Oh look, the industrial machinery sector is back in the headlines, and this time it’s not because some poor intern got crushed under a conveyor belt. No, this is about money—the kind of money that makes bankers drool and construction guys throw their hard hats in the air. According to the crystal ball gazers at Research Nester, the global industrial machinery market is on track to blow past $2.1 trillion by 2037. Yes, trillion. With a “T.” If that doesn’t make Wall Street start measuring itself with a crane, I don’t know what will.
Meanwhile, in the land of red hats and tax cuts, President Donald Trump’s One Big Beautiful Bill Act is promising 100% expensing on manufacturing equipment purchases. You heard that right—100% immediate deductions, even on used equipment. That means Uncle Sam is basically footing the bill while companies go on a shopping spree for CNC machines and forklifts like it’s Black Friday at Home Depot. Lenders, naturally, are circling this like sharks around a tuna boat.
Reshoring: The Sexy Buzzword of the Decade
Remember when we outsourced everything to China because it was cheap? Yeah, well, apparently that was a mistake. Enter reshoring, the economic equivalent of crawling back to your ex because the new fling didn’t work out. Companies are dragging their supply chains back to the U.S., and with them comes the need for new equipment—lots of it.
Mark French of Crest Capital is basically screaming from the rooftops: “Reshoring will be a ripple effect.” Translation: everyone and their mother is going to need new CNC machines, automated handling systems, and robots that do everything except fetch coffee. Oh, and thanks to Trump’s 100% expensing clause, companies are about to jam three years’ worth of purchases into the next year and a half. Imagine Black Friday but with forklifts instead of flat screens.
Automation? Check. Tax incentives? Check. Lenders? Already salivating.
The Materials Handling Market: Forklifts for Days
Let’s talk forklifts—because apparently these bad boys are the crown jewels of the material handling market. The U.S. material handling leasing and finance market is projected to grow 73.4% to $16.3 billion by 2032, according to Verified Market Research. So basically, we’re about to have forklifts breeding like rabbits in warehouses across America.
Why the sudden forklift fetish? Well, besides the fact that everyone wants to automate everything, the tax breaks make it stupid not to buy. And guess what? Lenders love when businesses buy stuff they can repossess if things go sideways. Forklifts, conveyor belts, generators—these things hold their value better than my first car (which, by the way, was worth less than the air in its tires by year three).
Trump’s Tax Bill: Christmas Came Early for Lenders
Enter the One Big Beautiful Bill Act—a name so on-brand for Trump it practically screams “I put my name on it.” This little legislative gem allows 100% immediate deduction on qualified production property, even used equipment. Yes, folks, even that rusty CNC machine collecting dust in some dealer’s yard is now a tax write-off.
French from Crest Capital says lenders can help borrowers map every asset to qualify for the deduction. Translation: lenders are turning into equipment Santa Claus, making sure every nut, bolt, and air compressor qualifies. Why? Because more deductions mean more deals, and more deals mean fatter profits.
Construction: The Golden Child of Financing
Meanwhile, over in the construction sector, lenders are equally giddy. Eduardo Cruz of Commercial Equipment Financing is practically glowing when he talks about roofing contractors, granite guys, and landscapers. Why? Because the stuff they buy—like skid steers and roofing rigs—holds its value. That’s lender-speak for “if you default, we can sell your toys and still make money.”
And let’s not forget infrastructure spending. The Dodge Construction Network predicts a 10% rise in infrastructure project starts in 2025 to $360 billion. That’s a lot of roads, bridges, and random projects that will probably take twice as long as promised but still keep the cash flowing. Lenders love that.
Dealer Relationships: Because Equipment Is the New Tinder
Cruz also points out that relationships with dealers are the secret sauce. Forget swiping right on Bumble—lenders are swiping right on vendor partnerships. Why? Because smooth relationships mean smoother deals, faster funding, and fewer headaches. Plus, technology is making these partnerships seamless. Think fintech meets bulldozers.
The Bigger Picture: Industrial Machinery Is the New Bitcoin
Okay, maybe not literally, but the hype is real. With the global market expected to more than double by 2037, North America hogging nearly half of the revenue share, and tax incentives making it rain, the industrial machinery sector is shaping up to be the darling of the next decade.
Sure, there are risks. Interest rates could spike, supply chains could implode again, and robots could unionize (don’t laugh—it’s 2025, anything’s possible). But for now, lenders are betting big on the idea that the bulldozers, forklifts, and CNC machines of the world will keep the cash registers ringing.
Final Word: Bring on the Boom
So what does this all mean? It means lenders have found their new playground, and it’s paved with tax breaks, reshoring deals, and shiny new machinery. The manufacturing and construction equipment sectors are the hot prom dates right now, and lenders are lining up with corsages and financing contracts.
The next 12 to 18 months are going to be wild. Expect to see companies buying equipment like there’s no tomorrow, lenders throwing money at anything with wheels and gears, and Trump taking credit for every single crane that pops up on the skyline.
Buckle up, America—because the bulldozers are back, baby, and this ride is just getting started.