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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.” Michael Fleming MFLEMING@ELAMAIL.COM 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.” Michael Henderson Director, Membership & Marketing Equipment Leasing Association 4301 N. Fairfax Drive, Ste. 550 Arlington, VA 22203 703.527.8655; 703.527.2649 (Fax) mhenderson@elaonline.com; http://www.elaonline.com |
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