2004 January Issue

JANUARY 2004
Artful Approaches to Equipment Management

FEATURES

Artful Equipment Managers Avoid the Big "Stick"
By William Tefft
In the same manner in which great artists create great works by deftly balancing art and science, so can expert asset managers create their own masterpieces by employing discipline and diligence in every transaction - masterpieces that could make even a chief credit officer smile. (Ref # EQM125)

Semiconductor Equipment… Understanding the Market, Technologies & Competition
By Chris Nugent
Lessors are required to assess equipment values to calculate lease pricing, evaluate credit risk, and determine advance rates. Determination of equipment residual and collateral values requires a thorough understanding of markets, technologies, and the competitive environment. (Ref # EQM126)

6th Annual Fleet CFO Survey: Optimism on the Economy, Mixed on Manufacturing
By Jeff Wilson
While Chief Financial Officers of U.S. middle-market companies are optimistic about the economic recovery over the next year, their outlook for the manufacturing sector is less certain. So says the sixth annual "Survey of Manufacturing Company CFOs," commissioned by Fleet Capital Corporation. (Ref # TRE061)

Asset Management Outsourcing: New Opportunities for Growth
By Tim Bowes
The opportunity exists for fleet lessors to create and profitably manage an asset management product which bundles a selection of services and financing options from a customer driven menu. Leveraging these technologies, fleet lessors are in a position to support new and existing customers with value added services. (Ref # EQM124)

CAT Financial… An Ongoing Journey to Business Excellence
Nashville-based Caterpillar Financial Services Corporation (CFSC) was recently honored with Malcolm Baldrige National Quality Award, the nation's highest recognition for quality and business excellence. The Monitor asked CFSC President Jim Beard to share his thoughts on receiving the award, the selection process and what it means for the company and its employees. (Ref # CPR086)

Equipment Lifecycle Management: Taking Control of Capital Assets
By Trey Brown
Equipment Lifecycle Management recognizes the continuous dynamic tension between rapidly changing technologies, shorter product cycles, longer lasting equipment values, and the need to carefully manage financial resources. Companies must devise a plan that encompasses acquisition to optimization through disposition, to stay on top of their constantly changing capital equipment needs.
(Ref # EQM123)

Railroad Infrastructures: Successful Valuations Via Thorough Due Diligence
By Rick Daubenspeck
The intent of this article is to provide the reader with the concept of what is involved in developing a valuation for rail infrastructure. Any good appraiser knows that the steps involved in the valuation process will vary based upon the circumstances and the difference between a good and a mediocre process is considering all of the scenarios while developing the actual due diligence that will be required in order to successfully complete an analysis. (Ref # RAI010)

Next Generation Software: What the Future Holds
By Charles D. Lyles
When it comes to selecting software, lessors face a difficult choice. They can entrust the specialized leasing functions to enterprise-oriented, general-purpose systems at the risk of losing functionality. Or they can use focused, highly developed leasing software and find ways of fully integrating it with their enterprise systems. This is, perhaps the greatest challenge facing IT today in the leasing arena.
(Ref # SFP009)

Trucks, Tractors & Trailers… Clean Air (& More) Without A Clean Wallet
By Michael E. Winterfeld
While the over-the-road transportation industry moves towards cleaner burning engines and cleaner air, surprisingly it's not cleaning out your wallet in the process. Whether you are leasing tractors or trailers, with today's lower cost of funds, the carrying cost of better specs is minimal, and may actually add more dollars at the end of term. (Ref # TRU008)

Outsourcing Inspection Needs: A Prudent & Economical Approach
By H. Raymond Schnable
Outsourcing through professional inventory inspection companies created economies of scale that banks, manufacturers, and lending institutions never imagined when they operated their own inspection organizations. Today, lenders are quick to realize the best way to minimize or prevent loss is to enlist the services of outsource inspection companies. (Ref # OUT018)

Beyond The Tipping Point - Confronting Seismic Shifts (Part I)
By Jay M. Mudrick
In his breakthrough 2000 bestseller "The Tipping Point", author Malcolm Gladwell explained the dynamics of change. By studying the nature of epidemics, he shows how small and seemingly insignificant events sometimes have much broader and more global consequences. The equipment leasing industry is currently "beyond the tipping point". Monumental changes are afoot that will dramatically and fundamentally alter the leasing industry within the next three to five years. (Ref # TRE062)

COLUMNS

CAREER MOVES
Finding the Upside If You’re Upside Down
By Jim Pawlak
Gary Gabel’s book “Personal Takeover” will help you find the upside if you’re upside down. It will also keep you focused on what you must do to remain optimistic, realistic and energetic about your job and career. (Ref # JBS077)

LEGAL WATCH
Secured Creditor’s Lien Priority Survives Lapsed Financing Statement
By Lesley Anne Hawes
A recent decision by the Court of Appeals for the Eighth Circuit establishes the continuing lien priority of a security interest after confirmation of a Chapter 11 plan despite the secured creditor’s failure to file a continuation statement. (Ref # LGL1016)

DISPATCHES FROM THE TRENCHES
Realizing Upon Collateral Under Revised Article 9
By Kenneth P. Weinberg, Marks & Weinberg, PC
There has been a dramatic revolution in recent years in the technology and information available to the collection industry, but the technology and the information is only as good as its implementation. The “art” still lies in the application of the science. (Ref # LGL1017)