Research, intelligence, and forecasting are necessary for companies in a variety of industries to make the right investment decisions. It is important to look at the investment rates in certain types of equipment to drive your growth and competitiveness in your market. The following is a brief overview of overall company investment trends in computers and software in the United States.
Computer and Hardware Investments
The annualized rate of company investments in computers and hardware increased by 18 percent in the second quarter of 2019. The rate increased by 4.9 percent year over year. There was a 1.8 percent decrease in new orders for computers June, and the Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) decreased by 0.5 points in July, which was a decline for the eighth month in a row. Generally speaking, this data indicates a positive growth – while slow – of investments in computers and hardware for the upcoming two quarters.
Software investments appear to have a stronger trend than hardware currently. The annualized rate of company investments in software increased by 7.5 percent in the second quarter of 2019, and increased by 10 percent year over year. The momentum of software investments reached the highest level in August since October of 2018. IBM experienced a market cap increase of 7.5 percent in July, while there was a 2.2 percent increase of the S&P 500 Software & Services Index. These numbers indicate solid growth for the next two months.
Your Technology Investments
Trends and data are important to guide decisions regarding your company’s prioritized investments in tech equipment. You want to stay competitive in the market, which requires matching your competition in the caliber of software and hardware your team has access to. Too many company leaders fail to recognize the value in ongoing investments, and they rest too long on a past investment. This often allows your competition to quickly pass you by and provide greater service with greater efficiency.
One way to ensure you can regularly upgrade your equipment is to consider all available financing options. At Blue Street Capital, we know that your IT and equipment budgets might be tight. In many cases, this leads companies to think that upgrades are impossible or should not be prioritized. However, by regularly addressing your tech investments, you can increase your ROI much faster than by sitting on a one-time investment.
Our team helps your enterprise minimize the risk of investments and maximize the benefits you can receive from keeping up with trends and always having state-of-the-art equipment. We help you explore flexible solutions that improve cash flow, allow for growth, and that even provide tax benefits for your company.
Discuss Your Tech Equipment Needs with Blue Street Capital Today
Do not risk falling behind on technology trends for your business. Instead, set up a consultation to learn more about how Blue Street Capital can help you stay ahead of the curve.