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In The Marketplace

By ALM Staff | Law Journal Newsletters |
February 24, 2005

Nassau Asset Management of Roslyn Heights, NY has released its NasTrac Quarterly Index (NQI), which shows that repossessions of construction equipment dropped by 53% during the four quarters of 2004. In addition, when all four quarters of 2004 are compared with 2003, the report shows the annual volume of construction repossessions was down 6%.

Ed Castagna, senior executive vice president of Nassau, notes that these figures correlate with CIT Equipment Finance's 2005 Construction Industry Forecast that surveys U.S. construction executives. CIT's survey recently reported that contractors plan to double their spending on new equipment this year. Likewise, 54% of equipment distributors expect to sell more new equipment this year than they did in 2004.

On the negative side, the NQI also showed that despite an overall drop in the volume of construction equipment repossessions in 2004, the value of repossessed construction equipment actually rose during the fourth quarter. Castagna reported that more cranes and top-dollar equipment went on the block in the fourth quarter, as did equipment seized from smaller industry players squeezed out of business by larger companies. The result was a 131% increase in the value of construction equipment Nassau repossessed in the fourth Quarter 2004 compared with fourth Quarter 2003.

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