Supply chain disruptions have not deterred Australian businesses from procuring a record number of machinery and equipment goods in financial year 2022.
A record number of Australian businesses invested in new equipment and machinery data from the Commonwealth Bank (CBA) has revealed.
CBA in FY22 recorded the largest volume of new asset finance lending in history.
Agriculture, manufacturing, and production drove demand for equipment and machinery.
In NSW, there was a staggering 93 per cent jump in finance for earthmoving equipment along with a 27 per cent rise in funding for trucks.
Purchases for assets including forklifts (up 49 per cent), trailers (up 37 percent), cranes (up 26 per cent) and trucks (up 13 percent) topped the list.
CBA Group Executive Business Banking Mike Vacy Lyle said this growth in FY22 suggested most businesses were still positive about the future notwithstanding the impact of rising costs and constraints in supply chain.
“Australian businesses have proved resilient as we’ve adjusted to living with Covid-19,” Mr Vacy-Lyle said.
“Many have increased their investment in productive capacity to strengthen their businesses and are taking positive action to overcome issues including supply chain disruptions by refining procurement processes and asset management.
“This led to significant investment in new vehicles, equipment and technologies in FY22. Businesses are continuing to adapt their strategies in response to the changing operating landscape and ongoing uncertainties in the domestic and global environment.”
The equipment hot list
Largest new lending growth in FY22 (compared to FY21) by asset type:
- Forklifts +49 per cent
- Trailers +37 per cent
- Cranes +26 per cent
- Trucks +13 per cent
- Agriculture +11 per cent (eg harvesters, headers and all-terrain vehicles)
- Prime movers +11 per cent
The increase in funding for construction equipment and construction vehicles was largely driven by business demand in New South Wales, Queensland and Western Australia, CBA said.
Other State insights:
- There was an 18 per cent increase for agriculture equipment in Victoria
- In Queensland there was a 39 per cent rise in finance for earthmoving equipment
- In Western Australia, funding for earthmoving equipment increased 22 per cent while there was a 42 per cent rise in finance for trailers and heavy haulers
