In a survey of more than 1,400 middle-market CFOs, we asked respondents to outline their capital expenditure intentions for 2024. Here’s what we found: <em>Note: Data below is the breakout of capital expenditure spend intent for 2024 compared with 2023.</em> <style>/*! elementor - v3.20.0 - 11-03-2024 */<br /> .elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=".svg"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}</style> <img src="https://suitebymonitor.com/wp-content/uploads/2024/03/1q24mmcapex.webp" sizes="(max-width: 426px) 100vw, 426px" srcset="https://suitebymonitor.com/wp-content/uploads/2024/03/1q24mmcapex.webp 426w, https://suitebymonitor.com/wp-content/uploads/2024/03/1q24mmcapex-300x186.webp 300w" alt="" width="426" height="264" /> <strong>Key Takeaways</strong> Overall, middle-market CFO capex sentiment is down 12% year over year, with 19% of the overall group looking to increase capital spending. Here are some sector-specific takeaways. <ol> <li>Manufacturers are under pressure due to rising material costs, continued logistics and supply chain challenges and a messy labor situation all combined with reshoring and automation necessities. Pick your spots carefully. There are many subcategories of manufacturing doing well and expanding, but the overall segment is in a downward capex trend. It also is important to note that as labor becomes more difficult to find, many manufacturers have no choice but to invest in automation technologies. Those firms might be more interested in flexible capital than in previous years.</li> <li>Healthcare is showing a strong decline, but that is largely related to a tepid bond market in 2023. As bond markets return to what we might call a new normal, we anticipate a lower but less severe capex outlook for the balance of 2024. Be on the lookout for next quarter’s update!</li> <li>Technology firms are surging. Data centers, security firms and cloud providers are all ramping up capex to meet continued and unprecedented demand.</li> <li>Food and beverage remains a strong and durable sector that generally lives below investment grade and above the “too tough to handle” credit profile for many. This sector has long been a staple for equipment financiers and will likely continue to be so in 2024.</li> <li>Construction booms. It turns out that if you authorize more than $1 trillion in government spending for infrastructure in a two-year span, optimization looms large when the money finds shovels. In 2024, money will find the shovels. Be on the lookout for more data and research on this issue in the coming weeks.</li> <li>Transportation suffers. An incredibly powerful contributor to the equipment finance industry is on defense right now for a variety of reasons, ranging from freight volumes and labor to equipment costs and rates.</li> </ol> More research and insights on capex sentiment can be made available by contacting Secured Research. <a href="https://securedresearch.com/"><em>Secured Research</em></a><em> is a joint venture between the publications, events and training capabilities of Monitor/ABF Journal and Sawbux, a leading marketing, research, data and analytics firm specializing in commercial finance. We’re combining the brand strength of the 50-year leading independent voice of commercial finance with a unique multi-million-dollar research engine that’s been in place serving finance decision-makers for more than 14 years. </em><em>To learn more about how these research capabilities can be deployed for your company’s needs, </em><a href="https://securedresearch.com/"><em>contact us here</em></a><em>.</em> <a href="https://securedresearch.com/"> <img src="https://suitebymonitor.com/wp-content/uploads/2024/02/ad.webp" sizes="(max-width: 612px) 100vw, 612px" srcset="https://suitebymonitor.com/wp-content/uploads/2024/02/ad.webp 612w, https://suitebymonitor.com/wp-content/uploads/2024/02/ad-232x300.webp 232w" alt="" width="612" height="792" /> </a> <em>2024 research is delivered through the new <a href="https://securedresearch.com/">Secured Research and Data Solutions</a> pulse and market research of the secured finance sector.</em>