PayNet maintains the largest repository of historical lease and loan payment information based on the U.S. small-business economy. Data compiled from PayNet's “real-time” proprietary database provides a unique window into the world of small business lending/credit trends.

One of the places we look to chart economic growth is the health of small business. Small businesses are a big driver of economic growth, as they employ about half of the nation’s private sector work force, and create most of the nation’s new jobs. There is wavering confidence in the strength of the recovery and cautious small business investment. PayNet analyzed construction and transportation data from its proprietary database to present at the Reuters Global Manufacturing and Transportation Summit, New York, December 12, 2011. The following describes some of the observations from the analysis.

Insights from the construction data

• Demand for industrial equipment is making a comeback.
• Sale of construction equipment is up 24% over last year. It hit rock bottom, down 60%, mid-2009 and started growing again mid-2010.
• Commercial builders are a strong mover within construction. Investment in capital equipment snapped back with healthy double digit increases each of the last 5 quarters.
• Heavy construction, such as highways, streets, bridges, water systems and sewer projects, shows double digit increases in 3 of the last 5 quarters.

Insights from the trucking data

• Trucking equipment is on track. Sales of heavy and medium duty trucks are up 14% year over year.
• Trucking lending bottomed earlier than Construction equipment manufacturing in early 2009 and recovery began earlier in late 2009.
• Current truck investment is above pre-recession levels and it is gaining momentum as the growth rate has accelerated from 15% prior quarter to 21% recent quarter.
• Outsourcing transportation is a noticeable trend in the economy.
• 12 of 19 industry categories are shrinking their transportation portfolios. The only categories that show substantial portfolio growth are Moving & Storage companies and Bus companies.

Topline Trends in the New Economic Order:

• Traditional “mom & pop’s” are being replaced by mega-businesses.
• Farmers are utilizing technology and equipment to produce 20,000 acres with minimal people.
• Agri-services are emerging, for example large grain storage providers.
• Retail Food Stores are consolidating into larger.
• Small trucking companies are disappearing and merging into larger truck companies.
• The Heavy Construction companies are less likely to sustain their growth without stimulus dollars.

Click here to download a copy of the full presentation.