STATE
OF THE INDUSTRY
Lingering Fog plagues Big Ticket leasing.
Patchy Sun teases
the Middle Market segment of the Industry.
& Vendor lessors warm up to clear & sunny skies.
By PAUL MENZEL,
SAN DIEGO, CA - The
City that is known for perpetual sunshine reminded leasing professionals
from around the Country that change is a constant. Every attendee was looking for signs of positive economic growth to break the chill
that they have been enduring for the last two years. Overcast skies opened the convention on Saturday, but warm sunshine
emerged by the end of the meeting on Wednesday. The fluctuating weather of San Diego served
as a fitting backdrop for the release of the “2003 State of the Industry
Report” by the Equipment Leasing and Finance Foundation. Tom Peters and Michael Treacy
shared their secrets for achieving growth regardless of the economic
conditions. Ben Stein, actor and economist, provided balance with a flood of jokes
and life chronicles.
1150 individuals in attendance were as diverse as the industry’s prospects. Approximately 430 different companies represented
all segments of the market. Attendance
by individuals was down by only 5% from last year but higher than two
years ago. The number of companies
represented was equal to last year and up 15% over 2001. ELA membership, down approximately 10% from
the prior year, is stronger than forecasted by the Association’s leadership.
The largest segment and greatest growth in membership is in the
smaller size companies and lowest dues paying category.
The foggiest prospects
continue to be reported by the Large
Ticket leasing segment. Thomas M. Jaschik, LaSalle National Leasing
Corporation, reported to the ELA Board of Directors that change is in
the air. The equity markets are
static to declining; low bank debt rates provide a formidable alternative
for lessees; attacks on off-balance sheet treatment and synthetic structures
are a continuing threat; Basil II Accord confounds the future for many;
consolidation and contraction continue.
Michael Fleming, ELA President, reminded
everyone that the hallmark and strength of the industry is adapting
to change with creativity and innovation.
David Merrill, Fifth Third Leasing Company, reported cautious optimism for Middle Market leasing. The legislative tax changes affecting leverage
leases also serve as a threat to this segment. The average size of the mid-ticket lease has
dropped. The trucking industry
is again active; construction shows pent-up demand, manufacturing is
only replacing equipment; technology is indicating recovery from the
Y2K hangover. Portfolios are not being sold in order to preserve
income and profitability through static growth. Worries about a “false start’ in the economy
Service Providers, represented by John McCue
of McCue Systems Inc., reported 261 attendees.
Exhibitors found a warm and friendly reception with shopping
activity picking up. Consolidation
in the information and technology group continues.
Outsourcing of attendant processes and systems is a growing trend
among businesses in general and financial institutions in particular.
Small Ticket Vendors, as reported by Paul
Frechette of Key Equipment Finance, is seeing increased collaboration
between lessors and equipment vendors.
New production is characterized as “hopeful”. Yours truly, as Chairman of the Small Ticket
Business Council, reported lower portfolio delinquency and charge-off;
improving credit quality of new applications; softening of the consumer
credit alternative of low mortgage rates; strong tax incentives for
small business to make capital equipment investment (Section 179 Deduction
and Bonus Depreciation); improving economy in the manufacturing and
service sectors. Convenience continues o be the business driver
for small ticket equipment finance and insulates this segment from many
of the accounting worries haunting other lessors. Price inelasticity in a low rate environment is rewarding participants
with healthy margins.
Throughout the conference,
the general mood was upbeat and reflected the conference theme of “TRUST IN EXCELLENCE’. Edward
Dahlka, Chairman of the ELA and LaSalle National Leasing Corp.,
opened the gathering with a report that ELA is “financially strong”. He also reported that “the survivors have used
the economic pause to become faster, leaner, and more focused in operations.”
Ed went on to tell attendees that “change creates opportunity
and our industry has always thrived in such times.”
The Association will spend almost $2 Million on “advocacy” as
it represents our industry in shaping positive change in the face of
increased regulation and homogenization … serious threat to all of our
business models. Donations to
the ELA LeasePAC are critical to our success in government relations
at the Federal and State levels. In
the end, Chairman Dahlka reminded us that “Community is created through
of “In Search of Excellence” fame, waxed sage by opening the general
session with his talk entitled “Business
Excellence for a Disruptive Age”. His message was the “replace apathy
and whining with commitment”. He
shared some quotes of others that he espouses below.
Presentation slides available at TomPeters.com.
“Uncertainty is the
only thing to be sure of.” Anthony Muck, Citigroup Asset Mgmt
“If you don’t
like change, you’re going to like irrelevance even less.”
General Eric Shuseki, Chief of Staff, US Army
“Innovation not Optimization.
We have shifted from a Service Economy to an ‘Experience’ Economy”
“75% of all administrative
functions, H.R., and backroom processes will be outsourced and digitized
in the next three years.” Jeffrey Imelt, GE
“Don’t own nothing
if you can help it.
If you can you should
rent your shoes.”
‘The sun is breaking
through” Paul Menzel reporting.
Paul J. Menzel, CLP
Senior Vice President
Community Bank Lending
SANTA BARBARA BANK
P.O. Box 60607
Santa Barbara, CA
1 South Los Carneros
Santa Barbara, CA
Dir Ph# (805)560-1650
Association of Equipment Leasing Regional Meeting
California—October 22---“Two Panels”
to 7:30pm at Napredak Hall, 770 Montague Expressway, San Jose
( 1 1/2
blocks off Highway 880.)
Eaton, Pentech Financial
Pritchard, Vencore Solutions
Wilder, Atel Leasing
Not Based on Credit Scoring"
known as "Story Credits" or "Cash Flow Analysis."
Eaton ( does story credits $250,000 minimum)
Houlihan, Allegiant-Partners ($30,000 +)
Julian, Dumac Leasing (Exchange Bank)
Open to All
Kit Menkin, American Leasing $15.00 800-727-3844
Starts Exceed Expectations
starts increased 3.4% to 1.888 million (SAAR), exceeding expectations.
Permit activity fell 2.2%, although permit levels at 1.86 million SAAR, suggest near term activity will remain brisk.
The more volatile multi family (MF) sector increased 4.5%.
Regionally, starts were up in all areas except the South which
fell a modest 1.3%.
and outlook: Housing starts continue at healthy levels with
mortgage rates remaining attractive with the 30 year conventional rate
just under 6%. There are increasing
signs that the economy is picking up steam – employment picture seems
to be stabilizing; business investment spending is improving modestly;
industrial production is improving modestly although manufacturing capacity
utilization remains below 75%; while the consumer continues to spend. Annualized core inflation (excluding food &
energy) over the past 3 months at the wholesale level ( PPI) is only
1.34% and 1.5% at the consumer (CPI) level.
Eventually, inflation will begin to trend upward (albeit modestly
according to most analysts) as the economy continues to improve. NAHB’s latest forecast has the economy improving
next year, therefore they expect a modest increase in the fixed rate,
30 year mortgage to 6.2% (versus 5.8% in 2003). This increase will pull housing back about 90,000 units to 1.68 million,
SAAR with single family falling back to 1.36 million. Historically, these are still good levels.
The real story the
past several months has been the rise in lumber and panel prices with
the framing lumber composite up 25% or more while the structural panel
composite price doubled during the 3rd quarter.
Other than frustrating some customers (e.g., retail buyers and
home builders), and adding several thousand dollars to the cost of building
a new home, the higher prices have not significantly reduced the appetite
of home buyers. For a good explanation (and rational one I feel), see
the October 10 issue of Random Lengths – “Fundamentals at work in the
panel market”. Of course, if prices stay where they are now, home builders will
use more substitutes according to recent studies by NAHB. At any rate, that is how the markets are suppose
to work – prices respond to shifts.
by region chart:
Carl Villella, CLP
and Financing Service, Inc.
1004 Sanlin Dr.
Moon Township, Pa.
Incentives to Recruit New Members
Notice To All Members:
With over 500 members, the National Association of Equipment Leasing
Brokers is the second largest professional trade association for the
leasing industry. Increased membership
benefits us all by attracting more funder and associate members, and
increasing the number of participants at our conferences and regional
meetings. It makes it possible to offer more benefits
programs, and generally helps make participation in the association
The NAELB Membership Committee invites all members to join our campaign
to recruit additional new members. This
will help us to contact a greater possible number of new member candidates,
and also enables us to contact prospective members we might not otherwise
a.. NAELB members are encouraged to help recruit
leasing industry participants (brokers, funders, or associates) who
are not currently active with our association.
c.. By joining now and paying
the annual dues amount in advance, new members can receive full membership
for the remainder of 2003 for free!
Their new membership will be activated immediately and they will
receive the association's full range of benefits until December 31,
2004. Annual NAELB membership dues are as follows:
Broker Member $295
b.. Funder Member
c.. Associate Member
d.. For each new member they
successfully recruit, current members can receive a credit of $50 to
be applied towards their future annual dues. Referral incentives are cumulative. (For example: Six new members recruited would result in 'free' membership
for all of 2004. Twelve new recruits
would eliminate annual dues for both 2004 and 2005, etc.)
a.. This incentive program
applies to all new membership applications received up to and including
November 15, 2003. No credit
will be awarded for applications received after November 15, 2003.
b.. Referral incentive credits will only be awarded when a new membership
application is accepted, the appropriate annual dues amount is paid
in full, and the submitted application form clearly names the sponsoring
party on the Referral line. Only
one current member will receive credit for recruiting a new member,
and only the current member whose name is printed on the new membership
application will receive the credit.
Referral party names cannot be added to an application after
it has been received by NAELB administration.
Current members should ensure that their name is included on
the membership application before forwarding it to each candidate they
are recruiting. For more information on this program, please contact
by phone at 1-800-996-2352 or
by email to: email@example.com
a.. Referral incentive credits
will no longer be awarded for half-year memberships.
Marlins Cold in Their Tracks
Bronco's Two QB
Out for Four More Weeks
Backups get Rams
No ifs, ands or
Bucs/49ers manhandle defending champs
Day in American History
1803-The Senate ratified the Louisiana Purchase
Treaty by a vote of twenty-four to seven. Originally
concerned that France
would develop this territory, by the time the American delegation reached
Napoleon was more
concerned about England and to both stop England from gaining this territory,
and to raise money,
had offered $15 million for the property. The delegation accepted it
any authority as
too good of an opportunity to turn down.
The ratification was more a legal
1818-A diplomatic convention signed between
Britain and the U.S. gave fishing rights to American seamen off parts
of Newfoundland and the coast of Labrador. The U.S. renounced such activity
within three miles of any other British Territory. The boundary between
Canada and the U.S. between Lake of the Woods and the crest of the Rocky Mts. was fixed at the
49th parallel. No boundary was decided upon farther west,
and Oregon was declared open territory for ten years.
1827- Emily Howland, received an honorary
doctorate by the University of the State of New York at age 99 for her
services to educating black students which included helping establish
or aiding more than 30 institutions of learning in the youth, and schools
in New York and Virginia.
1854-Until 1929, more than 150.000 homeless
children and poor families were transported out of New York City, Boston
and Chicago aboard trains accompanied by “agents.” Agents for the New
York Children’s Aid Society arranged for Midwestern families to take
the children under a contract agreement. Infants placed by the New York
1858-Birthday of James Robert Dewey, American
lawyer and legislator, born near Bloomington, IL, Republican member
of Congress from Illinois from 1896 until his death, Nov 30, 1922, at
Washington, DC. Mann was the author and sponsor of the "White Slave
Traffic Act," also known as the "Mann Act," passed by
Congress on June 25, 1910. The act prohibited, under heavy penalties,
the interstate transportation of women for immoral purposes.
1859-Birthday of John Dewey, American psychologist, philosopher and
educational reformer born at Burlington, VT. His philosophical views
of education have been termed pragmatism, instrumentalism and experimentalism.
Died at New York, NY, June 1, 1952
1873 - Showman P.T. Barnum opened the Hippodrome
in New York City to accommodate his "Greatest Show on Earth".
1898-John Merrick organizes North Carolina
Mutual Life Insurance Company.
The nations oldest
and largest black insurance company.
1901-Birthday of singer Adelaide Hall, Brooklyn,
1910 - A cork centered baseball was used
in a World Series game for the first time. The Philadelphia Athletics,
managed by Connie Mack, and the Chicago Cubs, managed by P.K. Wrigley,
were in competition for the championship.
1913-Trumpter Johnny Best born Shelby, NC.
With Glenn Miller 1939-42.
1920-Trumpter Ray Linn born Chicago, Ill.
With Herman, Shaw, Raeburn.
1931-Mickey Mantle birthday, Baseball Hall
of Famer, born at Spavinaw, OK. Mantle
replaced Joe DiMaggio in center field for the New York Yankees
and grew to become the most beloved player of his era.
His battle with liver cancer raised awareness for organ donation
and alcoholism. Inducted into the Hall of Fame in 1974.
Died Aug 13, 1995,
at Dallas, TX.
1934-Birthday of tenor sax player Eddie Harris,
Died November 8, 1966.
I’ll Walk Alone -
Is You is or is You
Ain’t - Bing Crosby & The Andrews Sisters
It Had to Be You
- Helen Forrest & Dick Haymes
Smoke on the Water
- Red Foley
1944- more than 100,000 American soldiers
land on Leyte Island, in the Philippines, as preparation for the major
invasion by Gen. Douglas MacArthur. The ensuing battles of Leyte Island
proved among the bloodiest of the war in the Pacific and signaled the
beginning of the end for the Japanese.
The Japanese had
held the Philippines since May 1942, when the awful defeat of American
forces led to General MacArthur's departure and General Wainwright's
capture. MacArthur was back, as he promised, but his invasion of Luzon
required a softening up of the enemy. Thus, the amphibious landing of
the American forces at Leyte and the concomitant goal of destroying
the Japanese fleet in the gulf was undertaken. All told, the Japanese
lost more than 55,000 soldiers during the two months of battle and approximately
another 25,000 in mopping up operations in early 1945. The U.S. forces
lost about 3,500-compared with the Japanese loss of 80,000 total. The
sea battle of Leyte Gulf was the same story. The loss of ships and sailors
was horrendous for both sides. The sinking of the American carrier Princeton
resulted in the drowning deaths of 500 men. When the Japanese battleship
Musashi was destroyed by a massive American aerial attack, more than
1,000 sailors died, including the captain who stood on his bridge and
literally went down with his ship. Three days of sea battle saw the
destruction of 36 Japanese warships-compared with America's three. It
also saw the introduction of the Japanese kamikaze-"divine wind"--suicide
bombers. The St. Lo, an American aircraft carrier, was one of the first
casualties, when one kamikaze pilot drove his plane straight into its
flight deck. More than 5,000 kamikaze pilots died in this gulf battle-taking
down 34 ships. But when all was said and done, the Japanese had not
been able to prevent the loss of their biggest and best warships, signaling
the virtual end of the Japanese Imperial Fleet. The American victory
on land and sea opened the door for General MacArthur's invasion and
the recapture of the Philippines. The television series “Victory at
Seas” captures much of this major battle.
You Belong to Me
- Jo Stafford
Wish You Were Here
- Eddie Fisher
I Went to Your Wedding
- Patti Page
Jambalaya (On the
Bayou) - Hank Williams
1953 - Science fiction writer Ray Bradbury's
chilling futuristic anti-book novel, Fahrenheit 451, was published on
1955 - On Broadway, "No Time for Sergeants"
opened, starring Andy Griffith.
1955 - One of Harry Belafonte's hits was
recorded for RCA Victor. It took "Day-O" over a year to hit
the pop charts in January of 1957, after its name was changed to "The
Banana Boat Song (Day-O)".
1957 - Tonight Walter Cronkite began hosting
a weekly documentary. Called "The 20th Century", the show
reported on major events that shaped modern history. In 1967, the show
switched its focus and its title to "The 21st Century". Until
its last show on January 4, 1970. Cronkite was the only narrator of
Save the Last Dance
for Me - The Drifters
My Heart Has a Mind
of Its Own - Connie Francis
I Want to Be Wanted
- Brenda Lee
Alabam - Cowboy Copas
1961- the Supreme Court upholds a Florida
law which exempts women from jury duty, unless they volunteer. In all,
18 states allow the jury duty exemption while three state, Alabama,
Mississippi, and South Carolina outright barred women from jury duty.
However, on 02-07-1966, a federal court rules that such laws
should end on June 1, 1967 because such laws "deny to women the
equal protection of the laws in violation of the 14th amendment." In January of 1975 the Supreme Court says a Louisiana law forbidding
women serving on juries is unconstitutional.
The first woman juror served in the State of New York in 1936
Hey Jude - The Beatles
Fire - The Crazy
World of Arthur Brown
Little Green Apples
- O.C. Smith
Then You Can Tell
Me Goodbye - Eddy Arnold
1973-The White House announced at 8:24pm
EDT, that President ‘Richard M. Nixon had discharged
Archibald Cox (Special
Watergate Prosecutor) and William B. Ruckelhaus ( Deputy Attorney
General)(, and that
the Attorney General Elliot L. Richardson, had resigned. Immediate and widespread demands for impeachment of the president
ensued and were not settled until President Nixon resigned August 9,
Disco Duck (Part
1) - Rick Dees & His Cast of Idiots
Lowdown - Boz Scaggs
If You Leave Me Now
You and Me - Tammy
1979 - The John F. Kennedy Library in Boston
1983-“ The Six Million Dollar Man” premiered
on TV. This action-adventure series based on the novel
“Cyborg” was a monthly feature on “The ABC Suspense Movie” before becoming
a regular series in 1974. Lee Majors starred as astronaut Steve Austin,
who after an accident, was “rebuilt” with bionic legs, arms and an eye.
He worked for the Office of Strategic Information (S) carrying
out sensitive missions. Also in the cast were Richard Anderson, Alan
Oppenheimer and Martin E. Brooks. “The Bionic Woman, “ staring g Lindsay
Wagner, was a spin-off from his show and the two main characters were
paired for several made-for-TV sequels.
I Just Called to
Say I Love You - Stevie Wonder
Caribbean Queen (No
More Love on the Run) - Billy Ocean
Hard Habit to Break
I Don’t Know a Thing
About Love (The Moon Song) - Conway Twitty
Groovy Kind Of Love-
Kokomo (From The
"Cocktail" Soundtrack)- The Beach Boys
Wild, Wild West-
The Escape Club
Red Red Wine- UB40
Oakland Hills fire, California
Just Kickin It- Xscape
I d Do Anything For
Love (But I Won t Do That)- Meat Loaf
All That She Wants-
Ace Of Base
1995 - The clever black comedy, Get Shorty,
starring John Travolta, Rene Russo, Gene Hackman, Danny DeVito, and
Dennis Farina, opened across the country. The film did well at the box
office, and once again affirmed Travolta's "come back" to
2000 -Toronto signs Carlos Delgado to a record four-year $68 million
contract. The Blue Jay first baseman's average salary of $17 million
is the most in major league history.
Look of Love---Diana
Silver Side Up-Nickeback
Pain is Love-Ja Rule
Songs in a Minor-Alicia
2002- Twenty-year old Venezuelan right-hander
Francisco Rodriguez becomes the youngest pitcher ever to win a World
Series game. With just 15 days of major league experience, K- Rod throws
37 pitches retiring 9 consecutive batters in three innings to pick up
the victory as the Angels out slug the Giants in Game 2, 11-10.
World Series Champion This Date
1982--- St. Louis Cardinals
1988—Los Angeles Dodgers