Equipment finance sector prepares for “Gen Z”

Equipment finance companies need to be prepared to work with a new generation of employees that is very different from Millennials, according to research by the Equipment Leasing & Finance Foundation.

Its report examines the impact of the next generation maturing into adulthood – Generation Z – from both an employee and customer perspective.

It is based on discussions with 16 equipment finance industry executives who convened in Washington, DC, in February to bring into focus matters that equipment leasing and finance firms may want to consider as they plan for future growth.

The research findings from the 2018 Industry Future Council (IFC) suggest that young people joining the industry will embrace change and new technologies while working with older employees who may have different business and social perspectives.

Challenges include waning interest in owning equipment as members of Generation Z focus on paying for use.

At the same time, companies will experience disruption from changes occurring in social, technological, environmental, economic, and political arenas.

Other potential issues and trends likely to hit the sector by 2030 include a drop in the number of employees as roles are replaced with automation and artificial intelligence, while employees will need to ensure all products, services, and information align with dominant social values, being delivered and accessed by the methods customers prefer.

Companies will need to be sensitive to how customers choose to adopt and use various technologies.

Jeffry D. Elliott, Foundation chairman and senior managing director of Huntington Equipment Finance, said: “The equipment finance industry is already in the midst of incredible change, and the pace will continue to accelerate.

“The IFC report provides industry leaders with a structured approach for envisioning their future talent and customers so they can better plan for their success.”

The 2018 IFC report is available for download at https://www.leasefoundation.org/industry-resources/industry-future-council/.