Mitsubishi HC Capital America, a non-bank, non-captive finance provider in North America, conducted a survey of clients across the transportation and construction industries to understand the challenges of modernizing supply chains. As manufacturers look to modernize operations and plan for future growth, these survey results will be a powerful tool for developing resilient and informed strategies for industry leaders.
Supply chain challenges impact more than just the flow of materials — they influence project timelines, production costs and a borrower’s ability to repay loans. For financing leaders at manufacturing organizations, these disruptions can create significant uncertainty for short-term and long-term planning. Mitsubishi HC Capital America’s recent survey results offer valuable, real-world insights that help leaders assess risk more accurately and align financing strategies with market realities.
Survey Key Findings
The survey findings underscore the complex and rapidly evolving challenges businesses face today. Although emerging technologies aren’t yet seen as major disruptors, policy changes and tariffs are starting to make a noticeable impact. In response, companies are taking varied approaches — some anticipate little change in their equipment needs, while others are preparing to replace aging assets or adapt their strategies to navigate growing economic uncertainty.
At the same time, modernizing operations remains a significant hurdle for many organizations. Rising transportation costs and volatile market conditions continue to complicate efforts, particularly when integrating new technologies with outdated infrastructure — a challenge cited by 90% of survey respondents.
To navigate these complexities, businesses are increasingly turning to creative financing solutions. An overwhelming 90% indicated they are likely to leverage financing for new equipment purchases to manage immediate financial pressures while investing in long-term growth. Among them, 68% preferred long-term, low-payment financing structures that support their strategic planning, as 48% cited high equipment costs as their most significant modernization challenge. Meanwhile, workforce challenges persist, with nearly half of respondents (46%) reporting issues related to a skills gap or talent shortage, adding another layer of challenges to adapting to today’s market.
Other key insights include:
- Rising Costs: 74% of respondents reported equipment costs have increased in the past year, with 47% seeing significant increases.
- Skills Gap: 46% of organizations are experiencing talent shortages, with equipment purchases (53% of those addressing shortages) emerging as a key strategy to address workforce challenges.
- Modernization: 70% consider their organizations “on track” with modernization efforts despite significant challenges, with 37% assessing their technology needs annually.
- Business Pipeline: 69% report stable or increasing business pipelines currently, with 44% expecting continued growth in the next six months.
- Operational Challenges: The main performance issues are staffing shortages, supply chain disruptions, and technology limitations. Some respondents also mention difficulties in accessing financing.
- Equipment Investment: 47% of organizations purchased new equipment within the last year, with an additional 41% making purchases in the last 1-3 years, demonstrating continued investment despite economic challenges.
- Transportation Sector Needs: 50% of respondents identified transportation and logistics as requiring the most modernization, highlighting significant pressure in this critical sector. Respondents cited specific challenges including “instability in transportation” and concerns about “transportation rates and fuel costs.”
The survey also highlights a significant gap between how businesses currently finance equipment and their preferences. While 74% of organizations rely on traditional bank loans for equipment acquisition, the strong preference for flexible, long-term financing options indicates a significant opportunity for alternative financing approaches that better align with today’s economic realities. This is particularly relevant as businesses balance immediate cost pressures with long-term modernization needs.
Ultimately, the survey results underscore the multifaceted challenges that organizations face as they work to modernize in a dynamic market. From rising operational costs to labor shortages, adapting is far from straightforward. However, the preference for innovative financing solutions reflects a shift in strategy as manufacturers balance short-term pressures with long-term objectives.
